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The value chain framework is made up of five primary activities -- inbound operations, operations, outbound logistics, marketing and sales, service -- and four secondary activities -- procurement and purchasing, human resource management, technological development and company infrastructure.
How to create a value chain diagram Identify all the activities in your value chain. Separate your primary and secondary activities. Label each activity to show how it creates value. Add the cost of each activity. Use the diagram to look for waste. Act on the information you discovered.
The five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and services. Support activities are firm infrastructure, HR management, technology development, and procurement.
The purpose of value-chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost.
The value chain framework is made up of five primary activities -- inbound operations, operations, outbound logistics, marketing and sales, service -- and four secondary activities -- procurement and purchasing, human resource management, technological development and company infrastructure.

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The five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and services. Support activities are firm infrastructure, HR management, technology development, and procurement.
The primary activities within Michael Porters value chain are used to provide a company with a competitive advantage in any one of the five activities so it has an advantage in the industry in which it operates.
Identify Value Chain Activities The first step in conducting a value chain analysis is to understand all of the primary and secondary activities that go into your product or services creation. If your company sells multiple products or services, its important to perform this process for each one.
Value Chain Analysis Steps Determine the business primary and support activities. Analyze the value and cost of the activities. Refer to your competitors value chains. Understand your customer bases perception of value. Identify opportunities to gain a competitive advantage.
A value chain is a progression of activities that a firm operating in a specific industry performs in order to deliver a valuable product (i.e., good and/or service) to the end customer.

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