The diagram below shows the way the value chain works. This is a highly simplified representation of a system which, in real life, is sophisticated, complex and covers many more products than the examples shown.
Value and Added Value: the Example of Silicone Sealants
Silicone sealants are a large family of products. They range from sophisticated adhesives for transport and
advanced architecture to universal applications to control water and moisture. One of these is bathroom sealants.
The diagram below shows how each stage in the value chain adds value to arrive at final products. This is a highly simplified scheme and the prices given are for illustration only. They have no bearing on actual market conditions.
*In practice two or all the different stages may be undertaken within one firm.