Lesson Summary

The value chain is the full range of activities a business goes through to bring a product or service from its conception to its end use. It was first introduced by Michael Porter in his book "Competitive Advantage: Creating and Sustaining Superior Performance."

In the design profession, many believe that their design skill is their competitive advantage, but this is not the case. To differentiate from competitors and showcase true value, it is important to think about actions that add value at every step of the journey.

The value chain can be broken down into two parts: primary activities and support activities. Primary activities include getting the job, doing the work, and delivering it to the client. Support activities refer to how the firm operates, how employees are managed, and what technologies are applied to the work.

Optimizing the entire value chain, rather than just individual stages, is key to success. A well-managed value chain leads to higher client satisfaction, repeat business, referrals, and a strong reputation in the industry.

Similar to athletes striving for overall fitness, business leaders should not solely focus on their strengths and passion. By understanding and nurturing all aspects of the business, including marketing, customer service, finance, and human resources, they can unlock greater potential and achieve a competitive advantage.