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6.docx - Porter’s Value Chain Michael Porter created a...

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Porter’s Value ChainMichael Porter created a general chart showing how businesses create value for theircustomers. It is a useful tool to identify the specific activities of a company, showing whichones are performing well and which ones are not. It aids in the analysis of how to add morevalue and create a better competitive advantage. (Expert Program Management, 2021)The analysis starts with the understanding that every business follows the input–process–output flow. The diagram shows that businesses procure materials (input), thentransform the materials which generates costs (process), and once it is processed it forms anoutputwhich is the margin created from the activities. Porter divided the business activitiesinto two – Primary and Support. The primary activities start with theinbound logisticswhichis the process of orchestrating the receipt and storage of the materials procured. Thesematerials will then move tooperationswhich will process these into the desired outputwhich will be delivered to the customers through theoutbound logistics. Once the output isdelivered to the market, the business must make sure that customers are aware of theproduct/service through the process ofmarketing. Lastly,serviceis the process of retainingor growing market share, making sure that the customers are satisfied through customerservice. (Expert Program Management, 2021)The design of the diagram shows how the support activities encompass all theprimary activities. The broken lines signify that the three support activities which are HumanResource Management, Technology Development, and Procurement are linked to a specificprimary activity while the fourth support activity which is firm infrastructure supports all theactivities of the business. (Expert Program Management, 2021)The Porter’s Value Chain is a useful business model as it shows the divisions of the

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Term
Fall
Professor
professor_unknown
Tags
Management, Marketing, Aritzia Inc, Expert Program Management

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