Chapter 3 Note:
Value-Chain Analysis: a strategic analysis of an organization that uses value-creating activities. This approach is useful for understanding the building blocks of competitive advantage.

5 Primary Activities: sequential activities of the value chain that refer to the physical creating of the product or service, tis sale and transfer to the buyer, and its service after sale, including inbound logistics, operations, outbound logistics, marketing and sales, and service.

Support Activities: activities of the value chain that either add value by themselves or add value through important relationships with both primary activities and other support activities; including procurement, technology development, human resource management, and general administration.

Primary Activities: 1. Inbound Logistics: receiving, storing, and distributing inputs of a product. It includes material handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers. 2. Operations: all activities associated with transforming inputs into the final product form such as machining, packaging, assembly, testing, printing, and facility operations. 3. Outbound Logistics: collecting, storing, and distributing the product or service to buyers. These activities included finished goods, warehousing, material handling, delivery vehicle operation, order processing, and scheduling. 4. Marketing and Sales: activities associated with purchases of products and services by end users and the inducements used to get them to make purchases. They include advertising, promotion, sales force, quoting, channel selection, channel relations, and pricing. 5. Services: actions associated with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment.

Support Activities: