Question

Choose an example of a global value chain and an example of domestic value chain. Compare and contrast the key challenges that the managers would face. Then, propose the ways to confront these challenges.

Utilizing the Exhibit 2.4 from Chapter 2 of the text, evaluate how each value chain you chose from Part 1 of this discussion can be described from a pre- and post-production service perspective. Provide at least two examples for each perspective. Strayer

Answer 1

One example of a global value chain is the supply of Apple products globally. Apple Inc has global chain value, which assist in supplying of its products to the different countries across the world. An example of domestic value chain is Alibaba one of the largest retailers in China. The online retailer is able to supply its product locally the customers who orders the products locally. The managers of a global value chain are likely to face various challenges including the transportation costs and crossborder regulations could limit the supply of its products to foreign markets (Elms & Low). In contrast, the managers of domestic value chain are exposed to cases of fraud from the ecommerce sites as well as limited access to certain customers. In spite of all, both global and domestic value chains are able to meet the needs of the end consumers. To confront these challenges, it is recommendable for the managers to collaborate with the international partners, improve security controls with the supply chain as well as integrating technology to the supply chain process.

In terms of preproduction services, Apple Inc always employs reliable suppliers would protect the quality and safety of the products. It has a wide global marketing campaigns aimed at popularizing their products to the customers. On the other hand, the postproduction services included the warranty and claim services for their products, as well as warehouse and inventory management to counter the demand for the Apple Inc products in the international markets. In the case of the domestic value chain, the preproduction services of Amazon.com include creating awareness of their online sales, online adverts, and integrated purchasing systems. The postproduction services of Amazon.com include offering technical services, transportation services, installation and warehousing services.