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Revisiting Principles of Value Chains vs. Supply Chains

 

Lecture given by Professor Andrew Fearne of Kent Business School illustrated with VIDOONS.

The concept of the value chain was introduced by Michael Porter in his seminal text ‘Competitive Strategy’ (Porter, 1995), in which he highlights the potential for different organisations within the chain and different functions within organisations to add value and thereby deliver competitive advantage. However, the term ‘value chain’ has yet to become cemented in the vocabulary of commercial businesses and government departments. Moreover, the academic literature on value chains and value chain management is distinctly limited, with a supply chain (operations management, procurement, logistics) orientation dominating the business management journals.

In essence, the starting point on the journey to sustainable competitive advantage is the change in mindset that places the consumer first and everything else subordinate to their needs and wants. Even those agencies with a mandate to secure behaviour change and influence consumer motivation — for the benefit of their health or the sustainability of the environment — an understanding of their perceptions and attitudes is critical.

Whether we are trying to build loyalty for our brands or more sustainable communities and environments, changing people’s behaviour begins by understanding what motivates them and to do that requires a paradigm shift in the way we view the value chain — from supply push to demand (value) pull.

The Centre for Value Chain Research is here to assist with the journey — in thinking, decision-making and action.

You can find out more about Value Chains from http://www.kent.ac.uk/kbs/

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About Rover

Rover is the chief for contributor relations of Negosentro. He has dabbled into digital entrepreneurship and loves to share stories he picks up all over the web.

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