![]() ![]() What are the disadvantages of Porter’s Value Chain? It allows you to focus on the internal part of your business without wider distractions.Clarity around how your business works helps you make strategic decisions.It can help you improve efficiency and focus, thus your margin.It produces a clear map of all key activities. ![]() The advantages to Porter’s Value Chain analysis include: What are the advantages of Porter’s Value Chain? They relate strongly to both Inbound Logistics and Operations. Procurement activities are any activities relating to the acquisition of inputs or resources for the business to operate. ![]() This activity incorporates hiring, training, developing, ensuring wellbeing, and more. HR plays such an important role in supporting the wider business and, especially these days, is becoming much more strategically important. If you’re a software business then your own product wouldn’t fall into this, but tools you use to build it would do. Relating strongly to Operations, these activities relate to any technology (be it hardware, software, tactic knowledge), required to support the transition of input to output. All of the different departments that support a business day to day. Infrastructure is a catch up for activities such as finance, quality, regulation, and general management. Secondary activities are any that support the primary in making them more effective and efficient, including: What are the Secondary Activities in Porter’s Value Chain? This one probably doesn’t need an explanation, but for consistency we’ll add one! Marketing and Sales are any activities that relate to informing the prospective customers, developing and closing pipeline, and aiding in the purchase of the products.Īctivates classed as Service are any that occur after sale and relate to keeping customers engaged, products working, churn low, or continued engagement. For businesses where the end value is a physical product, this group would include the collection, storage and disruption of the product. Outbound Logistics are the activities relating to the delivery of the product or service to the end customer. Operations are the vital processes that convert the input you receive as a business through to the valuable output that customers receive. It can include supplier relationships, physical transport of goods, talent pipelines, etc. Inbound Logistics are the relationships, processes and activities that relate to getting inputs into the business. Primary activities are those that directly develop the creation of value and competitive advantage including: What are the Primary Activities in Porter’s Value Chain? The image above is the Value Chain, a framework to list all of these activities in a single place.
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