Porter's Value Chain
Originally published: 26/02/2020 14:52
Publication number: ELQ-28372-1
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Porter's Value Chain

The Value Chain frameworks captures a series of actions that a firm executes to product a valuable product in the market

The Value Chain concept, first described by Dr. Michael Porter in 1985, captures a series of actions that a firm--in a specific industry--accomplishes to produce a valuable product or service for the market. The Value Chain notion visualizes the process view of an organization, perceiving a manufacturing or service organization as a system comprised of subsystems of inputs, transformation processes, and outputs.

This deck deliberates on the primary and secondary activities that comprise the Porter's Value Chain Model and provides a detailed account on how to implement and analyze it across industries in an effective way. These activities are defined as:

Primary Activities

1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing & sales
5. Service

Support Activities:

1. Firm infrastructure
2. Human resource management
3. Technology
4. Procurement

The 3 key phases of the Value Chain Analysis (VCA) approach include:

1. Activity Analysis - The first step involves identifying the activities required to create the product or service offering.

2. Value Analysis - Entails figuring out the tasks required under each activity to add maximum value for the customer.

3. Evaluation and Planning - Analyzing the activities, tweaking them, and devising a plan for action.

The slide deck also includes some slide templates for you to use in your own business presentations.

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