Todd Wallace works as the chief knowledge officer for Pennsylvania Lumbar Company. He has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Todd determines that the best value he can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Todd adding value?

Question

Nikolai Ruiz

Business

31 December, 07:52

Todd Wallace works as the chief knowledge officer for Pennsylvania Lumbar Company. He has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Todd determines that the best value he can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Todd adding value?

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Answers (1)

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Natalee Terry · Answer 1

A. The primary value activity outbound logistics

Explanation:

This question is answered correctly based on primary activities found in Michael Porter's value chain. The correct answer in this case is outbound logistics which involve activities related to distribution of the final good or service to a consumer. Examples include product's timely delivery (shipping), distribution and storage. This next day delivery creates convenience by fulfilling urgency needs after an order has been placed hence adding value to customers.