Service activities are those that maintain and enhance, the product’s value including customer support, repair services, etc. It means everything on the side, that helps run your business but actually isn”t related to your product.
The primary value chain activities described above are facilitated by support activities. Porter identified four generic categories of support activities, the details of which are industry specific. In Porter’s value chains, Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, and Service are categorized as primary activities.
- Procurement – the function of purchasing the raw materials and other inputs used in the value-creating activities.
- Technology Development – includes research and development, process automation, and other technology development used to support value chain activities.
- Human Resource Management – the activities associated with recruiting, development, and compensation of employees.
- Firm Infrastructure – includes activities such as finance, legal, quality management etc.
The goal of these activities is to create value that exceeds the cost of providing the product service, thus generating a profit margin.