What does the value chain perspective see business as?

The value chain perspective views business as a chain of activities that transform inputs into outputs. This concept, introduced by Michael Porter, emphasizes the series of steps that companies take to deliver a product or service, highlighting how each activity contributes to value creation and competitive advantage.

In this framework, each activity—from raw material procurement, manufacturing, to marketing and distribution—plays a crucial role in enhancing the product's value for customers. The focus is on optimizing these processes to improve efficiency, reduce costs, and increase customer satisfaction. By analyzing each activity within the chain, businesses can identify opportunities for improvement, innovation, and differentiation in the market.

This perspective is invaluable in strategic management as it helps organizations understand how they can create value at each stage of their operations, leading to better strategic decisions and enhanced performance in the competitive landscape.