A value chain is a sequence of processes to create a product.
A product goes through all the processes in this chain in a certain order, and during each process it gains additional value. And by going through the whole chain, the product acquires more value than the sum of the value of all the processes.
A value chain analysis evaluates how much value each process adds to the product.
This model emerged from the idea that a company is not a random combination of equipment, money and management. Only if these components are organized into a system and used correctly is it possible to produce a product that consumers will be willing to pay for.