Michael Porter's value chain concept is a framework that breaks down a company's activities into

primary activities and support activities, all of which contribute to the creation of value for the
organization. The primary activities are directly involved in the production, marketing, delivery, and
support of a product or service. There are five primary activities in Porter's value chain framework:

1. Inbound Logistics: This activity involves receiving, storing, and distributing inputs or raw
materials that are required for the production process. It includes activities such as
procurement, inventory management, transportation, and warehousing.

2. Operations: Operations refer to the activities that transform inputs into finished products or
services. It includes activities such as machining, assembly, packaging, testing, and quality
control.

3. Outbound Logistics: This activity involves the collection, storage, and distribution of finished
products or services to customers. It includes activities such as order processing, warehousing,
packaging, and transportation.

4. Marketing and Sales: This activity involves promoting, advertising, and selling products or
services to customers. It includes activities such as market research, advertising, sales channels
management, pricing, and customer relationship management.

5. Service: The service activity focuses on providing after-sales support, customer assistance, and
maintaining ongoing customer relationships. It includes activities such as installation, repair,
training, technical support, and warranty services.

These primary activities are interconnected, and optimizing each activity can contribute to improving
overall efficiency and effectiveness, ultimately enhancing the value delivered to customers.
It's important to note that Porter's value chain framework also includes support activities, which provide
assistance to the primary activities. These support activities are:

1. Procurement: This activity involves sourcing and purchasing inputs or resources needed for the
organization. It includes activities such as supplier selection, negotiation, and contracting.

2. Technology Development: This activity focuses on research and development, process

automation, and technological advancements that support the primary activities. It includes
activities such as product design, process improvement, and innovation.

3. Human Resource Management: This activity involves managing and developing the
organization's workforce. It includes activities such as recruitment, training, performance
evaluation, and employee motivation.

4. Infrastructure: Infrastructure refers to the support systems and functions necessary for the
smooth operation of the organization. It includes activities such as general management,
planning, finance, legal, and quality management.

By analyzing and understanding these primary and support activities within the value chain,
organizations can identify areas for cost reduction, differentiation, or competitive advantage, thus
improving their overall performance.
Core competencies are the collective knowledge, skills, technologies, and resources within an
organization that provide it with a distinct competitive edge. These competencies are typically cross-
functional and can be applied across various products, services, or business units of the organization.

Core competence analysis helps organizations understand their unique strengths and leverage them
strategically, enabling them to stay competitive in the ever-evolving business landscape.

While the specific core competencies of an organization may vary depending on its industry, market, and
strategic focus, there are generally four core competencies that are often recognized as essential for
sustainable competitive advantage.

The core competencies that distinguish a company from its competitors are often unique strengths or
capabilities that provide a sustainable competitive advantage. These competencies differentiate the
company and enable it to outperform its rivals in the marketplace.

Performance analysis, also known as performance evaluation or performance assessment, is the process
of systematically examining and evaluating the performance of an individual, team, department, or
organization against predefined goals, objectives, or benchmarks. It involves gathering and analyzing
relevant data and information to assess the effectiveness, efficiency, and overall quality of performance.

The purpose of performance analysis is to gain insights into performance strengths, weaknesses, trends,
and areas for improvement. It provides a basis for informed decision-making, identifying areas of
excellence, and implementing targeted strategies to enhance performance. Performance analysis can be
conducted on various levels, including individual employee performance, team performance, project
performance, or organizational performance as a whole.

Portfolio analysis, also known as portfolio management, is a strategic management technique used to
evaluate and manage a collection of investments, projects, products, or assets collectively referred to as
a portfolio. It involves assessing the performance, risks, and strategic alignment of individual
components within the portfolio to make informed decisions and allocate resources effectively.

Portfolio analysis helps organizations optimize their portfolio by identifying the most valuable and
strategically aligned components, reallocating resources, and aligning the portfolio with the
organization's objectives and priorities.
SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and
threats of an individual, organization, or project. It provides a structured framework for assessing the
internal and external factors that can impact the success or performance of the entity being analyzed.

SWOT analysis provides a holistic view of the internal and external factors that can influence the success
of an entity. It helps in identifying strategic priorities, making informed decisions, and developing action
plans that maximize strengths, minimize weaknesses, leverage opportunities, and mitigate threats.