1. Porters Value Chain
By Katie & Katie

2. Primary Activities
Activities concerned with receiving storing and distributing inputs to the product or service
Activities that enhance or maintain the value of the product/ service
Providing awareness of the product or service enabling consumers to purchase.
Transforms theses inputs into the final product/ service
Collect store and distribute the product or service to the customer

3. Transcends all primary activities and is associated with all employees
Formal Systems involved with the structure of an organisation; Planning, finance quality control and information management.
Associated with all value added activities can be connected directly with a product or processes such as MIS
Acquiring of various resource inputs to the primary activities

4. What is the value added chain?
The value that's created and captured by a company is the profit margin:
Value Created and Captured – Cost of Creating that Value = Margin

5. Example of Porters Value Chain applied to an organisation
Amazon
Inbound logistics – receiving stock
Outbound logistics – store and distribute stock
Marketing – personalising of customer experiencing e.g. recommendations and TV advertising etc.
Services – Amazon prime is a new addition enhancing the existing experience.
Procurement – replenishes stock with a variety of suppliers
Technology – Personalise recommendations and one click ordering are Amazon initiatives
Human Resources – Great training for employees
Infrastructure – Use of most up to date systems and technology

6. Limitations of the
model

7. It has to be adapted to a particular business situation and that can be a disadvantage since, to get the best from the value chain, it’s not “plug and play”.

8. It is more suited to a manufacturing environment and can be difficult to apply to a service provider

9. The scale and scope of a value chain analysis can be intimidating
The scale and scope of a value chain analysis can be intimidating. It can take a lot of work to finish a full value chain analysis for your company and for your main competitors so that you can identify and understand the key differences and strategy drivers.

10. Sometimes a companies overall strategy and vision is lost when its operations are broken down into segments.