Course: Strategic Business Management

Please don't repost answers from other previous answered questions near similar to this one.

Review the information in Illustration Capsule 4.1 concerning Everlanes average costs of producing and selling a pair of denim jeans, and compare this with the representative value chain depicted in Figure 4.3. Then answer the following questions:

1. Which of the companys costs correspond to the primary value chain activities depicted in Figure 4.3?

2. Which of the companys costs correspond to the support activities described in Figure 4.3?

3. What value chain activities might be important in securing or maintaining Everlanes advantage? Explain your answer.

ILLUSTRATION CAPSULE 4.1 The Value Chain for Everlane, Inc. Everlane, Inc. prides itself on producing casual clothing, designed to last, in ethically managed factories, under a policy of what they call radical transparency". From the start, they have made their cost and margin breakdowns readily available on their website. Below is such a breakdown for a pair of their slim-fit denim jeans: EVERLANE Men's New Arrivals MOS Photos/Alamy Stock Photo Materials (11 oz. denim - 98% cotton; 2% elastane $12.78 Hardware (metal fasteners, trim) 2.15 Labor 7.50 Cost of Goods 22.43 Shipping 1.90 Import Duties 3.70 Total Cost 28.03 Everlane Retail Price 68.00 39.97 Everlane Profit Margin (Retail Price - Total Cost) Average Traditional Retailer's Price 140.00 Source: Everlane.com/about (accessed 2/08/20)