Primary activities in the value chain create value, whereas support activities in the value chain generate costs.

Question

Quizplus · Accepted Answer

Both primary and support activities in the value chain can create value for the company, and both can also generate costs. Primary activities include activities directly related to the creation and delivery of the product or service, such as production, marketing, and sales. Support activities include activities that facilitate the primary activities, such as human resources, procurement, and technology development. Both types of activities are necessary for the company to operate and create value.

Primary Activities in the Value Chain Create Value, Whereas Support