A value chain covers all the activities targeted at creating a product or a service, including the conception to its utilization by the final consumer. The rapid growth of services in the international economy represents one of the “transformation vectors of global chains” (Vadcar para. 4). The globalization process of the value chain faced significant changes within new business strategies. Two factors enhance current development in creating value on either side of the organization’s chain of activities. They include the interrelatedness of customer goods and services, equipment and industrial processes, and the exceptional role of consumers in the chain. The recent economic research demonstrates the increased benefit received from the brand positioning, which encouraged enterprises of the medium or upper-medium range to invest in the brand to capture value.
Another powerful source of value creation is the linkage between the brand effect and origin. The design- and innovation-oriented companies should provide the connection to equipment and customer goods. According to Vadcar, good products provide the best digital services and applications for data management and analysis, establishing alliances between global corporations and digital actors. The value of a product or service is inherently linked to its connectivity and relationship with the customer. Therefore, the customer relationship is perceived as a driving force of creating value because global value chains are strongly defined by the final consumer and because digital technologies improve customer relationships. To sum up, conventional strategies of value creation face a decline in their efficiency. However, it is also a complex issue to lead successful growth tactics in terms of innovative digital technologies and new challengers from emerging countries. This emphasizes the role of the economic environment that determines the best ways of value creation in the future.
Works Cited
Vadcar, Corinne. “Value Creation and Global Chains: New Business Models.” Paris Innovation Review, 2016, Web.