Having worked through the content in this unit, you should now have a good understanding of the concept of vertical integration, and why some firms pursue rhis strategy while others outsource some of their activities.

Considering what you know about GAP and Xara's strategies, answer the following questions:

a$)$ What is a company's value chain $?$ Which activities do you think are typically included in the value chain of a clothing manufacturer such as Zara or Gap $?$