Assessing the Support Activities in the Value Chain
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The support activities can therefore be divided into procurement, technology development (R&D), human resource management and firm infrastructure.
Step 1: Identify all value chain activities. Step 2: Calculate each value chain activity's cost. Step 3: Look at what your customers perceive as value. Step 4: Look at your competitors' value chains. Step 5: Decide on a competitive advantage.
Porter's value chain involves five primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are illustrated in a vertical column over all of the primary activities. These are procurement, human resources, technology development, and firm infrastructure.
Porter's value chain involves five primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are illustrated in a vertical column over all of the primary activities. These are procurement, human resources, technology development, and firm infrastructure.
Step 1: Identify all value chain activities. Step 2: Calculate each value chain activity's cost. Step 3: Look at what your customers perceive as value. Step 4: Look at your competitors' value chains. Step 5: Decide on a competitive advantage.
Value Chain Analysis is a three-step process: Activity Analysis: First, you identify the activities you undertake to deliver your product or service. Value Analysis: Second, for each activity, you think through what you would do to add the greatest value for your customer.
The primary activities of the value chain include inbound logistics, operation outbound logistics, marketing and sales, and service. Secondary activities or the support activities include firm infrastructure, human resources management, and procurement.
Value chain analysis is based on the principle that organisations exist to create value for their customers.The organisation can more effectively evaluate its internal capabilities by identifying and examining each of these activities. Each value adding activity is considered to be a source of competitive advantage.
Supporting activities are those actions taken by a nonprofit organization other than program services. Supporting activities typically include fundraising activities, management and general activities, and membership development activities.