In a highly competitive global market and with ever-increasing rational buyers, a company can only win by creating and delivering the best customer value than other competitors . To be successful, a business must use value chain concepts. In 1985, Michael Porter identified that – a value chain is a chain of activities that create value in order to provide the customer with a level of value that exceeds the cost of activities, than the competition, thereby generating a profit margin. Competitive advantage comes from carrying out these activities in a more profitable manner than competitors. The Concepts and Benefits of Value Chain Analysis Value chain analysis can be examined to determine whether they provide opportunities for differentiation or cost reduction. According to Porter, the value chain model is a useful analytical tool for defining a company's core competencies and activities in which it can gain competitive advantage by following one of two strategies: • Business advantage cost: by better understanding costs and limiting them. value-creating activities. The main goal of this strategy, also known as cost leadership, is to offer goods and services at a lower cost than competitors. To follow this strategy, a company also considers these approaches: strict cost control, economies of scale in production and also cost minimization. • Differentiation: focusing on activities associated with core skills and capabilities in order to perform them better than competitors. The key point of this strategy is to create something that customers feel is unique. It depends on the company, the strategy they would adopt comparing that of their competitors. It doesn't matter whether they follow a cost leadership or differentiation strategy, they must manage their own value chain..