Porter’s Value Chain Analysis is a framework for understanding how value is created in an industry. The analysis can be used to understand the different activities involved in the value creation process and identify key opportunities for improvement. Porter’s Value Chain Analysis is a framework for understanding how value is created in an industry. Porter's Value Chain Analysis provides a systematic approach to analyzing business performance, identifying strengths and weaknesses, and making strategic improvements. It includes five steps: define the business, identify its core competencies, analyze its internal structure, determine its external environment, and assess performance.