TY  - JOUR
AB  - Purpose–Porter's value chain has been a keystone of strategic analysis. However, because of processes associated with economic globalization: outsourcing, brand marketing and “knowledge economy” phenomena, value drivers have changed dramatically over the last 20 years. The added‐value chain provides an expanded mental model for practitioners and academics to develop and communicate strategies for value creation.Design/methodology/approach–The expanded set of activities in the added‐value chain was developed based on experience using the value chain in real world situations and analyzing leading business and strategy models that are commonly used by firms today.Findings–The added‐value chain incorporates new sources of value creation such as the firm's brand, reputation and “social capital” or goodwill in addition to profit margin. The Added‐Value Chain also adds three primary activities.Practical implications–Managers performing value‐chain analysis need to take into account newly important business drivers.Originality/value–Expanding the value chain ensures that no potential strategic activity is forgotten and no opportunity for enhancing value is over‐looked.
VL  - 34
IS  - 4
SN  - 1087-8572
DO  - 10.1108/10878570610676873
UR  - https://doi.org/10.1108/10878570610676873
AU  - McPhee Wayne
AU  - Wheeler David
PY  - 2006
Y1  - 2006/01/01
TI  - Making the case for the added‐value chain
T2  - Strategy & Leadership
PB  - Emerald Group Publishing Limited
SP  - 39
EP  - 46
Y2  - 2024/04/20
ER  -