McGraw Hill
Trade strategies that work
Vinod Sharma
Director Cedis
is no longer a stand alone measure of one single enterprise. Companies
do not compete, supply chains
do. Competitiveness of
an entire ecosystem is
more a reality than
individual company
competitiveness."
ValueMagics
a set of practice-based,
robust tools on trade promotion
with a single-minded focus
on results and impact
. . . . guides companies to competitiveness. Most have been playing in the cost business for too long. It is time to think "value"
sector competitiveness through market driven trade policies and strategies. Focus is on developing what sells rather than promoting what is made
Eduardo Egas, former Minister of Production, Vice-Minister of Trade, President of Corpei, Ecuador: "What strikes me in ValueMagics are the clear definitions used. ValueMagics demystifies terms we often use with different meanings"
ValueMathics
ValueMagics
ValueNomics
COST
Reference to
competitiveness assumes
cost competitiveness only
Hence, it forces us to focus
on the competition
VALUE
We do not make buying decisions based on cost alone. Value competitiveness brings the focus -rightly so-
on the customer
VALUE vs COST
PAST PRESENT FUTURE
COMPETITIVE
ADVANTAGES
COMPARATIVE
ADVANTAGES
VALUE
ADDED
COST OF
RESOURCES
COST
PRICE
SALES
PRICE
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
THE METHODOLOGY
Comparative and competitive advantages make up for the value proposition of a firm. While the comparative advantages are important for cost competitiveness, the competitive advantages make up for the value creation, the driver for the purchase decision.
CUSTOMER
BENEFITS
CUSTOMER
SACRIFICES
PAST
- Dawn of technology in production/service development
- Post-war demand drives mass production
- Production close to raw materials or markets
- Closed border economies and seller's markets
- Small scale production with personal service
PRESENT
- Demand for unique products and services
- Outsourcing/relocation to low cost countries
- Relocation of production spurs global logistics
- Global competition and "me-too" offerings
- Off shore helpdesks, IT-emancipated customers
FUTURE
- Proliferation of knowledge; decay of IPR
- Smart manufacturing in a post-globalization era
- Carbon foot print and "buy locally"
- One-to-one precision marketing
- Pre/after sales service as drivers for purchase
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
MINDS
MONEY
MAN POWER
MACHINES
MATERIALS
DESIGN
QUALITY
SPEED
IMAGE
SERVICE
PRICE
TIME
CHANGE
RISK
CONFLICT
Value add over time
VALUE
COST
"Competitiveness . . .
TECHNOLOGY
CEDIS offers methodologies and tools in
- Global value chains impacts and implications
- Trade support consultancy
- International Trade Policies
- South-South Trade