VALUE

CHAINS
 What is Value Chain?

The interrelated operating activities

businesses perform during the process of
converting raw materials into finished goods.

Creates competitive advantage.

 What is Value Chain
Management?
Is the process of organizing the connected
group of activities that create value by
producing goods or services from basic raw
materials for purchase by a consumer.
 What is Porters Value Chain

 -A value chain is a set of activities that an organization carries

out to create value for its customers. – (Michael porter,
competitive advantage)

 -Michael porter proposed this general-purpose value chain to

examine all its activities and to see how they are connected.
 What is Value Chain Analysis
(VCA)?
It is a process where a firm identifies its
primary and support activities that add value
to its final product and then analyze these
activities to reduce costs or increase
differentiation.
 Primary Activities:
 Directly concerned in creating and delivering a product.

Inbound Logistics

Operations

Outbound Logistics

Marketing and Sales

Service
 Secondary Activities:
 Assist the primary activities in helping the organizations achieve
its competitive advantage.

Procurement

Human Resouce Management

Firm Infrastructure

Technological Development