Value chain analysis examines all business activities, from procurement of raw materials to delivery of the final product or service. It aims to maximize value for customers while minimizing total costs. The value chain framework divides activities into primary and support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are firm infrastructure, human resource management, technology development, and procurement. Understanding the value chain can help businesses identify areas for improvement and create competitive advantages.

1. Presenter: Jecoberth Kendiga
14013009

2. ①What is VALUE CHAIN
②What is Value Chain Analysis
③Why use Value Chain Analysis
④Value Chain Model
⑤Benefits

3. Is the set of activities that a business
performs in order to deliver a valuable
product or service for its customers.
VALUE CHAIN
Raw materials Final goods/services

4. ① PRIMARY ACTIVITIES
② SUPPORT ACTIVITIES

5. Value Chain analysis looks at every step a
business goes through, from raw materials
to the eventual end-user.
The goal is to deliver maximum value for
the least possible total cost (competitive
advantage).

6. helps identify the ways in which you create
value for your customers
helps you think through how you can
maximize this value: whether through superb
products, great services

7. SUPPORT
ACTIVITIES
PRIMARY ACTIVITIES
OPERATIONS
OUTBOUND
LOGISTICS
SALES &
MARKETING
SERVICE
PROCUREMENT
INBOUND
LOGISTICS
TECHNOLOGY DEVELOPEMENT
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE

8. 1. Inbound logistics - concerns with receiving,
storing and distributing the inputs used in the
production process.
2. Operations - comprise of the transformation of
inputs into final product .
3. Outbound logistics - involves collecting, storing &
distribution of the final product to consumers.
4. Sales & Marketing - Identification of customer
needs and generation of sales
5. Service – involves how to maintain the value of the
product after it is purchased

9. 1. Firm Infrastructure – refers to an organization
structure, company culture.
2. HRM - involves in recruiting, hiring, training,
development and compensation of employees
3. Technology Development - intended to improve
the product and the process, can occur in many parts
of the firm.
4. Procurement - concerned with the tasks of
purchasing inputs such as raw materials, equipment

10.  Helps company identify areas that can be
optimized for maximum efficiency and
profitably
 Helps to stay out of the “NO PROFIT ZONE”
 to create or strengthen a COMPETITIVE
ADVANTAGE