Analysis of the Firm and Competitive Advantage Essay

Analysis of the Firm and Competitive Advantage - Essay ExampleIt is a series of activities (i.e. a convergenceion process) that constitutes a chain creating and building value. The gist of these generated values is c bothed the total value performed by an organization (Value train Analysis). It is full range of activities that are required to bring a product from its conception to its end use and beyond (qtd. in Basic Concepts).A value chain is divided into two parts primary activities and support activities. The power is a collection of essential activities (e.g. inbound logistics, operations, outbound logistics, marketing and sales, service) that builds up the actual return process of a product, while the latter activities (e.g. procurement, technology development, forgiving resources management, and firm infrastructure) bolsters the former, ensuring its effectiveness and productivity (Value Chain Analysis). The performers of these activities may be found in a single firm or in various firms in varied countries.Global value chains is an internationalization of the production process wherein different countries act as participants in the various stages of production of a particular good. Under this operational system, quality and efficiency of production is optimized since the site of a specific stage of production is in a get where it is done in the most efficient and most economical way (Global Value Chains). The modern day textile industry is among those that heavy rely on the global value chain to subsist. With the proliferation of branded and designer clothes, the clothing industry has become a sought-after commodity that requires the specialization of different countries to produce a quality product that satisfies the discriminating preferences of its consumers. Belonging to the buyer-driven type of global value chain, those wherein large retailers, marketers, and branded manufacturers play pivotal roles in climb up decentralized production net works in various exporting countries. (qtd. in Gereffi and Memedovic 5) the developing countries, which mainly constitutes the exporting countries under this set-up, have a great opportunity in participating in the global business scene.One of the countries that maximize its competency in textile global value chains is China. Endowed with plushy flora used as raw materials for producing cloth and populated by hundreds of millions of workforce that receives one of the lowest wage rates in the world, China has definitely an edge in producing textiles and apparels. Statistics have proven that they are indeed the worlds top apparel exporter, producing $39.2b worth of apparel in the year 2000, which comprises 14.5% of all her export items. With all these advantages in their favor, Chinese textile firms really have competitive advantage over American companies (Gereffi and Memedovic 29). The Esquel Group, one of Chinas leading producers of premium cotton shirts, exhibits this competiti veness as against US firms. Though cotton is also grown on American soil, efficiency and economy propels the success of Chinese firms, particularly of Esquel Group. The Esquel Groups Global Value ChainThe Esquel Group manufactures clothing for well-known and highly esteemed global brands such as Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Lands End, and Muji. They also supply