Provide after sale service and support Primary activities Provide after sale service and support Manufacture product or create service Design Deliver Purchase materials and supplies Market and sell Identify customers Support activities Finance and administration Human resources Technology development

Sawmill converse logs to lumber Logger cuts down tree Sawmill converse logs to lumber Lumberyard (distributor) provides lumber furniture factory manufactures/assembles Furniture retailer markets and sells furniture Consumer purchases and uses furniture disposes of furniture which is recycled

Strengths Weaknesses Opportunities Threats sell directly to consumers keep costs below competitor’s costs Weaknesses No strong relationships with computer dealers Opportunities Consumers know what they want to buy Internet could be a powerful marketing tool Threats Competitors have stronger brand names Competitors have strong relationships with computer dealers

Supply Chain The Milk Processing Unit Unprocessed milk Packaged milk Supplier of unprocessed milk Processing Facility Packaging Distributors Stores Customers Lumber Company Corrugate Paper Co. Boxes paperboard Label manufacturing Labels

Cost leadership Differentiation Focus