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McCormick+Schmitz Handbook for value chain research on - PACA

McCormick+Schmitz Handbook for value chain research on - PACA

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Figure 8.1: Chain map - number of workers<br />

Chain 1 Chain 2 Chain 3<br />

Nati<strong>on</strong>al Market US Market German Market<br />

Retail<br />

1,800 ? 1,200<br />

Wholesale<br />

180<br />

Producti<strong>on</strong><br />

12,000 16,000 6,000<br />

home<br />

workers<br />

6,000<br />

Inputs<br />

suppliers of yarn<br />

and cloth<br />

8,200<br />

suppliers of<br />

accessories and<br />

packaging materials<br />

4,200<br />

equipment<br />

suppliers<br />

800<br />

= arms length market relati<strong>on</strong>ship = balanced network<br />

= c<strong>on</strong>trolled network = hierarchy (subsidary)<br />

37

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