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EXHIBIT 1 THE VALUE CHAIN

EXHIBIT 1 THE VALUE CHAIN. COMPONENTS OF THE VALUE CHAIN . Primary activities Support activities Upstream and downstream. SUSTAINING COMPETITIVE ADVANTAGE. Sustainable means that strategies are not easily neutralized, copied, or attacked by competitors. MULTINATIONAL DIVERSIFICATION.

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EXHIBIT 1 THE VALUE CHAIN

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  1. EXHIBIT 1 THE VALUE CHAIN

  2. COMPONENTS OF THE VALUE CHAIN • Primary activities • Support activities • Upstream and downstream

  3. SUSTAINING COMPETITIVE ADVANTAGE • Sustainable means that strategies are not easily neutralized, copied, or attacked by competitors

  4. MULTINATIONAL DIVERSIFICATION • A quick way to gain a market presence • Coordinate and use resources from any location • Establishes global brand names • Cross subsidization

  5. INDUSTRY EFFECTS ON STRATEGY SELECTION • Market size • Ease of entry and exit • Whether there are economies of scale in production • Driving forces of change • Nature of competition in industry

  6. EXAMPLE KEY SUCCESS FACTORS • Innovative technology • Broad product line • Distribution channel effectiveness • Price advantages • Promotion effectiveness

  7. CORPORATE STRATEGY SELECTION • Deciding which businesses in the portfolio are targets for growth and investment and which are targets for divestment or harvesting

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