A Value Chain Model is a tool used by managers to identify and analyze the activities that add value and cost to their organizations. It focuses on the underlying processes and resources required to deliver a product or service to a customer. This model helps to pinpoint areas of inefficiencies and to develop plans to reduce costs and improve quality of output. It also encourages managers to explore creative ways to differentiate their organization and remain competitive in the marketplace. Value Chain Model provides a detailed picture of the resources, processes and activities of an organization to help identify new opportunities for growth.