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STRATEGIC COST
STRATEGIC COST
STRATEGIC COST
o
st
Cu
SUPPORT
ACTIVITIES
r
me
Va
gi
lue
ar
M
Technology Development
Va
Service and
Support
Sales &
Marketing
Cu
s
to
me
Outbound
Logistics
ar
gin
Ops.
Inbound
Logistics
lue
Procurement
PRIMARY ACTIVITIES
STRATEGIC COST
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
STRATEGIC COST
Support Activities
Human resources
(general and admin.)
Tech. development
Procurement
Distinctive capabilities
Cost advantages
Some examples
Southwest Airlines
Intel Corporation
STRATEGIC COST
STRATEGIC COST
$ (cost advantage)
CC (core competency)
STRATEGIC COST
outsourcing
off-shoring
co-location with customers or suppliers
redesign for efficiency
STRATEGIC COST
Technical:
Behavioral:
Cultural
STRATEGIC COST