Yes. Of Course. Yes!!!
First, link building is aimed at improving Pagerank and ranking, as this is defined by the initial Google algorithm. Search engine results pages however do not show results based just on Pagerank, but on Relevancy. Naturally, high pagerank however does not imply a high degree of relevancy but it certainly helps to a certain degree.
Second, there are regulated business sectors for example books, shoes, school supplies and auto industries where directly/indirectly things such as Adwords/PayPerClick, PR, Link Building, etc are not allowed. So, sometimes lack of link building is actually part of the requirements in a way. But that does not mean that a website cannot do well without link building. On the contrary…
A relevant example which you might find useful is one of generic keyword, which you can find very easily if you search for http://www.google.co.uk/search?q=home where no link building has taken place, yet the website is performing really well and has produced great results.
Having said that though, SEO without link building means that you are most likely going deeper into coding, design, application performance and other aspects of an online presence which means that SEO begins to come closer to the Technical side of a site and from the Marketing side.
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