2 REI operates more than 140 sporting goods and outdoor recreation stores in 36 states. How many of the
four tests of the competitive power of a resource does the retail store network pass? Explain your answer.
3 Review the information in Concepts & Connections 4.1 concerning Boll & Branch’s average costs of
producing and selling a king-sized sheet set and compare this with the representative value chain depicted in
Figure 4.1. Then answer the following questions:
a. Which of the company’s costs correspond to the primary value chain activities depicted in Figure 4.1?
b. Which of the company’s costs correspond to the support activities described in Figure 4.1?
c. What value chain activities might be important in securing or maintaining Boll & Branch’s competitive
advantage? Explain your answer.