Chain Analysis Assignment: Primary and Support Activities

Value Chain Analysis
Institution
Date
Introduction
Value chain is a phenomenon used to describe the process a business take in manufacturing or offering service that emanates from inputs to outputs in order to gain competitive advantage. Value chain analysis is a sub system which entails inputs, transformation process and outputs. Acquisition of resources and transformation of those resources constitute value chain. It constitute money, labor, equipment, materials buildings, administration and management all form the process by which organization turn input into output.
Value chain activities directly affect cost of production and also affect profit. The process of converting inputs into outputs engages various activities which differ from company to company. Business engages in both primary and support activities in some forms within the course of their operation. In the following paragraphs, the paper explores the differences between primary and support activities as much as value chain analysis is concerned and further argue that it will be critical for businesses to re-evaluate global environments when dealing with value chain analysis.
A firm that has created positive value and additional total value than its competitors is said to have competitive advantage in a particular market. Customer’s satisfaction than potential substitutes, technological advancement in production, distribution sales the total cost of doing business. Sanchez and Heene (2004) view value chain activities as systematically related and present value creation. In order to gain business advantage business can either decide to apply low cost strategy by producing cheaply or differentiation through creation of superior and unique products that command premium price from customers.
Primary are activities that are involved in products physical creation. It encompasses sale and distribution of products to buyers, and also after sale service. Inbound, logistics, operations, outbound logistics, marketing and sales and service are some of the primary activities (John, Richard, Robinson, 2015). These act...