5 core and 4 supporting elements In accordance with Porter’s concept, most types of enterprise activities that are part of the value chain are divided into primary and secondary according to their role in generating profit.
The first group includes areas 5 core and 4 supporting elements
- Inbound logistics: processes that relate c level contact list to the receipt, storage and inventory management of raw materials, components and other starting materials.
- Operations: Manufacturing processes that transform raw materials into finished products.
- Outbound logistics: processes required to resolve the distribution issues of finished products (including packaging, sorting and delivery).
- Marketing and sales: activities to promote and sell the finished product (includes advertising, cost formation strategy).
- After-sales service: activities related to supporting a product after its sale (installation, connection, training of people, quality assurance, repair and maintenance).
Ancillary activities provide support to the
main areas, ensuring their efficiency and creating competitive advantages. They are divided into the following operations:
- Procurement: processes that involve sourcing raw materials, supplies, services and equipment.
- Technological improvement: research activities, project development, product design, market niche monitoring and business process design.
- Human Resources Management: The wor Present the benefits and then justify them with features of attracting, hiring, training, developing and retaining staff.
- Infrastructure: activities related to cost and enterprise management (including those related to planning and financing).
Ancillary activities, like primary operations
participate in the value chain, but in this case they are its indirect elements. For example, competent selection and training of specialists contribute to increasing the value of the product for consumers.
Expert consultations simplify the selection process for clients and work for the company’s image. By conducting scientific research, the company’s offers will always be relevant, and consumers can receive new products.
Such activities allow us to generate resources for successful development in the occupied market segment and ensure sustainable competitive advantages.
From any type of production operations
it is possible to identify simple and unique processes (CSC links) that are characteristic only of a specific business.
In order to correctly form the target audience’s
need to purchase the company’s product, it is contact lists necessary to understand the features of Michael Porter’s value chain. This model demonstrates the competitive advantages of the enterprise’s offer and its value to the consumer. In situations where the manager does not have a clear understanding of how the company’s product satisfies the customer’s needs, its sales are carried out solely on the basis of cost. At the same time, in a competitive environment, a low price is not always the main advantage. To determine the value of the proposed product and form an effective sales strategy, it is necessary to analyze Michael Porter’s VSC model.
Typical and global value chains
The production activities and distribution processes in a company can be classified into one of two types of CSP: typical or global.
The first type of model takes into account the business activity of process participants within one enterprise or region. For example, for a small company that operates exclusively in one locality, a typical CSC should be used. The same model is used in a
