How to apply the value chain? Activities and Linkages

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Value Chain (Porter) > Best Practices > How to apply the value chain? Activities and Linkages

How to apply the value chain? Activities and Linkages
The value chain has two types of activities which are the primary activities and the support activities. I can remember all the elements in these two activities. However I have difficulty in applying them. Are there any linkages between these two activities? (...) Read more? Sign up for free

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Linkages are Key
The linkages are the key. Wal-Mart is a great example. Their distribution network is "inbound logistics." However, they gain great leverage by linking it to their IT capability. The linkage is the key to the model.

Value Chain Activities
V good question

Primary and Support Activities
According to Porter, the primary activities are involved in the physical creation of the product and its sale and transfer to the buyer as well as after-sale service.
The support activities support the primary activities and eachother by providing purchased inputs, technology, human resources, and various firmwide functions.
You need to disaggregate the 9 activities to the degree that is relevant for achieving the competitive advantage (differentiation or cost leadership).
Now, competitive advantage can derive from:
1. the primary activities
2. the support activities
3. the linkages among activities (internal linkages within the firm, and external or vertical linkages with others firms).

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Value Chain (Porter)
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Value Chain (Porter)
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