1. Value Chain and Strategic IS :-
Value chain analysis which was developed by Michel Porter, is a technique which helps
organization to access its resources and in so doing determine its strength and possible
weaknesses. Value chain analysis looks at the activities that go to make up a product or
services with a view to ascertain how much value each activity adds.
“Hence, the value chain analysis emphasis how managers and business professionals
should try to develop a variety of strategic uses of internet and other technologies for those
basic processes that add the most value to a company’s products or services and thus to the
company.”
Value Activity :-
Primary Activity
i) Inbound Logistics : These are the activities associated with the procurement, storage and
flow of inputs to the product like material handling, warehousing, inventory control, vehicle
scheduling and return to suppliers.
ii) Operations : Activities involved to the transformation of inputs into final products.
iii) Outbound Logistics : These include activities which are associated with collection,
storage and distribution of finished goods to the customers.
iv) Marketing and Sales : Advertising, Sales promotion, sales force management, channel
selection channel relation and pricing.
v) Service : These are the activities aimed at providing services to enhance or maintain the
value of the product like installation, repair, training, supply of parts and product
adjustment.
Support Activities
i) Procurement : It includes purchase of material and service input, equipment and
machinery etc.
ii) Technology Development : Technology involved in product designing and
manufacturing processes requires activities to be performed and perfection and up
gradation.
iii) Human Resources Management : Management of human resource- training,
development, recruitment of manpower – is involved in each an every activity in value
chain.
iv) Firm Infrastructure : These are the activities which considered as a whole to provide a

2. infrastructure to the firm. They relate to general management, accounting and finance, legal
affairs, strategic planning etc.