The value chain is the process by which products start as simple raw materials and ultimately become finished products and are sold to consumers.
A simple example is steel. A mining company mines iron and coal, which are then combined to form steel. The steel is then sold to an auto manufacturer who uses it to form various car parts. The car is then sold to a consumer. Each step along the way is a link in the value chain.
Recent Mentions on Fool.com
- 3 Future-Proof Manufacturing Stocks for Your Portfolio
- Oil Stocks: How You Can Find the Best Oil Investments
- Why Suncor is One of the Biggest Warren Buffett Stocks
- 3D Printing Stocks: Why Expertise Could Become More Important Than Products
- Once Cheap, Always Cheap: Why McDonald's Can't Raise Its Prices
- Why Solar Panels Are More Important Than Ever