Essay on The Components of a Value Chain

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Essay on The Components of a Value Chain

Value Chain Components

Porter divides a company’s operations into two groups: “main” and “support,” with examples of each shown below.

Primary Activities

Primary activities include five components, all of which are required for producing value and establishing a competitive advantage:

  • Inbound logistics comprises collecting, inventory management, and warehousing.
  • The steps for changing raw resources to a final product in this operation phase.
  • Outbound logistics refers to the procedures for delivering a completed product to a consumer.
  • Advertising, promotion, and pricing are all techniques used in marketing and sales to increase exposure and target the right customers.
  • Customer service, maintenance, repair, refund, and service programs like exchange keep things moving smoothly and improve the client experience.

The goal of support activities is to make primary activities more efficient. When any of the four support activities become more efficient, at least one of the five primary activities benefits.


These support operations are considered overhead costs in numerous organization’s revenue statements

  • Procurement is the process through which a business obtains raw materials.
  • During the research and development (R&D) phase of an organization, technological development is applied to form and generate production steps and guidelines as well as automate operations.
  • Human resources (HR) management includes hiring and keeping workers who will assist create, promoting, and selling the product in accordance with the company’s business plan.
  • Company systems and the makeup of its management teams, such as planning, accounting, finance, and quality control, are examples of infrastructure.

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