Porter's Value Chain

NotesQuizObjective TestMock

Porter’s value chain reflects the importance of:

Adding value at all stages in the supply chain, from the first supplier in the chain to the end user or customer.

It looks at the primary and supporting/secondary activities of what a company does internally.

Primary activities include:

  1. Inbound logistics

  2. Operations - This includes producing the product.

  3. Outbound logistics - This involves delivering the product to the customers.

  4. Marketing and sales

  5. After sales services

Supporting/Secondary activities include:

  1. Procurement - This involves negotiating with suppliers to buy the raw materials.

  2. Human resources

  3. Firm Infrastructure

  4. Technology development

NotesQuizObjective TestMock