The value chain
The nine activities of Porter's value chain, primary and support, the margin, and using the chain to find where competitive advantage comes from.
- 24 cards
- 5 topics
- Free
The outline, topic by topic
Each topic is weighted the way the exam weighs it.
- Concepts
- Questions
- Sort and link
- The numbers
- Understand
A few cards from the deck
Value chain: what is it?
Show the answer
A breakdown of the company into nine activities that each create value and costs, from receiving materials to after-sales.
It lets the company be compared with its rivals activity by activity, to see where its difference lies.
Why is procurement classed among the support activities, although it deals with raw materials?
- They cover buying everything the chain consumes, not only materials
- They create no value, only costs
- They are always handed to an outside purchasing group
- They take place before any manufacturing
Show the answer
They cover buying everything the chain consumes, not only materials
Purchasing touches every activity, from factory energy to customer service software: that is what makes it a cross-cutting support. Receiving and storing goods is inbound logistics.
The five primary activities are, in order: inbound logistics, …, outbound logistics, marketing and sales, ….
Show the answer
The five primary activities are, in order: inbound logistics, operations, outbound logistics, marketing and sales, service.
The order follows the product's path. Service covers installation, maintenance, training and handling complaints.
Primary activity: what is it?
Show the answer
An activity directly involved in making, selling and servicing the product: inbound logistics, operations, outbound logistics, marketing and sales, service.
They follow the product's path, from the arrival of materials to the relationship with the customer after the sale.