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Porter’s Value Chain

Porter’s Value Chain analyses how linked primary and support activities contribute to customer value and competitive advantage. Primary activities commonly include inbound logistics, operations, outbound logistics, marketing and sales, and service; support includes infrastructure, people, technology and procurement. Examine linkages and trade-offs across the whole chain rather than cut each activity independently. The model differs from a physical supply-chain map, though relationships with suppliers and customers can be important.

Worked example

Better procurement information reduces incoming defects, production rework and after-sales claims, creating value across several linked activities.

Common mistake

The cheapest activity in isolation may raise total cost or weaken value elsewhere in the chain.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Direct September 2026–June 2027
ACCA BT Direct September 2026–June 2027
ACCA SBL Direct September 2026–June 2027
FIA FBT Direct September 2026–June 2027