VALUE CHAIN ANALYSIS : An Overview By: Dr. Rizalito L. Gregorio UNIVERSITY OF THE PHILIPPINES

VALUE CHAIN ANALYSIS :VALUE CHAIN ANALYSIS :An OverviewAn Overview

By:By:

Dr. Rizalito L. GregorioDr. Rizalito L. Gregorio

UNIVERSITY OF THE PHILIPPINESUNIVERSITY OF THE PHILIPPINES

THE VALUE CHAINTHE VALUE CHAIN

A TOOL DEVELOPED BY A TOOL DEVELOPED BY

DR. MICHAEL PORTER OF DR. MICHAEL PORTER OF

HARVARD BUSINESS SCHOOLHARVARD BUSINESS SCHOOL

THE VALUE CHAINTHE VALUE CHAIN

CAN BE USED TO EXAMINE THE VARIOUS CAN BE USED TO EXAMINE THE VARIOUS ACTIVITIES OF THE FIRM AND HOW THEY ACTIVITIES OF THE FIRM AND HOW THEY INTERACT IN ORDER TO PROVIDE A INTERACT IN ORDER TO PROVIDE A SOURCE OF COMPETITIVE ADVANTAGE BY:SOURCE OF COMPETITIVE ADVANTAGE BY:

- PERFORMING THESE ACTIVITIES BETTER - PERFORMING THESE ACTIVITIES BETTER

OROR - AT A LOWER COST THAN THE COMPET-- AT A LOWER COST THAN THE COMPET- ITORSITORS

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FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

INBOUND LOGISTICS

OPER-ATIONS

OUTBOUND LOGISTICS

MARKET-ING

& SALES

SERVICE

PRIMARY ACTIVITIES

SUP-PORT

ACTIV-ITIES

THE GENERIC VALUE CHAIN

TYPES OF FIRM TYPES OF FIRM ACTIVITIESACTIVITIES

1. PRIMARY1. PRIMARY

- THOSE THAT ARE INVOLVED IN - THOSE THAT ARE INVOLVED IN THE CREATION, SALE AND THE CREATION, SALE AND TRANSFER OF PRODUCTS TRANSFER OF PRODUCTS (INCLUDING AFTER-SALES (INCLUDING AFTER-SALES SERVICE) SERVICE)

TYPES OF FIRM TYPES OF FIRM ACTIVITIESACTIVITIES

2. SUPPORT2. SUPPORT

- THOSE THAT MERELY SUPPORT - THOSE THAT MERELY SUPPORT THE PRIMARY ACTIVITIESTHE PRIMARY ACTIVITIES

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FIRM INFRASTRUCTURE



PROCUREMENT

INBOUND LOGISTICS

OPER-ATIONS

OUTBOUND LOGISTICS

MARKET-ING

& SALES

SERVICE

PRIMARY ACTIVITIES

SUP-PORT

ACTIV-ITIES


PRIMARY ACTIVITIESPRIMARY ACTIVITIES

1. INBOUND LOGISTICS1. INBOUND LOGISTICS - CONCERNED WITH RECEIVING, - CONCERNED WITH RECEIVING,

STORING, DISTRIBUTING INPUTSSTORING, DISTRIBUTING INPUTS (e.g. HANDLING OF RAW (e.g. HANDLING OF RAW

MATERIALS, WAREHOUSING, MATERIALS, WAREHOUSING, INVENTORY CONTROL) INVENTORY CONTROL)


2. OPERATIONS2. OPERATIONS

- COMPRISE THE TRANSFORMATION - COMPRISE THE TRANSFORMATION OF THE INPUTS INTO THE FINAL OF THE INPUTS INTO THE FINAL PRODUCT FORM (E.G. PRODUCT FORM (E.G. PRODUCTION, ASSEMBLY, AND PRODUCTION, ASSEMBLY, AND PACKAGING) PACKAGING)


