What distinguishes primary activities from support activities in a value chain?

The distinction between primary activities and support activities in a value chain is fundamental to understanding how organizations create value. Primary activities are directly involved in the production and delivery of products and services. These activities include processes like inbound logistics, operations, outbound logistics, marketing and sales, and service. Each of these contributes directly to the final creation of value for customers.

For instance, inbound logistics encompasses the receiving, warehousing, and inventory management of raw materials, while operations cover the processes that transform inputs into final products. This clear connection between primary activities and value creation is what sets them apart from support activities.

Support activities, on the other hand, enable and enhance the efficiency of primary activities but do not create value directly. They include functions like human resources, technology development, and procurement, which provide necessary support for primary activities to run smoothly. While these support functions are essential for the success of the business, they do not directly engage in the value-creating actions that customers experience.

Thus, the correct choice highlights that primary activities are fundamentally about creating value in the context of a value chain, establishing them as a pivotal element in the overall business strategy.