Such complementarities are pervasive in strategy. Although some fit among activities is generic and applies to many companies, the most valuable fit is strategy-specific. because it enhances a position's uniqueness and amplifies trade-offs. There are three types of fit, although they are not mutually exclusive. First-order fit is simple consistency between each activity (function) and the overall strategy. Vanguard, for example, aligns al] activities with its low-cost strategy. It minimizes portfolio turnover and does not need highly compensated money managers. The company distributes its funds directly, avoiding commissions to brokers. It also limits advertising, relying instead on public relations and word-of-mouth recommendations. Vanguard ties its employees' bonuses to cost savings.