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
- How Norway?s 329 Winter Olympic Medals Help a Company Making Smart Skis
- What's the No. 1 Risk You Face in the Next 10 Years?
- Well-Positioned to Serve the Natural Gas and LNG Needs of Governments and Businesses
- How 1 Utility Uses Exploration to Grow Earnings
- SolarCity Is a Growth Machine But Is That Enough?
- SunPower's CEO Answers 5 Burning Questions