ABSTRACT

The activity system links corporate strategy to supply chain processes. The methodology, from Harvard's Michael Porter, is a valuable tool for this task. Cases used include retailer IKEA and Wal‐Mart. IKEA is presented for its unique supply chain and was covered in Dr. Porter's original article in the Harvard Business Review. The Wal‐Mart case is a limited scope project to create a supply chain for staples to assure their presence on shelves. This solved a customer service problem when these staples weren't missing, an encouragement to shop elsewhere. The Wal‐Mart supply chain is used to demonstrate the importance of “fit” to create strategic advantage.