What role do support activities play in the value chain?

Support activities are essential components of the value chain, as they enhance the effectiveness and efficiency of the primary activities, which are the direct processes that transform inputs into outputs. These support activities typically include functions such as human resource management, procurement, and technology development. Through these functions, an organization can improve its product quality, reduce costs, or create innovations that lead to greater overall competitive advantage.

The value added by support activities is indirect but significant. For instance, effective human resource management can lead to a more skilled and motivated workforce, which can in turn improve productivity in primary activities. Similarly, advancements in technology can streamline processes and foster product improvements that resonate with customer needs. Overall, while they may not create outputs in the same direct way that primary activities do, support activities are crucial in establishing a strong foundation for success and augmenting the value delivered to customers. Thus, they enhance the overall effectiveness of the organization's operations and strategy, ensuring that primary activities can function optimally.