3. OUTBOUND LOGISTICS3. OUTBOUND LOGISTICS

- INVOLVE THE COLLECTING, - INVOLVE THE COLLECTING, STORING, AND DISTRISTORING, AND DISTRI BUTING THE BUTING THE PRODUCT TO THE BUYERS PRODUCT TO THE BUYERS

(e.g. PROCESSING OF ORDERS, (e.g. PROCESSING OF ORDERS, WAREHOUSING OF FINISHED GOODS, WAREHOUSING OF FINISHED GOODS, AND DELIVERY) AND DELIVERY)


4. MARKETING AND SALES4. MARKETING AND SALES

- HOW BUYERS CAN BE - HOW BUYERS CAN BE CONVINCED TO PURCHASE THE CONVINCED TO PURCHASE THE PRODUCT PRODUCT

(e.g. ADVERTISING, PROMOTION, (e.g. ADVERTISING, PROMOTION, DISTRIBUTION)DISTRIBUTION)


5. SERVICE 5. SERVICE

– INVOLVES HOW TO MAINTAIN THE INVOLVES HOW TO MAINTAIN THE VALUE OF THE PRODUCT AFTER IT VALUE OF THE PRODUCT AFTER IT IS PURCHASED IS PURCHASED

(e.g. INSTALLATION, REPAIR, (e.g. INSTALLATION, REPAIR, MAINTENANCE, AND TRAINING)MAINTENANCE, AND TRAINING)

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FIRM INFRASTRUCTURE



PROCUREMENT

INBOUND LOGISTICS

OPER-ATIONS

OUTBOUND LOGISTICS

MARKET-ING

& SALES

SERVICE

PRIMARY ACTIVITIES

SUP-PORT

ACTIV-ITIES


SUPPORT ACTIVITIESSUPPORT ACTIVITIES

1. PROCUREMENT1. PROCUREMENT

-CONCERNED WITH THE TASKS OF -CONCERNED WITH THE TASKS OF PURCHASING INPUTS SUCH AS PURCHASING INPUTS SUCH AS RAW MATERIALS, EQUIPMENT, RAW MATERIALS, EQUIPMENT, AND EVEN LABORAND EVEN LABOR


2. TECHNOLOGY DEVELOPMENT 2. TECHNOLOGY DEVELOPMENT

– THESE ACTIVITIES ARE INTENDED TO THESE ACTIVITIES ARE INTENDED TO IMPROVE THE PRODUCT AND THE IMPROVE THE PRODUCT AND THE PROCESS, PROCESS,

– CAN OCCUR IN MANY PARTS OF THE CAN OCCUR IN MANY PARTS OF THE FIRMFIRM


3. HUMAN RESOURCE 3. HUMAN RESOURCE MANAGEMENT MANAGEMENT

– – INVOLVED IN RECRUITING, INVOLVED IN RECRUITING,

HIRING, TRAINING,HIRING, TRAINING,DEVELOPMENTDEVELOPMENT

AND COMPENSATIONAND COMPENSATION


4. FIRM INFRASTRUCTURE4. FIRM INFRASTRUCTURE

- THE ACTIVITIES WHICH ARE NOT - THE ACTIVITIES WHICH ARE NOT SPECIFIC TO ANY ACTIVITY AREA SUCH SPECIFIC TO ANY ACTIVITY AREA SUCH AS GENERAL MANAGEMENT, AS GENERAL MANAGEMENT, PLANNING, FINANCE, AND PLANNING, FINANCE, AND ACCOUNTING ARE CATEGORIZED ACCOUNTING ARE CATEGORIZED UNDER FIRM INFRASTRUCTURE.UNDER FIRM INFRASTRUCTURE.

