Primary activities are directly involved in production and transferring of the product to customer and after-sale support. These activities include inbound logistics, operations, outbound logistics, sales and marketing, and service. Inbound and outbound logistics refer to material handling, warehousing, processing and distributing products. Operations are all the activities required to transform inputs into final product, in which value is added for customer through production line. Marketing and sales include informing, promoting and selling firm’s products and service to ...
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...actic and possibly the strategy can be changed by collection of statistics combines with a feedback and self-correction loop. This will result in an increase in the satisfaction of customer and the efficient organization activities.
Porter’s value chain analysis model is a useful tool for organization to identify value activities along with the way to create the value for the customers and the superior competitive advantage for organization consequently. Therefore, understanding the advantage of this analysis tool, it will help companies arrange the necessary level of resource as well as recognise the potential investment decision in order to eliminate errors and work effectively. However, this tool also requires organization constantly evaluating, updating and changing value activities to adapt with an ever-changing business environment and regulation.
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