Global Value Chain makes Advantage for your Business

Innovation Value in your Products Managing/Control Cost = BLUE OCEAN

What’s general definition about Value Chain?

Michael E. Porter (Harvard Business School) has introduced the concept of a value chain first. He, who is also well known releasing the Five Forces Model to show businesses where they rank in competition in the current marketplace, discussed the value chain concept in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Free Press, 1998).

The idea of the value chain is based on the whole of process view of organisations, the idea of seeing a manufacturing / service organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.

Ideally, the global value chain model helps identify areas that can be optimised for maximum efficiency, and be also managed the whole of model in your business for the final innovation value and profit.

However, the making differentiation through the value chain is that it seems not to generate the benefit.

It would be a matter of time turning into competitive situations even if you found your new market and released new products. Nowadays, your rivals easily imitate your products and business model through the IOT and technology progress speed.

Therefore, It is NOT enough only making differentiation and cost reduction in the manufacturing process for your business. 

Basic trading business concept is that someone brings a product from an existing market to another new market. However, it is easy turning into competitive situations and we saw that many Japanese products sales Eastern Asia such as Hong Kong, Taiwan, Singapore, where the supply from Japan are higher than their market demand,  and they are participate into price wars.

How long can you enjoy such peaceful market said non-competitive “Blue Ocean”? When it will be turned into  competitive situation “Red Ocean”?

A purpose of global value chain is usually recognised for cost reduction way only for mass market, but as a global market main stream, the global value chain makes your business for innovation value in your market, and the innovative value let your business protect from competitors.

“Do not compete in your market, Make Innovation Value for your customers”


Formation of Global Value Chain Model by WORLD GATE LLC.

I. Support (Management) Line

1 Agreement & Negotiation 契約&交渉
2 Investigation & Research 調査
3 Communication 情報共有
4 Settlement / Account 決済
5 Trading Administration 貿易実務
6 Preferential Tariffs 関税特恵

II. Primary Line

1 Inbound Providing made in (by) Japan materials
2 Manufacturer OEM/ODM/PB Factories in Japan
3 Logistics Delivery from the factory in Japan to your destination
4 Marketing Making differentiation using by Japan quality in your market
5 Sales  Easily sales by Japan unique for your customers

Advantage of the Model

There are two aspects of advantage regarding the value chain analysis.

Innovative advantage: Identifying the activities that create the most value to customers is the priority. These can include using relative marketing strategies, knowing about products and systems, answering phones faster, and meeting customer expectations. The next step is evaluating these strategies in order to improve the value. Focusing on customer service, increasing options to customize products or services, offering incentives, and adding product features are some of the ways to improve activity value. Lastly, businesses should identify differentiation that can be maintained and adds the most value.

Cost advantage: After identifying the primary and support activities, businesses should identify the cost drivers for each activity. For a more labor-intensive activity, cost drivers could include how fast work is completed, work hours, wage rates, etc. Businesses should then identify links between activities, knowing that if costs are reduced in one area, they can be reduced in another. Businesses can then identify opportunities to reduce costs.


マイケル・ポーター教授(ハーバードビジネススクール)が、バリューチェーンモデルを発表しました。このビジネスモデルは、自社のビジネスプロセスの連鎖から、以下の2つのメリットを事前に計画、マーケティング上、生み出す効用があります。

・マーケティング上のポジショニング優位性

・コスト削減

これにより、自社のマージンを生み出すことを期待しています。

既存バリューチェーンの問題点

これまでのバリューチェーンが、マーケティング上の他社との違い、コスト削減にフォーカスを当てていましたが、現代の情報スピード、製造技術革新により、他社との違いを謳歌できる時間=マーケット上での優位性を享受できる時間が短くなってきました。

つまり、いくら違いを生み出しても、すぐに真似されやすい時代になっています。従いまして、せっかく、海外に商流を作っても、他社との価格競争に陥る、つまり、日本国内と同じ状況が起こりやすい状況です。

弊社は、他社との差別化ではなく、そもそも、戦わないで済む商品開発を海外のバイヤーとともに、日本国内のパートナーと創り上げ、海外マーケットで競争しない仕組みを計画的に作り出す、お手伝いをしています。

さらに、TPP, FTAなど聞かれるように、特恵関税を最大活用して、海外バイヤーの仕入れコストを最小化することにより、現地調達と日本国内委託のコストを最小化していきます。

海外展開をご検討の方、お気軽に問い合わせください。