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FIRM INFRASTRUCTURE



PROCUREMENT

INBOUND LOGISTICS

OPER-ATIONS

OUTBOUND LOGISTICS

MARKET-ING

& SALES

SERVICE

PRIMARY ACTIVITIES

SUP-PORT

ACTIV-ITIES


USES OF VALUE USES OF VALUE CHAIN ANALYSISCHAIN ANALYSIS

THE SOURCES OF THE THE SOURCES OF THE COMPETITIVE ADVANTAGE OF A COMPETITIVE ADVANTAGE OF A FIRM CAN BE SEEN FROM ITS FIRM CAN BE SEEN FROM ITS DISCRETE ACTIVITIES AND HOW DISCRETE ACTIVITIES AND HOW THEY INTERACT WITH ONE THEY INTERACT WITH ONE ANOTHER. ANOTHER.


THE VALUE CHAIN IS A TOOL FOR THE VALUE CHAIN IS A TOOL FOR SYSTEMATICALLY SYSTEMATICALLY EXAMINING THE EXAMINING THE ACTIVITIES OF A FIRM AND HOW ACTIVITIES OF A FIRM AND HOW THEY INTERACT WITH ONE THEY INTERACT WITH ONE ANOTHERANOTHER AND AFFECT EACH AND AFFECT EACH OTHER’S COST AND OTHER’S COST AND PERFORMANCE. PERFORMANCE.


A FIRM GAINS A COMPETITIVE A FIRM GAINS A COMPETITIVE ADVANTAGE BY PERFORMING ADVANTAGE BY PERFORMING THESE ACTIVITIES BETTER OR AT THESE ACTIVITIES BETTER OR AT LOWER COST THAN LOWER COST THAN COMPETITORS.COMPETITORS.

VALUEVALUE

THE THE VALUEVALUE IS THE TOTAL AMOUNT (i.e. IS THE TOTAL AMOUNT (i.e. TOTAL REVENUE) THAT BUYERS ARE TOTAL REVENUE) THAT BUYERS ARE WILLING TO PAY FOR A FIRM’S WILLING TO PAY FOR A FIRM’S PRODUCTS. PRODUCTS.

THE DIFFERENCE BETWEEN THE TOTAL THE DIFFERENCE BETWEEN THE TOTAL VALUE (OR REVENUE) AND THE TOTAL VALUE (OR REVENUE) AND THE TOTAL COST OF PERFORMING ALL OF THE FIRM’S COST OF PERFORMING ALL OF THE FIRM’S ACTIVITIES PROVIDES THE MARGIN ACTIVITIES PROVIDES THE MARGIN

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FIRM INFRASTRUCTURE



PROCUREMENT

INBOUND LOGISTICS

OPER-ATIONS

OUTBOUND LOGISTICS

MARKET-ING

& SALES

SERVICE

PRIMARY ACTIVITIES

SUP-PORT

ACTIV-ITIES


VALUE ACTIVITIESVALUE ACTIVITIES

THOSE ACTIVITIES THAT ARE THOSE ACTIVITIES THAT ARE DISTINCT BOTH PHYSICALLY AND DISTINCT BOTH PHYSICALLY AND TECHNOLOGICALLY TECHNOLOGICALLY


SOME ACTIVITIES ARE MORE VITAL SOME ACTIVITIES ARE MORE VITAL THAN OTHERS DEPENDING UPON THE THAN OTHERS DEPENDING UPON THE INDUSTRY. INDUSTRY.

FOR INSTANCE, MARKETING ACTIVITIES FOR INSTANCE, MARKETING ACTIVITIES WOULD BE MORE VITAL IN A VERY WOULD BE MORE VITAL IN A VERY COMPETITIVE CONSUMER GOODS COMPETITIVE CONSUMER GOODS INDUSTRY THAN IN A TELEPHONE INDUSTRY THAN IN A TELEPHONE MONOPOLY. MONOPOLY.


SOME ACTIVITIES ARE DIRECT IN SOME ACTIVITIES ARE DIRECT IN THE SENSE THAT THEY ARE THE SENSE THAT THEY ARE DIRECTLY INVOLVED IN CREATING DIRECTLY INVOLVED IN CREATING VALUE FOR THE BUYER. VALUE FOR THE BUYER.


