The value chain model highlights specific activities in the business where competitive strategies
can best be applied and where information systems will most likely have a strategic impact. The
model identifies specific, critical leverage points where a firm can use information technology most
effectively to enhance its competitive position. The value chain model views the firm as a series of
basic activities that add a margin of value to a firm’s products or services. The activities are
categorized as either primary or support activities. Primary activities are most directly related to
production and distribution of the firm’s products and services, which create value for the
customer. Support activities make the delivery of primary activities possible and consist of
organization infrastructure. A firm’s value chain can be linked to the value chains of its suppliers,
distributors, and customers.