1. Primary & Support Activities https://www.manager.it/default.asp?page=A_porterchain.html&folder=f_imparare

1. Competitive
Advantage

2. How a firm can
actually create
and sustain a
competitive
advantage in
its industry?

3. Two Basic Types
• Cost leadership
• Differentiation

4. Value Chain
• Identify which activities contributing to cost
leadership and differentiation
• Analyze the source of competitive
advantage

5. Value Chain

6. Primary Activities
• Inbound Logistics
Receiving, storing, and disseminating
inputs. E.g., warehousing, inventory
control
• Operations
Transforming inputs into the final
product form

7. Primary Activities
• Outbound Logistics
Collecting, storing and distributing the product to
buyers
• Marketing and Sales
Providing a means and incentive which allow
buyers to purchase the product
• Service
Providing service to enhance or maintain the
value of the product

8. Primary Activity Focus by Industry
Industry Inbound
Logistics
Operations Outbound
Logistics
Marketing
& Sales
Service
Distributor X X
Restaurant X NA
Corporate
Lending
X
Xerox X

9. Support Activities
• Procurement
Function of purchasing inputs used in the value
chain
• Technology Development

10. Support Activities
• Human Resource Management
• Firm Infrastructure
planning, finance, accounting, legal, etc.