Porter's value chain model distinguishes between primary activities and what other category?

• A. It excludes support activities
• B. It distinguishes primary activities from support activities
• C. It focuses only on suppliers
• D. It assigns all value to customers

Answer: (B)

In Porter's value chain, activities are split into primary activities and support activities. Primary activities are directly involved in delivering the product or service to customers—things like receiving and handling inputs, turning inputs into finished goods, delivering the product to customers, marketing and selling, and providing after-sales service. Support activities enable those primary activities to run—covering the firm’s infrastructure, human resource management, technology development, and procurement.

This framework distinguishes primary activities from support activities because both sets are essential: primary activities add direct value in producing and delivering the product, while support activities underpin and enable those value-adding processes. Options that suggest excluding support activities, focusing only on suppliers, or assigning all value to customers don’t reflect the model, which centers on how primary and support activities work together to create value.