Supply Chain & Value Web

How to map out an industry of your choice and position your business within that industry 

Forget about finding the theory behind Value Web on the internet. It isn’t there, and if it is, it’s not what I am using. My framework to map out your industry and find opportunities to create value is a creation of myself. Maybe it’s not according to the book, but it works like a charm. So pay attention and stick to what is offered in this MOOC module.

Value Web framework:

The three theories that form the foundation of this framework are the Supply Chain, Value Chain and GAP analysis. Furthermore the framework contains elements of the Competitor Analysis and Positioning.

We will actually be mapping out the industry of your choice to see how goods and materials flow, where value is created who competes for what. When we do that we can establish the influence of trade barriers and legislation and we can investigate the bottlenecks in the value web to see where we can invest our money to improve the entire value web (Value Web 1).

Another use for the framework is to map out your own business within your industry. If you do it right, you can map out your value chain, map out competitors and alternatives in each step of the value chain, so you create a value web, position yourself within the value web and substantiate your “make or buy” decisions. When done right it’s easy to find partners, suppliers and distributors (Value Web 2)

Case:

As example we use the case of a Dutch manufacturer of cotton yarns and fabrics called “Chechi Textiles”. Their yarns and fabrics are of good quality, affordable and dyed and printed with colourful designs. They get a lot of orders from Mozambique (Beira) and you are looking into possibilities to do more business there. We will investigate two options:

  • Option One is to see whether they can leverage their strength (manufacturing of high quality yarns and fabrics) to create a business opportunity in the cotton industry in Mozambique.
  • Option Two is whether they can increase their exports to Mozambique by establishing a trade subsidiary in Beira.
DISCLAMER: The situations described in the examples are fictitious and just used to illustrate a point. The actual situation of the East African cotton market may be very different. I did not check any of the facts, so before using any facts given in this module, check them yourself.

Content of this MOOC Module:

Gallery:

Clip 1: Model of a simple supply chain for the cotton industry in Mozambique (Youtube)

Clip 2: How a supply chain can turn onto a value web (Youtube)

Clip 3: How to do a gap analysis on your value web (Youtube)

Clip 4: How to improve the performance of your value web (Youtube)

YouTube-video



Additional Resources:

Assignments:

  • Group Assignment "2: Supply Chain and Value Web"
    • Have you been able to study the MOOC Module on Supply Chain and Value web?
    • Do you understand how the framework works?
    • Do you agree with the way the framework is portrayed?
      • if not please state where you do not agree.
    • Can you think of tree situations whereby the framework is useless?
    • Do you have any questions about the framework?
    • Can you list the mayor players in your value web?
      • what country have you chosen?
      • what industry have you chosen?
      • what are the mayor players in your industry?
    • Have you prepared a five minute presentation on your business idea?
    • How would you rate the quality of the on-line study materials regarding Supply Chain and Value Web