What is Value Chain? Example of Indian Tobacco Company (ITC)
What is the Value Chain?
The value chain is a tool for identifying ways to create more customers.
As per these model every firm is the combination of activities performed to design, deliver, produce, market and support its product.
There are Nine such activities among five are primary and four supportive activities that create value and cost in specific business.
The primary are
1. Inbound logistics or bringing materials into the business.
2. Operations or converting materials into final products.
3. Outbound logistics or shipping out final products.
4. Marketing which includes sales
5. Services includes supportive activities or specialised department
• Procurement
• Technology department
• Human Resource Management
• Firm infrastructure it cover cost of
Planning
General Management
Financing
Accounting
Legal and government affairs