INTEGRATED PROTECTED AREA CO-MANAGEMENT (IPAC) - BIDS
INTEGRATED PROTECTED AREA CO-MANAGEMENT (IPAC) - BIDS
INTEGRATED PROTECTED AREA CO-MANAGEMENT (IPAC) - BIDS
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Chapter 5:<br />
Value Chain Analysis for SRF Products<br />
5.1 Introduction to Value Chain Analysis<br />
The value chain framework, which is a powerful analysis tool for the strategic planning of an<br />
activity, is a string of agents or collaborating players, who work together to satisfy market<br />
demands for specific products or services.<br />
The ultimate aim of any value chain framework is to maximize value creation while minimizing<br />
costs. This entails the concept of value added, in the form of the value chain, which is utilized to<br />
develop a sustainable competitive advantage of the activity concerned. This may consist of the<br />
key steps within an activity that link together to develop the value of the final product. Such<br />
steps may include purchasing, manufacturing, distribution and marketing of the products and<br />
activities.<br />
The value chain analysis essentially entails the linkage of two areas. First, the value chain<br />
identifies and links the value of the activities with its main functional parts. Second, the<br />
assessment of the contribution of each part in the overall added value is made. The profitability<br />
of an activity depends to a large extent on how effectively it manages the various steps in the<br />
value chain, such that the price that a customer is willing to pay for the products and services<br />
exceeds the total costs of the value chain steps. It is important to bear in mind that while the<br />
value chain analysis may appear simple in theory, it is quite complex in practice and its<br />
assessment is quite time consuming.<br />
This brief study entails value chain analysis in its simplest meaning in that the activities centered<br />
around SRF products are assessed in terms of value added starting from resource collectors to<br />
ultimate consumers. Focus is given, however, on social relationships among actors involved<br />
across supply value chain. For simplicity, the study assumes no export activities in the process.<br />
In other words, only indigenous and local actors are under the purview of the present<br />
investigation.<br />
As also described in methodology chapter, the basic structure of marketing chains for SRF<br />
products is shown in Figure 5.1. However, the actual marketing chains are found to follow<br />
multi-dimensional patterns (Annex C).<br />
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