Identifies the primary activities that create customer value.

Identifies the primary activities that create customer value.

• A. Competence
• B. Benchmarking
• C. Core competence
• D. Value chain

Answer: (D)

The value chain framework identifies the sequence of activities that directly create value for customers. In this view, the primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Each step adds value by turning inputs into a deliverable product or service and by supporting the customer experience—from receiving and storing materials, through production, delivering the product, promoting it, and providing after-sales support. Supporting activities (like procurement, technology development, human resources, and firm infrastructure) enable these primary activities, but it is the primary activities themselves that are focused on creating customer value. Terms like competence or core competence refer to capabilities, while benchmarking is a comparison process; neither alone identifies the actual value-creating activities in the chain.

The value chain framework identifies the sequence of activities that directly create value for customers. In this view, the primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Each step adds value by turning inputs into a deliverable product or service and by supporting the customer experience—from receiving and storing materials, through production, delivering the product, promoting it, and providing after-sales support. Supporting activities (like procurement, technology development, human resources, and firm infrastructure) enable these primary activities, but it is the primary activities themselves that are focused on creating customer value. Terms like competence or core competence refer to capabilities, while benchmarking is a comparison process; neither alone identifies the actual value-creating activities in the chain.