The first group includes areas that are directly related to product creation:
Inbound logistics: processes that usa phone list relate to the receipt, storage and inventory management of raw materials, components and other inputs.
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).
Elements of the value chain
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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 work 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 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.