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Chaptter 9

Poorter’s valuee chainn

4.1 Porter’s value chain

Porter ddevelopedd his value chain to deetermine wwhether annd how a firrm’s activitties
contribute towardds its comppetitive advvantage.

The appproach invvolves breaaking the fiirm down into five ‘prrimary’ andd four ‘suppport’
activitiees, and theen looking at each to see if theyy give a cost advantaage or quality
advantaage.

Support activities Teechnologyy developmment
Firm infrrastructurre

Humman resourrce managgement

Procuurement M MARGIN

Inbound Operatioons Ouutbound Marketingg Servvice
logistics loggistics and saless

P Primary aactivities

Usefulnness:

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