Sport Products Company (SPC) is known for developing innovative high quality shoes for lacrosse. Its latest patented product is a tough, all-weather, and very flexible shoe. SPC buys the material it uses in making the shoes form another company, which manufactures it according to SPC’s exact specifications and quality standards. SPC makes two models of the shoe—one white and one black—in its own plant. SPC sells them through independent distributors who represent various manufacturers. When a distributor informs SPC of a sale, SPC ships the order directly to the buyer. SPC advertises the shoes in sports magazines and gives free samples to well-known lacrosse players who endorse its products. It provides a product warranty and periodically surveys users about the products’ quality.

Required

1. Briefly explain how SPC accomplishes each of the primary processes in the value chain.

2. What is a core competency? Which one of the primary processes would you say is SPC’s core competency? Explain your choice.