Value Chain Strategy

 
 
 
Agents%brokers
Wholesalers% distributors
Retailers Retailers
Samsung
Goal of moving from cheap imitative electronics products to a cool brand
Feature-packed products Products removed from shelves of Wal-
Mart and Target and positioned with higher-end chains like Best Buy and ircuit ity
!amsung competes through hardware innovation" product customi#ation and speed
 
 
music players
better understand market trends
market learning
 
 
 
A . C
Re"lon cosmetics Caterpillar e0uipment
 
Control considerations
2egal constraints
Channel a"ailability
be used
Sales forecast ', years) 6(7 million 6,7 million
Forecast accuracy 8igh Medium to lo$  
Estimated costs 6( million9 6,:; million99
Selling E+pense 'cost%sales) (7< (,< 
Fle+ibility =ood Fair 
9 Includes >< commission plus management time for recruiting and training representati"es:
99 Includes 6(77?777 for (7 salespeople? plus management time:
 
Physical disti"ution management
 
8ome country Foreign country
&omestic producer or  marketer sells to or through
#pen distribution "ia domestic $holesale middlemen
E+porter  Foreign agent or  merchant $holesalers
Foreign retailer 
 
marketing
 % +,cessive inventories
 % Too many new products
 % 01alue2 pricing replaces promotions
 % ontinuous replenishment and cross-docking
 % /nternet-based network for supplier-buyer trading
 
;: Responding to 3ull !hrough the Supply Chain
: !he 3ursuit of 3erfection