ITPEC FE Morning October 2019 Question 70
ITPEC FE Morning October 2019 — Question 70 of 80
Value Chain Analysis — identify which company activities create the most value.
Value chain analysis (by Michael Porter) divides a company's operations into primary activities (inbound logistics, operations, outbound logistics, marketing & sales, service) and support activities (firm infrastructure, HR, technology development, procurement). The goal is to determine which activities generate profit and competitive advantage from products/services delivered to customers.
Why not others:
- (a) 3C analysis — examines Company, Customer, and Competitor; focuses on market positioning, not internal activity breakdown
- (b) Five forces analysis — analyzes industry competition (rivals, suppliers, buyers, substitutes, new entrants), not internal processes
- (c) SWOT analysis — assesses Strengths, Weaknesses, Opportunities, Threats at a high level without separating core vs. support activities
Key rule: "core activities + support activities + profit analysis" = Value chain analysis.
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