Value Net vs. Value Chain

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Shabnam Nazelian

Value Net vs. Value Chain

What is the difference between the "value net" and the "value chain"?

  Jaap de Jonge
Editor, Netherlands

Value Net and Value Chain

Hi Shabnam, look here for more info on the value chain, a well known model by Porter.


Value Net versus Value Chain

Value Net Model talks about cooperation and coopetition to maximize the market share (inspired by Porter's 5 forces)
Value chain is about analyzing and optimizing all activities and processes within a firm.

  Younis Jabarzadeh
Project Manager, Iran

Value Chain versus Value Net

Hi Shabnam, we can say that the Value Chain is part of a Value Net. A value chain is a sequence of functions operating in order to produce a value (product or service) for customers. Imagine a car making company from mines and steel factories, various parts manufacturers, assembly line, dealers and customers. This semi- series line can be called a value chain (compatible with the vertical pivot in the above chart. The main players or actors in a value chain are suppliers, company and customers. But in value net we may have other players like competitors who may be included in other value chains (different from ours).

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