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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 on theme: "EXHIBIT 1 THE VALUE CHAIN. COMPONENTS OF THE VALUE CHAIN u Primary activities u Support activities u Upstream and downstream."— Presentation transcript:

1 EXHIBIT 1 THE VALUE CHAIN

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

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

4 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

5 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

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

7 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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