Porter proposed a general-purpose value chain that companies can use to examine all of their activities, and see how they're connected. The way in which value chain activities are performed determines costs and affects profits, so this tool can help you understand the sources of value for your organization. Elements in Porter's Value Chain. Starbucks as an example of the value chain model (For related reading, see "Industry Handbook: Porter's 5 Forces Analysis.") What are the primary activities of Michael Porter's value chain? The Value Chain The term ‘Value Chain ’ was used by Michael Porter in his book "Competitive Adva n tage: Creating and Sustaining superior Performance" (). T he value chain analysis describes the activ ities the organ i-zation performs and links them to the organizations competitive pos ition.
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