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Supply Chain Management: The Value Chain

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In general what is the importance of the value chain. (I have read article after article on this topic and they all pretty much say the same thing...can you explain it to me in some what basic terms or worded in a different way?)

Are the the primary activities more important than the secondary activities or do they compliment each other?

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This solution explains the importance of a value chain and provides one reference source for further research on the topic.

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The Importance of Value Chain

The value chain model was developed by Michael Porter and was introduced in his book, Competitive Advantage (http://www.netmba.com/strategy/value-chain/).
Value chain consists of all activities that aim to develop a company's competitive advantage and create shareholder's value. All the activities in the value chain are also called value generating activities. They are value generating because if done effectively, they would allow the company to achieve increased profits through reduced cost. These activities would contribute to the company's attainment of competitive advantage.
The activities that comprise the value chain are of two categories - primary and secondary. The primary activities are those that are directly performed in ...

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