A company’s value chain is a system of interdependent
activities, which are connected by linkages.
Linkages exist when the way in which one activity is
performed affects the cost or effectiveness of other
activities. Linkages often create trade-offs in performing
different activities that should be optimized. This
optimization may require trade-offs. For example, a
more costly product design and more expensive raw
materials can reduce after-sale service costs. A company
must resolve such trade-offs, in accordance with
its strategy, to achieve competitive advantage.