Value Chain

It is the collection of activities within an organization that allows it to compete within an organization. The activities in a value chain can be grouped into two parts. The first is primary activities which include inbound logistics like materials handling; operations outbound logistics like distribution marketing and sales and after-sales service. The second is support activities that include human resources management, organization procurement, infrastructure, and technology development. Note that each of the primary activities involves its own support activities. By considering each activity within an organization in terms of the value chain, it is quite possible to isolate a potential source of competitive benefits.