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
- Stocks to Hedge Oil and Gas
- Upcoming Solar IPO Could Give Investors Another Residential Solar Play
- 3 Best Stocks to Invest in Personal Computing
- 3 Energy Stocks John Rockefellar Would Buy If He Started Over Today
- 3 Energy Stocks John Rockefeller Would Buy If He Started Over Today
- Mukesh Ambani: Going Backward to Move Forward and Making Billions in the Process