SOME ACTIVITIES ARE INDIRECT SOME ACTIVITIES ARE INDIRECT AND ARE INVOLVED ONLY IN AND ARE INVOLVED ONLY IN MAKING IT POSSIBLE TO MAKING IT POSSIBLE TO PERFORM THE DIRECT ACTIVITIES PERFORM THE DIRECT ACTIVITIES ON A CONTINUING BASIS ON A CONTINUING BASIS

(e.g. MAINTENANCE, (e.g. MAINTENANCE, SCHEDULING, OPERATION OF SCHEDULING, OPERATION OF FACILITIES, RECORD KEEPING). FACILITIES, RECORD KEEPING).


SOME ACTIVITIES ARE PRIMARILY SOME ACTIVITIES ARE PRIMARILY INVOLVED IN QUALITY INVOLVED IN QUALITY ASSURANCE AND ARE INVOLVED ASSURANCE AND ARE INVOLVED MAINLY IN ENSURING THE MAINLY IN ENSURING THE QUALITY OF OTHER ACTIVITIES QUALITY OF OTHER ACTIVITIES

(e.g. MONITORING, INSPECTING, (e.g. MONITORING, INSPECTING, TESTING, ETC.) TESTING, ETC.)


EVERY ACTIVITY THAT IS DONE BY EVERY ACTIVITY THAT IS DONE BY A FIRM NEEDS TO BE CAPTURED A FIRM NEEDS TO BE CAPTURED IN A PRIMARY OR SUPPORT IN A PRIMARY OR SUPPORT ACTIVITY.ACTIVITY.


THE ACTIVITIES WITH DISCRETE THE ACTIVITIES WITH DISCRETE TECHNOLOGIES AND ECONOMICS TECHNOLOGIES AND ECONOMICS SHOULD BE ISOLATED. SHOULD BE ISOLATED.


THE VALUE LABELS ARE ARBITRARY THE VALUE LABELS ARE ARBITRARY AND THEY SHOULD BE CHOSEN IN AND THEY SHOULD BE CHOSEN IN ORDER TO PROVIDE THE BEST INSIGHT ORDER TO PROVIDE THE BEST INSIGHT INTO THE BUSINESS. INTO THE BUSINESS.

IT IS ADVISABLE TO ASSIGN THE IT IS ADVISABLE TO ASSIGN THE VALUE ACTIVITIES TO CATEGORIES VALUE ACTIVITIES TO CATEGORIES THAT BEST REPRESENT THEIR THAT BEST REPRESENT THEIR CONTRIBUTION TO A FIRM’S CONTRIBUTION TO A FIRM’S COMPETITIVE ADVANTAGE.COMPETITIVE ADVANTAGE.


AN ACTIVITY CAN BE SEPARATED FROM AN ACTIVITY CAN BE SEPARATED FROM OTHER ACTIVITIES IF IT HAS ANY OF OTHER ACTIVITIES IF IT HAS ANY OF THE FOLLOWING CHARACTERISTICS; THE FOLLOWING CHARACTERISTICS;

A) HAS A DIFFERENT ECONOMICS A) HAS A DIFFERENT ECONOMICS COMPARED TO THE OTHERSCOMPARED TO THE OTHERS B) HAS A HIGH POTENTIAL IMPACT OF B) HAS A HIGH POTENTIAL IMPACT OF DIFFERENTIATION AND, DIFFERENTIATION AND, C) REPRESENTS A SIGNIFICANT OR C) REPRESENTS A SIGNIFICANT OR GROWING PROPORTION OF THE GROWING PROPORTION OF THE

COST COST OF PRODUCTION OR OPERATION. OF PRODUCTION OR OPERATION.


