A value chain is a business model in which actions and processes within a company add value to its products or services for customers. These actions and processes can include research and development, production, marketing, distribution, and customer service. Each step in the value chain helps to differentiate a company's offering from competitors and drive profits. By analyzing the activities within the value chain, a company can pinpoint areas for improvement and increase overall efficiency. This can ultimately lead to increased competitiveness and profitability in the market. Understanding and managing the value chain is important for businesses looking to gain a competitive advantage in their industry.