Michael E Porter of the Harvard Business School introduced the value chain

model. This model includes all the activities which add value to the final
product starting from procurement to production, marketing, sales, and
customer service. Optimization of the value chain helps companies achieve
superior results like higher operational efficiency and minimization of wastage.
It can also help companies build new sources of competitive advantage.

There are two types of activities that are included in the value chain model.
They are the primary activities and support activities. The Primary activities are
concerned directly with the creation of the products or services whereas the
support activities are related to the primary activities and improve the
effectiveness and efficiency of the primary processes. Understanding the value
chain model of IKEA can help you learn how IKEA brings higher cost efficiency
and operational effectiveness to its business model.