VCA paper

VCA paper - Transcript

Exhibit 1 Value Chain In the Paper Products Industry
If vertical integration is the key structural driver of paper mill cost then firm A has significant advantage and firm D has significant disadvantage in this market place
Calculate the ROA earned at each stage which will help in understanding the power of buyer vs seller at each stage
This comparison could help the firms in identifying ways to exploit their linkages with their suppliers as well as with their customers to reduce cost or enhance differentiation or both
End Use Customer
Distribution
Converting Operations
Paper Manufacturing
Pulp Manufacturing
Logging and Chipping
Silva culture and Timber Farming
A
B
C
D
G
F
E