What are support activities in the value chain?

Support activities in the value chain are essential components that enhance the efficiency and effectiveness of primary activities. Primary activities are directly involved in creating and delivering products or services, such as inbound logistics, operations, outbound logistics, marketing and sales, and service. Meanwhile, support activities provide the necessary background and infrastructure to optimize these primary processes.

Examples of support activities include procurement, technology development, human resource management, and firm infrastructure. Each of these functions plays a role in bolstering the primary activities, ensuring that they operate smoothly and can deliver value to customers. By enhancing the performance and capabilities of primary activities, support activities ultimately contribute to a company's competitive advantage and overall success.

Other options describe aspects that are related but do not capture the essence of support activities effectively. For instance, while creating market demand, focusing on customer service, and streamlining logistics are vital for competitive advantage, these are primarily concerned with direct interactions with customers or logistics processes rather than enhancing the backbone activities that facilitate these exchanges.