What is value Chain?
1) Primary activities (5)
2) Support Activities (4)
3) Margin (1)
- PROCUREMENT
Support activity
The purchase of inputs- primary activity.
all manager- making the best decision, productivity of production and all of activity.
2.TECHNOLOGY DEVELOPMENT
Support activity.
Improve product -more competitive advantage.
To solve the complicated and difficulty.
Example:- Use the latest technology of machine in the production process.
- HUMAN RESOURCE MANAGEMENT
Support activity.
Manage, hiring and selecting worker .
Worker- fulfill the firm requirement
Manage salary, compensation, benefit & bonuses.
Responsible & concern about workers.
- INFRASTRUCTURE
Support activity.
Concern about building, road, way, parking, location and,
whatever that physical and tangible in and out premise.
- INBOUND LOGISTIC
Primary activity
Bringing material into the business
Must choose the best transportation
Cost of transportation- cost efficiency
- OPERATION
Primary activities
Converting raw material into final product
High technology- best product with high quality
Maintaining machine & training- productive.
- OUTBOUND LOGISTIC
Primary activity
Shipping out the final product
Point of origin - Point of consumption
Intermediaries- to the right place, at the right time with the lower cost.
- MARKETING ACTIVITIES
Primary activities
Include advertising, sales force administration, sales force operation.
- SERVICE
Primary activities
After sales service & on selling service- important to give value to customer
Service is intangible- give high/long term value to customer.
- MARGIN
Do the best marketing strategy
Strategy- price, distribution, place and product.