SOME ACTIVITIES SHOULD BE SOME ACTIVITIES SHOULD BE COMBINED IF THEY ARE NOT COMBINED IF THEY ARE NOT IMPORTANT TO COMPETITIVE IMPORTANT TO COMPETITIVE ADVANTAGE OF THE FIRM OR IF ADVANTAGE OF THE FIRM OR IF THEIR ECONOMICS ARE SIMILAR THEIR ECONOMICS ARE SIMILAR TO THE OTHER ACTIVITIES.TO THE OTHER ACTIVITIES.

ANALYZING THE CHAINANALYZING THE CHAIN

COVER THE ENTIRE COST COVER THE ENTIRE COST STRUCTURE OF THE COMPANYSTRUCTURE OF THE COMPANY

ANALYZING THE CHAINANALYZING THE CHAIN

BE SURE TO INCLUDE THE SUB-BE SURE TO INCLUDE THE SUB-CONTRACTED OR OUTSOURCED CONTRACTED OR OUTSOURCED PORTIONSPORTIONS

LINKAGES WITHIN LINKAGES WITHIN THE VALUE CHAINTHE VALUE CHAIN

NOT JUST A COMPILATION OF NOT JUST A COMPILATION OF ACTIVITIES THAT ARE INDEPENDENT OF ACTIVITIES THAT ARE INDEPENDENT OF EACH OTHER;EACH OTHER;

INSTEAD, IT IS A SYSTEM OF ACTIVITIES INSTEAD, IT IS A SYSTEM OF ACTIVITIES THAT ARE INTERDEPENDENT BECAUSE THAT ARE INTERDEPENDENT BECAUSE THEY ARE RELATED BY THEIR THEY ARE RELATED BY THEIR LINKAGES.LINKAGES.

THROUGH THE LINKAGES, THE THROUGH THE LINKAGES, THE PERFORMANCE OF ONE ACTIVITY PERFORMANCE OF ONE ACTIVITY AFFECTS THE COST OR PERFORMANCE AFFECTS THE COST OR PERFORMANCE OF ANOTHER.OF ANOTHER.


THESE LINKAGES BETWEEN THE THESE LINKAGES BETWEEN THE ACTIVITIES SUGGEST THAT THE COST ACTIVITIES SUGGEST THAT THE COST ADVANTAGE OR THE DIFFERENTIATION ADVANTAGE OR THE DIFFERENTIATION OF A FIRM WOULD DEPEND NOT JUST OF A FIRM WOULD DEPEND NOT JUST ON THE COST REDUCTION OR ON THE COST REDUCTION OR PERFORMANCE IMPROVEMENT OF AN PERFORMANCE IMPROVEMENT OF AN INDIVIDUAL ACTIVITY. INDIVIDUAL ACTIVITY.

DO NOT JUST LOOK AT EACH ACTIVITY DO NOT JUST LOOK AT EACH ACTIVITY INDEPENDENTLYINDEPENDENTLY


THE LINKAGES BETWEEN THE THE LINKAGES BETWEEN THE ACTIVITIES CAN BE IDENTIFIED BY ACTIVITIES CAN BE IDENTIFIED BY SEARCHING FOR WAYS IN WHICH EACH SEARCHING FOR WAYS IN WHICH EACH VALUE ACTIVITY AFFECTS OR IS VALUE ACTIVITY AFFECTS OR IS AFFECTED BY OTHERS.AFFECTED BY OTHERS.

OPTIMIZATION AND COORDINATION OPTIMIZATION AND COORDINATION BETWEEN THE VARIOUS ACTIVITIES OF BETWEEN THE VARIOUS ACTIVITIES OF THE FIRM CAN BE ACHIEVED BY THE FIRM CAN BE ACHIEVED BY EXPLOITING THESE LINKAGES.EXPLOITING THESE LINKAGES.

