Value network
A value network comprises connected participants and activities that together create and deliver value. Relationships may involve suppliers, distributors, customers, partners or complementary providers, with information and benefits moving in several directions. Competitive advantage can depend on coordination and cooperation across the network, not only on one organisation’s internal efficiency. Porter’s value system is a related perspective that connects participants’ value chains, rather than a universal exact synonym for every value network.
Worked example
A furniture maker coordinates timber specifications with suppliers and delivery appointments with retailers. Better information across these links can reduce damaged stock and failed deliveries while improving the customer experience.
Common mistake
Do not define Porter’s value system as an organisation’s ethical beliefs. Also distinguish a network spanning organisations from the activities within one company’s value chain.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |