In the Value Chain Analysis (VCA) diagram, Support Activities can be firm infrastructure, human resource management, technology development, and procurement. As illustrated, primary activities are inbound logistics, operations, outbound logistics, marketing & sales, and service. As shown below, Value Chains help break down all the activities that produce a good or service and understand areas of cost savings and differentiation. With a value chain, one can optimize efforts, eliminate waste, and improve profitability. The way in which value chain activities are performed determines costs and affects profits, so this tool can help you understand the sources of value for your organization. The more value an organization creates, the more profitable it is likely to be. Moreover, when you provide more value to your customers, you build a competitive advantage.
