Paper Summary:

This paper defines and describes the interplay within the global value chain in an organization, with a focus on the textile industry. In particular, the author explores how implementation of the global value chain has allowed foreign textile firms to become more competitive against their American rivals. The author then highlights China's successful use of value chain in its textile industry.

Outline:
Introduction
Value Chain Overview
China's Use of Inbound Logistics
China's Use of Production Operations
China's Use of Outbound Logistics
China's Use of Sales and Marketing
China's Use of Maintenance
Conclusion

From the Paper:

" The value chain centers on value-added processes within a company. These processes include: the inbound logistics, production operations, outbound logistics, sales and marketing, and maintenance. Administrative functions, human resource management, research and development, and procurement processes are all deemed as support activities. The ultimate end-goal for organizations is to maximize the value of each process and minimize the costs associated. The global value chain extends beyond the organization itself, but throughout the entire supply and distribution chain, across geographic boundaries. Each of the organization's suppliers', distributors' and even the organization's buyers' value chain interconnects with the organization, creating a large interconnected, and often global, value system (Porter). The Chinese have become very skilled in managing this value chain and, as such, have increased their global competitiveness."

Sample of Sources Used:

• Fong, M., Wonacott, P. & Aeppel, T. "Chinese Manufacturers are Closing Quality Gap: Investments in Technology Brings Gains in Innovation, Research and Productivity." Wall Street Journal 14 Oct 2004: p. A17.
• Gereffi, G. & Memedovic, O. "The Global Apparel Value Chain: What Prospects for Upgrading by Developing Countries." UNIDO. 2003. UNIDO. 14 Jul 2006 <http://www.unido.org/file-storage/download/?file_id=11900>.
• Porter, M. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press, 1985.

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