EXHIBIT 1 THE VALUE CHAIN. COMPONENTS OF THE VALUE CHAIN u Primary activities u Support activities u Upstream and downstream.

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Presentation transcript:

EXHIBIT 1 THE VALUE CHAIN

COMPONENTS OF THE VALUE CHAIN u Primary activities u Support activities u Upstream and downstream

SUSTAINING COMPETITIVE ADVANTAGE u Sustainable means that strategies are not easily neutralized, copied, or attacked by competitors

MULTINATIONAL DIVERSIFICATION u A quick way to gain a market presence u Coordinate and use resources from any location u Establishes global brand names u Cross subsidization

INDUSTRY EFFECTS ON STRATEGY SELECTION u Market size u Ease of entry and exit u Whether there are economies of scale in production u Driving forces of change u Nature of competition in industry

EXAMPLE KEY SUCCESS FACTORS u Innovative technology u Broad product line u Distribution channel effectiveness u Price advantages u Promotion effectiveness

CORPORATE STRATEGY SELECTION u Deciding which businesses in the portfolio are targets for growth and investment and which are targets for divestment or harvesting

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