Which of is true of activity analysis, as described in the Ghemawat-Rivkin reading? the essence of relative cost analysis involves understanding how a firm's strategic design differs in reality from its application on the ground the essence of activity analysis is understanding how the zombies are plotting to take over the world of business, one Fortune 500 company at a time pure luck (or "dumb luck" as Ghemawat-Rivkin describe it) is the primary driver of the successful arrangement of activities to achieve strategy goals the essence of relative cost analysis is that analysts typically decompose a firm's strategy into discrete activities and examine how each contributes to the firm's relative cost position or comparative willingness to pay. dumb luck is, according to Ghemawat-Rivkin, how we should think about activities analysis according to Porterthe essence of relative cost analysis involves comparing raw materials costs between the two largest firms in the industry