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FIRM INFRASTRUCTURE



PROCUREMENT

INBOUND LOGISTICS

OPER-ATIONS

OUTBOUND LOGISTICS

MARKET-ING

& SALES

SERVICE

PRIMARY ACTIVITIES

SUP-PORT

ACTIV-ITIES


VERTICAL LINKAGESVERTICAL LINKAGES

LINKAGES CAN ALSO EXIST OUTSIDE THE LINKAGES CAN ALSO EXIST OUTSIDE THE FIRM; FOR INSTANCE THERE IS A LINKAGE FIRM; FOR INSTANCE THERE IS A LINKAGE BETWEEN A FIRM’S CHAIN AND THE BETWEEN A FIRM’S CHAIN AND THE VALUE CHAIN OF ITS SUPPLIERS AND VALUE CHAIN OF ITS SUPPLIERS AND CHANNELS.CHANNELS.

e.g. THE ACTIVITIES OF THE RAW e.g. THE ACTIVITIES OF THE RAW MATERIALS SUPPLIERS AFFECT THE MATERIALS SUPPLIERS AFFECT THE ACTIVITIES OF THE FIRM. SIMILARLY, THE ACTIVITIES OF THE FIRM. SIMILARLY, THE ACTIVITIES OF THE DISTRIBUTOR ALSO ACTIVITIES OF THE DISTRIBUTOR ALSO AFFECT THE FIRM.AFFECT THE FIRM.

SUPPLIER F I R MCHANNEL /

BUYER

VALUE SYSTEM:

LINKAGES OF ACTIVITIES BETWEEN FIRMS


THESE LINKAGES CAN PROVIDE THESE LINKAGES CAN PROVIDE OPPORTUNITIES FOR THE FIRM TO OPPORTUNITIES FOR THE FIRM TO ENHANCE ITS COMPETITIVE ENHANCE ITS COMPETITIVE ADVANTAGE.ADVANTAGE.


THE VALUE CHAIN OF A FIRM IS A THE VALUE CHAIN OF A FIRM IS A PART OF THE PART OF THE VALUE SYSTEMVALUE SYSTEM, , WHICH IS THE LARGER STREAM WHICH IS THE LARGER STREAM OF ACTIVITIES FROM SUPPLIERS OF ACTIVITIES FROM SUPPLIERS TO BUYERS. TO BUYERS.


BECAUSE OF THE INTERACTIONS BECAUSE OF THE INTERACTIONS BETWEEN THEM, THE SUPPLIERS BETWEEN THEM, THE SUPPLIERS AND EVEN THE CHANNELS AND EVEN THE CHANNELS AFFECT A COMPANY’S VALUE AFFECT A COMPANY’S VALUE CHAIN. CHAIN.


THE PRODUCT OF A FIRM THE PRODUCT OF A FIRM REPRESENTS A PURCHASED REPRESENTS A PURCHASED INPUT TO THE BUYER’S CHAIN.INPUT TO THE BUYER’S CHAIN.

DIFFERENTIATION CAN RESULT DIFFERENTIATION CAN RESULT FROM HOW A FIRM’S VALUE FROM HOW A FIRM’S VALUE CHAIN RELATES TO THE VALUE CHAIN RELATES TO THE VALUE CHAIN OF ITS BUYERCHAIN OF ITS BUYER


VALUE IS CREATED WHEN A FIRM VALUE IS CREATED WHEN A FIRM CREATES COMPETITIVE CREATES COMPETITIVE ADVANTAGE FOR ITS BUYER. ADVANTAGE FOR ITS BUYER.


A FIRM CAN ALSO ENTER INTO A FIRM CAN ALSO ENTER INTO COALITIONS WITH INDEPENDENT COALITIONS WITH INDEPENDENT FIRMS TO ACHIEVE BENEFITS FROM FIRMS TO ACHIEVE BENEFITS FROM THE LINKAGES AMONG THEIR VARIOUS THE LINKAGES AMONG THEIR VARIOUS VALUE CHAINS. VALUE CHAINS.

