Firm infrastructure: A company’s “corporate” functions, including executive management, accounting, and legal counsel.Porter’s support activities, which cross and back up all primary activities, include: Service: Providing assistance to the customer outside the purchase itself, from in-store help to regular maintenance.Marketing and sales: Raising awareness of the product or service, cultivating new customers, and ensuring a continuous source of revenue.Outbound logistics: Distributing the processed product to wholesalers, retail locations, and eventually end customers.
Production: Processing raw material into a final product that has a greater value than the material does on its own.Inbound logistics: Acquiring raw materials and directing them to production centers.The profit margin provides a measure of overall operational efficiency.Īccording to Porter, primary chain activities include: Each support activity bolsters and guides the primary activities.
Primary chain activities, represented by vertical segments on the bottom row, contribute directly to value creation.
tables to analyze competitors’ activities, cost allocations, differentiation opportunities, purchasing criteria, etc.The value chain is composed of three fundamental elements. slides with text placeholders to present individual production activities. value chain analysis graphics in various designs (3D, classic 2D, etc.). make use of a step-by-step introduction to performing value chain analysis. clearly present your production activities and their correlations. With the Value Chain Analysis Set for PowerPoint You Can Ready-made tables allow you to compare your value chains with those of your competitors and assign cost drivers to specific activities. You can create your own value chain quickly and easily by adding your own data to our premium-quality templates.Ī detailed analysis of specific production stages can be visualized using slides that focus on individual activities and their alignment with customers' purchasing criteria. Porter, focuses on specific activities to identify starting points for creating cost or differentiation or weak points within the chain.Ĭompanies use value chains to provide an overview of their current value activities and to optimize them by comparing them with competitors' value chains.Ī clear and structured presentation is required to analyze activities in more detail, assess their significance, and communicate them to third parties. Value chain analysis, first introduced by Michael E. While primary activities such as marketing and customer service generate direct customer benefits, support measures such as purchasing and personnel planning serve as the basis for their implementation. Value chains are linear graphics that represent all activities carried out within a production process. Value Chain Analysis: Visualize Each Stage of the Value Chain and Assess Your Competitive Advantage.
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