Value Chain Narrow Minded

Value Chain (Porter)
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Value Chain Narrow Minded

Porters value chain is very good at explaining how a product adds value throughout the whole process starting from procurement and ending with reaching the end user. Supporting activities also add value to the product, though indirectly. Value chain analysis, despite of being for long in business studies, still is one of highly theoretical concepts.
But what is the value of value chain analysis if a more efficient, cheaper substitute rivals a firm's product?
None. That is exactly what Chine has realized recently. Not only production of currently common goods but also acquisition of promising R&D for future production of substitutes. Although value chain is industry-based analysis, it can also be applied country-based.

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