Primary activities (Porter’s value chain)
Primary activities in Porter’s value chain concern creating, delivering, selling and supporting the offering. The standard categories are inbound logistics, operations, outbound logistics, marketing and sales, and service. The framework is adapted to the organisation’s actual activities, including services. Primary does not mean every cost is a direct production cost or that support activities create no value.
Worked example
A producer receives inputs, makes equipment, delivers it, markets it and provides installation support. Marketing and sales are primary activities in this framework even when their costs are not treated as manufacturing product costs.
Common mistake
Classifying marketing as a support activity or equating primary value-chain activities with the primary economic sector.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |
