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Value Chain Model: Which Activities Directly Support Value Creation in the Value Chain Model?

By: Author Alex Lim

Posted on

Categories Lean Enterprise Framework

Discover the key activities that directly support value creation in the value chain model, including inbound logistics, operations, outbound logistics, marketing, and servicing. Learn how these activities drive competitive advantage.

Table of Contents

Question

Which activities directly support value creation in the value chain model? (Select one best answer)

A. Inbound logistics, operations, outbound logistics
B. Procurement, technology development, human resource management
C. Marketing and sales, servicing
D. Inbound logistics, operations, outbound logistics, marketing and sales, servicing

Answer

D. Inbound logistics, operations, outbound logistics, marketing and sales, servicing

Explanation

In Michael Porter’s value chain model, primary activities are those that directly contribute to the creation and delivery of a product or service. These activities are essential for adding value and creating a competitive advantage for businesses. The five primary activities include:

  1. Inbound Logistics: Managing the receipt, storage, and distribution of inputs such as raw materials from suppliers.
  2. Operations: Transforming inputs into finished products or services through manufacturing or other processes.
  3. Outbound Logistics: Handling the storage, packaging, and delivery of finished products to customers.
  4. Marketing and Sales: Promoting products or services to attract customers and drive sales through advertising, pricing strategies, and market research.
  5. Servicing: Providing after-sales support such as maintenance, repairs, warranties, and customer service to enhance customer satisfaction and loyalty.

These activities collectively form the backbone of value creation in any organization by ensuring efficient production, delivery, promotion, and customer support.

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