The analysis of a firm's principal functions and Porter's value chain are two approaches that can be used to identify a firm's capabilities.

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Both the analysis of a firm's principal functions and Porter's value chain are commonly used approaches to identify a firm's capabilities. The analysis of principal functions involves examining the activities that a firm performs to create value for customers, while Porter's value chain breaks down a firm's activities into primary and support activities and considers how each contributes to the firm's overall value creation.

The Analysis of a Firm's Principal Functions and Porter's Value