Value chain analysis

Value chain analysis is a great tool to know how businesses create value. Businesses create value by adding value to the raw materials and then making them worth use for the customers. There are several processes involved from the input to the output stage and mid way there can also be several participants involved. the focus of the porter's value chain is on systems and how inputs are changed into outputs before they are purchased by the customers. Porter created the value chain and divided the activities in the value chain into two categories mainly: these activities are primary and support activities.

Example banking industry value chain analysis.
Primary activities:
Inbound logistics: Processes related to raw inputs. These include receiving raw material, storage and distribution of inputs.
Operations: Activities that convert the input to output.
 Outbound logistics: Activities in the delivery of the products to the customers' doors.
Marketing and sales: Communicating the benefits of the product.
Service: Activities that follow sales like customer service and maintain the value of the product and brand.
Support Activities:
Procurement: Purchasing the resources to  continue the operations.
Human resources: Maintaining the human capital inside the organiation.
Technological development: Information technology, technological knowledge and other focus areas for technological excellence.
Infrastructure: Support systems or functions that  support production.