1. What are the primary activities and support activities of the value chain?
a. The primary activities are those that directly impact the creation of a product or service. The support activities are those that support the primary activities. Primary: inbound logistics, operations, outbound logistics, sales/marketing, and service. Support: firm infrastructure, human resources, technology development, and procurement.
2. What has been the overall impact of the Internet on industry profitability? Who has been the true winner?
a. The overall impact has been a reduction in average industry profitability. The consumer has been the true winner.
3. How does EDI work? a. EDI is the computer-to-computer exchange of business documents in a standard
electronic format between business partners.