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Value Chain Analysis

WS 2004/2005

Ing. Carlos Torres

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Termine

• 12. Januar: Mapping Value Chains. Das Beispiel der Lachs-Industrie in Chile

• 19. Januar: Verwendung von Konzepten zur Fallstudien

• 26. Januar: Gruppen Präsentationen

• 02. Februar: Wertschöpfungskette-Analyse als analytische Instrument

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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

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Governance

Source: Kaplinsky, 2000.

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Upgrading

– Product – Process– Functional– Chain

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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

– Key actors• Producers of pc systems (FDI, OEM)

• Subcontractors

• Buyer and traders

• Government agencies

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Computer VC

Source: Kishimoto, 2003

9

Automobile VC

– Internationalisierung– Globale Zulieferer– Tendenz zur Konzentration (Hersteller)– Kernkompetenz und Outsourcing

• Gemeinsamen Plattformen• Lean production

– Vertikal Integration– Kernaktivitäten

• Design, Markenidentität• Motorenbau, Fahrzeugsicherheit

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Automobile VC

OEM

1st tier Supplier

2nd tier Supplier

3th tier Supplier

Technology

Information

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Automobile VC

Source: Stephan, 1999. Consequence of changes in value-added 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

– Triangle Manufacturing (Asia)• Offshore production• OEM -> ODM -> OBM• Taiwan, South Korea, Hong-Kong (Mauritius)

OEM model

Assembly model

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Apparel VC

Source: Gereffi, 1999. Buyer-driven commodity chains

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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 (Lagerbestände, Eintritt Vietnams)– Überproduktion– zunehmender Qualitätsverlust– Ungleichverteilung von Gewinnen zu Gunsten der

Konsumentenländer– 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: Röster und Importeure/Händler • Marginalisierung der Zulieferern• Vertikale Integration internationaler Händler 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: Kaplinsky2000

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Source: Kaplinsky, 2000.

Fresh Vegetables /Automobile components

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Fresh Vegetables /Automobile componentsSource: Kaplinsky, 2000

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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)