Porter (1985) suggests that the value chain is a system of linked activities and that it reflects the “relationships between the way one value activity is performed and the cost or performance of another” (p. 48). Linkages can lead to competitive advantage through optimization and coordination. Some linkages are stronger at creating advantage than others. The figure below shows a gradient of linkages that create competitive advantage, with industry linkages creating the most competitive advantage for a firm.

Individual activities.

Interlinked primary activities.

Interlinked secondary activities.

Industry linkages.

Briefly describe each of the linkages in the above figure. Provide an example of each of the type of linkage.

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Primary Activities Primary activities relate directly to the physical creation sale maintenance and support of a product or service They consist of th... View the full answer