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Introducing the value chain
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The value chain is an integral part of every business. Learn more about it in this video.
The value chain is a set of actions that a business carries out in order to create value for its customers. It includes all the business activities needed to create a product or a service from start to finish. A value chain can be divided into primary activities and support activities. The primary activities are necessary because they add value and improve the competitive advantage for a company. They include inbound logistics, operations, outbound logistics, marketing and sales, and services. The support activities make the primary activities more efficient. They include infrastructure, human resource management, technology development and procurement. Improving any of the support activities directly impacts at least one primary activity positively. Periodic value chains analysis can help a company improve its business processes. That sums up the details of the value chain. But there’s always more to learn. Keep going and keep learning!