Representation Of The Value Chain

Representation of the value chain

Introduction

According to Wilson Romero, the value chain is concentrated in the concept of the production chain (production process) but adds more elements, spreading the entrance of the product into the market. It is part of the response to the need to increase competitiveness to survive in a globalized world. The value chain is a system that relates the company to the activities, it is dependent on the demand allow to carry out the competitiveness, in order to minimize the costs of production and technology, it should be stressed that in each part of the chainValue is the concept of added value.

Developing

According to Wilson Romero, the value chain began to be used from the sixties and seventy by analysis carried out in the journey of mineral exports to observe if a country is competitive in the market. In the seventies and eighties instead it was added in France to observe and discover the capacity of companies complete relations with the value chain. In the nineties a methodological development of its own analysis has been used, it is a brief reference to the origin according to this author giving ideas of the current evolution and use of the implementation of the value chain.

According to Wilson Romero, the value chain identifies directly or indirectly interrelated processes either with the design, production, marketing or delivery of the company’s product or service studying the relationship of the activities.

To be able to identify the activities that can give competitive advantage. In addition to being used to investigate profit distribution changes, value chains in addition to study. After applying the value chain, made up of those of process sets in progressive order allows them to improve and optimize them to achieve higher quality, reducing costs and allowing the failures to solve. 

conclusion

It promotes us to relate the processes and objectives to avoid problems in the processes through better control. According to Wilson Romero, when applying the value chain is not a strategy in itself. If you try to describe a strategy the starting point is the value proposition to meet customer needs. To achieve a competitive advantage, an organization must provide a distinctive value through a different value chain. In other words, perform different activities than competitors or perform similar activities in a different way.