EXAMPLES OF SUCH COALITIONS ARE EXAMPLES OF SUCH COALITIONS ARE TECHNOLOGY LICENSES AND JOINT TECHNOLOGY LICENSES AND JOINT VENTURES.VENTURES.

COMPETITIVE SCOPE AND COMPETITIVE SCOPE AND BUSINESS DEFINITIONBUSINESS DEFINITION

DEFINE THE BUSINESS UNIT IN DEFINE THE BUSINESS UNIT IN WHICH THE VALUE CHAIN WOULD WHICH THE VALUE CHAIN WOULD BE OPTIMAL FOR THE FIRMBE OPTIMAL FOR THE FIRM

e.g. EXPORT SALES DIVISION vs. e.g. EXPORT SALES DIVISION vs.

LOCAL SALES DIVISIONLOCAL SALES DIVISION

APPLYING THE VALUE APPLYING THE VALUE CHAIN TO AN CHAIN TO AN

INDUSTRYINDUSTRY THE VALUE CHAINS OF THE THE VALUE CHAINS OF THE

DIFFERENT FIRMS DIFFERENT FIRMS WITHINWITHIN AN AN INDUSTRYINDUSTRY VARY FROM ONE VARY FROM ONE ANOTHER ANOTHER

IN FACT, THE DIFFERENCES IN IN FACT, THE DIFFERENCES IN THE VALUE CHAINS AMONG THE THE VALUE CHAINS AMONG THE DIFFERENT INDUSTRY PLAYERS DIFFERENT INDUSTRY PLAYERS PROVIDE THE SOURCE OF PROVIDE THE SOURCE OF COMPETITIVE ADVANTAGES COMPETITIVE ADVANTAGES BETWEEN THESE PLAYERS. BETWEEN THESE PLAYERS.


INDUSTRYINDUSTRY SINCE THE APPLICATION OF THE VALUE SINCE THE APPLICATION OF THE VALUE

CHAIN ANALYSIS TO AN INDUSTRY WILL CHAIN ANALYSIS TO AN INDUSTRY WILL LIKELY BLUR OR HIDE THESE SOURCES LIKELY BLUR OR HIDE THESE SOURCES OF COMPETITIVE ADVANTAGE, DR. OF COMPETITIVE ADVANTAGE, DR. PORTER THEREFORE SUGGESTS THAT: PORTER THEREFORE SUGGESTS THAT:

THE BUSINESS UNIT IS THE CORRECT THE BUSINESS UNIT IS THE CORRECT LEVEL TO CONSTRUCT A VALUE CHAINLEVEL TO CONSTRUCT A VALUE CHAIN

ANDAND THE APPLICATION TO AN ENTIRE THE APPLICATION TO AN ENTIRE

SECTOR OR INDUSTRY IS NOT SECTOR OR INDUSTRY IS NOT RECOMMENDED. RECOMMENDED.


INDUSTRYINDUSTRY NEVERTHELESS, VALUE CHAIN NEVERTHELESS, VALUE CHAIN

ANALYSIS ON AN INDUSTRY LEVEL HAS ANALYSIS ON AN INDUSTRY LEVEL HAS BEEN PERFORMED IN NUMEROUS BEEN PERFORMED IN NUMEROUS INDUSTRY STUDIES ALL OVER THE INDUSTRY STUDIES ALL OVER THE WORLD. WORLD.

THE PEARL 2 PROJECT HAS, THE PEARL 2 PROJECT HAS, THEREFORE, DECIDED TO UTILIZE THE THEREFORE, DECIDED TO UTILIZE THE VALUE CHAIN ANALYSIS IN THE VALUE CHAIN ANALYSIS IN THE VARIOUS STATE-OF-THE SECTOR VARIOUS STATE-OF-THE SECTOR REPORTSREPORTS

Documents

VALUE CHAIN ANALYSIS : An Overview By: Dr. Rizalito L. Gregorio UNIVERSITY OF THE PHILIPPINES