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The Factors Underlying Value Chain Creation

David Baucom

David F. Baucom leverages a past career as US Navy Rear Admiral (RADM) in his current executive responsibilities leading Vintun, LLC’s supply chain capacities. RADM David Baucom maintains a strong personal interest in value chain creation within the supply chain management sphere.

One of the pioneering works in this area was authored by Michael Porter, whose 1998 book “Competitive Advantage - Creating and Sustaining Superior Performance” defines practical techniques of value chain analysis. The value chain itself is designated as those activities and processes that enable the development, production, packaging, shipment, and sales of services or products.

There are two main classes of activity that drive these processes: value activities and primary activities, with the latter confined to those that directly inform the creation and maintenance of said product. Support activities extend to the development of underlying technologies and human resources.

The way that linkages arise in this chain are not autonomous, but rather represent a complex structural interdependence. They extend from internal linkages within the company to external boundary defined relationships with intermediaries and suppliers. Successful design of the value chain often results in a consumer-focused competitive advantage that drives market expansion.

 

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