A value chain model is a pre-defined activity that is performed by a specific industry with an aim to deliver valuable services and products in the market. The concept was given by Michael Porter in his book competitive advantage in the year 1985.The model includes primary activities which are directly related to the sale, creation, maintenance, and support of a service or product. It consists of:Inbound Logistics: It relates to the process of storing, receiving, and distributing the input products. the relationship with a supplier is the main factor in creating valueOperations: It includes the transformation activities that help in converting the input into the output which is sold to the customer. The operational system of the business creates value.Outbound Logistics: The activities of outbound logistics help in delivering the products or services produced by the business to its customers. It includes activities such as storing, collecting, and distributing systems.Marketing and Sales: It is a process that helps a business to persuade its customers for purchasing the goods from you rather than your competitor. if the product offered by the business is better, then it creates value for the business.Service: It includes the activity of maintaining the value of goods or services purchased by the customer.The secondary or support activities consist of:Infrastructure: It is the support system of the company that helps a business to carry on its daily operations. Legal, accounting, administration and general management are examples of infrastructure that business uses.Procurement (Purchasing): When a business needs resources it purchases or procures them from the vendors at the best negotiable price.Human Resource Management: HRM includes recruiting, hiring, training and motivating, and retaining its employeesTechnological Development: This process includes activities that process and manage the information to protect the knowledge base of the company.Download Solution PDFShare on Whatsapp