Porter’s Value Chain

Michael Porter’s Value Chain framework dissects a business into primary and support activities, each contributing to value creation and cost structure.

• Primary Activities: Inbound logistics, operations, outbound logistics, marketing & sales, and service.

• Support Activities: Procurement, HR management, technology development, and firm infrastructure.

By mapping each function, businesses can identify areas for cost reduction and value enhancement. The value chain is essential for operational strategy and competitive advantage.