I am responsible for transfer pricing for a multinational group. Following the changes to transfer pricing arising from BEPS I am hearing a lot about the need for ‘value chain analysis’. What is a value chain analysis do I need to undertake one and how do I go about doing it?
Answer
First things first what is a value chain?
A ‘value chain’ as a concept was first formulated by Michael Porter in Competitive advantage in 1985. In simple terms it is a systematic way of examining all of the activities performed by a business to determine the sources of competitive advantage and how these translate into profit.
It is really an answer to the question ‘how does...
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I am responsible for transfer pricing for a multinational group. Following the changes to transfer pricing arising from BEPS I am hearing a lot about the need for ‘value chain analysis’. What is a value chain analysis do I need to undertake one and how do I go about doing it?
Answer
First things first what is a value chain?
A ‘value chain’ as a concept was first formulated by Michael Porter in Competitive advantage in 1985. In simple terms it is a systematic way of examining all of the activities performed by a business to determine the sources of competitive advantage and how these translate into profit.
It is really an answer to the question ‘how does...
If you are not a subscriber, subscribe now to read this content.
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