Value Chain Analysis

WS 2004/2005 Ing. Carlos Torres

Termine
12. Januar: Mapping Value Chains. Das Beispiel der Lachs-Industrie in Chile 19. Januar: Verwendung von Konzepten zur Fallstudien 26. Januar: Gruppen Prsentationen 02. Februar: Wertschpfungskette-Analyse als analytische Instrument

Index 17. Januar

Governance Upgrading Case Studies
Computer Industry Taiwan Automobile Industry Apparel Industry Coffee Fresh Vegetables (Africa-UK)

Comparisons
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Governance
Executive Legislative Judicial

Governance

Source: Kaplinsky, 2000.

Upgrading
Product Process Functional Chain

Computer VC
80 2000: US$ 47 billion business Taiwan Cluster SMEs
upgrading Offshore (higher share of output)

Stages:

The initial stage The OEM stage The ODM stage The ODM / Global logistic stage
Producers of pc systems (FDI, OEM) Subcontractors Buyer and traders Government agencies

Key actors

Computer VC

Source: Kishimoto, 2003

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Automobile VC
Internationalisierung Globale Zulieferer Tendenz zur Konzentration (Hersteller) Kernkompetenz und Outsourcing
Gemeinsamen Plattformen Lean production

Vertikal Integration Kernaktivitten

Design, Markenidentitt Motorenbau, Fahrzeugsicherheit
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Automobile VC
OEM T e c h n o l o g y

I n f o r m a t i o n

1st tier Supplier

2nd tier Supplier

3th tier Supplier

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Automobile VC

Source: Stephan, 1999. Consequence of changes in valueadded strategies for the sourcing behaviour of OEMs

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Apparel VC
Buyer-driven VC (Relational rents)
Retailers Branded marketers Branded apparel manufacturers
De-verticalization Re-verticalization

OEM model Assembly model

Triangle Manufacturing (Asia)

Offshore production OEM -> ODM -> OBM Taiwan, South Korea, Hong-Kong (Mauritius)
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Apparel VC

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Apparel VC
Trends:
NIEs exports to USA Inter-Asia trade (non-quota markets) Concentration (country) suppliers Upgrading possibilities for Mexico Power of Suppliers Networks

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Coffee VC
Ende des Internationalen Kaffeeabkommens 1989
Preisverfall (Lagerbestnde, Eintritt Vietnams) berproduktion zunehmender Qualittsverlust Ungleichverteilung von Gewinnen zu Gunsten der Konsumentenlnder Starke Preisschwankung durch Spekulation

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Coffee VC

Source: Schierenberg (2004), nach Talbot (1997).

Distribution of rents 1971-1995

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Coffee VC
Wachstumsrate der Produktion
Konsumwachstum Neue Konsumgewohnheiten

Barrier to entry: Werbekosten Machtkonzentration: Rster und Importeure/Hndler Marginalisierung der Zulieferern Vertikale Integration internationaler Hndler ohne Profitsteigerung

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Coffee VC

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Fresh Vegetables VC
Strategic sector for retailers
FFV are income elastic products (consumers) Unbranded

Production
Geographically bounded (climate) Unskilled labour

Before: arms-length relationships (price) Now:

Retailing Concentration (new success factors) Wholesalers Export agents or large producers Development of new products
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Fresh Vegetables VC
Governance
Legislative: retailers (Regulatory authorities) Judicial: export agents Executive: exporters and category-mangers

Margins: 25% retailers Trend:

Barriers to entry => commodity ? Production !

Upgrading Possibilities LDC

Development of new products Coordinate production and logistics Supporting local producers (income distribution)
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Source: Kaplinsky 2000

21

Fresh Vegetables / Automobile components

Source: Kaplinsky, 2000.

22

Source: Kaplinsky, 2000

Fresh Vegetables / Automobile components

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Mapping Value Chains

Literature Homework
A Hanbook for Value Chain Research (Kaplinsky, Raphael; Morris, Mike. 2000) How we define value chains and production networks? (Sturgeon, Timothy. WP MIT, 10, 2000) Developing Country Firms in the World Economy: Governance and Upgrading in Global Value Chains (Humphrey, John; Schmitz, Hubert. INEF, 61, 2002)

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