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Management Studies

Smart Chips Company: Value Chain Management

In competitive industries, most of the time, companies must look within, and find ways to reduce the cost of bringing a product from the raw material to finished stage, in order to remain competitive in the long run.

The computer microchip industry, in particular, is very competitive. Whenever a new microchip comes into the marketplace, the makers of "clone" microchips release a clone microchip that is almost as good as the original, but priced considerably lower.

The Smart Chips Company specializes in developing first-of-its-kind microchips; yet its market share has been hurt by "clone" microchips. The Robbins text outlines 6 requirements for Value Chain Management. Discuss how you would put these requirements to work specifically at the Smart Chips Company, in order to help it remain competitive in the long run.

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