What are the basic steps one should follow for the Value chain analysis?

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ladyvols1 eNotes educator| Certified Educator

The idea of value chain analysis was developed by Michael Porter in the 1980s in his book Competitive Advantage: Creating and Sustaining Superior Performance (Porter, 1985). The concept of value added, in the form of the value chain, can be used to develop an organisation’s competitive advantage in business.

Value chain analysis activities include the following:

Inbound logistics which include the activities concerned with receiving the materials from suppliers

Operations which mean the activities related to the production of products and services.

Outbound logistics are all the activities concerned with distributing the final product and/or service to the customers.

Marketing and sales operations are needed, which includes analyses the needs and wants of customers.

Service is usually included and this is offered to customers like pre-installation, after-sales service, or before and after the sale of the product or service.

There are also Support activities such as:
Human Resource Management
Technology Development
Firm Infrastructure

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