Generally, the value chains involved in providing a given product or service can be from multiple industries that can be interconnected in complex ways. One example is the auto industry where the primary consumer, the purchaser of an auto, is served by many different industries. The figure below shows five industries that support the auto purchaser directly: the manufacturer of the auto, the bank or financial institution that finances the loan for the car buyer, the insurance company, auto repair, and at some point, a company that purchases the car and resells it. The arrows show the links of service in this multiple industry value chain. The value chain for the manufacturer is shown in the center column, and the steps in the chain are shown as design, purchase of materials, purchase of components (brake systems, seats, dashboard, carpeting, etc), assembly, and delivery to the auto dealer. To the right of the figure we show one of the suppliers of components for the auto manufacturer, and auto parts manufacturer that provides brake systems. This manufacturer also requires supplies from other companies, which in turn require parts or materials from other companies. So there are two or more levels, or “tiers,” to the supply chain for the manufacturer. A thorough understanding of the value chain for the auto industry requires consideration of the full complexity of all the different suppliers and industries involved.

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Using the above figure as a guide, create a multiple-industry value chain for a boat manufacturer, including financing, repair, used sales, and partssuppliers.

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Industries that serve the auto manufacturer Industries that serve the auto customer Financing Insurance Auto Used Auto Auto Manufacturer component First level Second parts Repair Car level parts supplier Sales manufacturer supplier Product design Materials: metal, fabric Components Brake Assembly Auto retailer Parts supplier Parts supplier system Parts supplier Auto parts retailer Auto customer Purchaser of used car