Value Chain Analysis

Michael Porter's value chain analysis views a firm as a series of business processes that each add value to the product or service. This activity is important because value chain analysis is a useful tool for determining how to create the greatest possible value for customers. The value chain groups a firm's activities into two categories$-$primary value activities and support value activities.

The goal of this activity is to test your understanding of what constitutes a primary value or a support value activity.

Instructions: For each item below, select whether it represents a primary value activity or a support value activity.

Service after the sale

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Technology development

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Receive and store raw materials

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Market and sell the product or service

Firm infrastructure

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Procurement

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Make the product or service

Human resource management

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Deliver the product or service

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