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How to use the value chain theory to analyze corporate strategy and strategic control?
The basic idea of "value chain" theory is that not every link in an enterprise's many "value activities" creates value. The value created by an enterprise actually comes from certain specific value activities along the value chain; these value-creating activities are the "strategic links" of the value chain. The advantage of an enterprise in competition, especially the advantage that can be maintained for a long time, in the final analysis, is the advantage of the enterprise in some specific strategic value links of the value chain. The monopoly advantage of the industry comes from the monopoly advantage of some specific links in the industry, and by seizing these key links, the whole value chain is also seized. These strategic links that determine the success or failure of business operations and benefits can be product development, process design, marketing, information technology, or recognize the management, etc., depending on the different industries. In the high fashion industry, this strategic link is generally design capability; in the cigarette industry, this strategic link is primarily advertising and public **** relations strategy (i.e., how to deal with various governmental and consumer organization smoking cessation efforts); and in the restaurant industry, this strategic link is primarily the choice of restaurant location.

Although, as mentioned earlier, different industries have different value chains, and the role of the same link in each industry is not the same, but for large-scale enterprises, such as multinational corporations can be through the key links in the value chain, that is, the core competencies of the diffusion of the relevant industries in the relevant industries and transplantation, so as to enhance the competitive advantage of enterprises, especially multinational corporations. In their international marketing activities, TNCs have the economy of scope effect of global cross-industry marketing. This economy of scope effect is the multinational corporation through the optimal breadth (scope) of the use of generic elements and resources and obtain. Such generic factors can be generic production equipment, management experience, marketing skills and research and development capabilities. Since the existence of generic elements can be found in almost every link of the value chain, when the key link in the value chain, i.e., the core competence, of two industries requires the same generic elements, the MNC spreads its core competence in one industry to another related industry, which transforms the economy of scope effect into an economic advantage of scope. Therefore, the advanced knowledge, experience and skills acquired by TNCs in marketing and communication activities in one industry can be transferred to other related industries without great additional investment. For example, Phillip I. Morris Company of the United States is a famous tobacconist, creating such global cigarette brands as Marlboro. After entering the food industry, the company brought in its superior advertising, marketing and promotion and other marketing communication skills, which enabled brands like Miller Beer to quickly become leading brands in the United States and the world as well.

When a multinational corporation engages in global marketing, economies of scope advantages can in turn be simultaneously transferred to newly entered country-specific markets. According to the country's specific market environment, multinational corporations systematically select the relevant industry products successively into the market research, promotional techniques and *** with the formation of channels and other aspects of the scope of the economic effect, especially the synergistic effect of promotional behavior on the establishment of multinational corporations in the local image of the whole has important strategic significance. For example, Philips has introduced a wide range of products in lighting, microelectronics, computer hardware, household appliances and other related industries in many countries, including China, and has used the same advertising slogan, "Let's do it better", making the company's image very distinct. Despite years of poor performance, research shows that Philips is much better known in the Chinese market than its stronger competitors such as General Electric. Other multinationals in the consumer goods industry, such as household detergents, consumer paper products, personal care products and food and healthcare products, have been introduced in the same way in all markets, which are examples of the economies of scope that multinationals have achieved.

It is clear that the key to maintaining a firm's monopoly advantage over a particular product is to maintain monopoly advantage over the strategic links in the value chain of that product, and it is not necessary to maintain monopoly advantage over all value activities. Strategic links should be tightly controlled within the enterprise, while many non-strategic activities can be contracted out through contractual means, utilizing the market as much as possible in order to reduce costs and increase flexibility. Monopolization of strategic segments can take many forms, including monopolization of key raw materials, monopolization of key talents, monopolization of key sales channels, monopolization of key markets, and so on. For example, in many industries relying on special skills competition, such as advertising, performance, sports, this monopoly advantage usually comes from the monopoly of a number of key talent; in many industries relying on the product characteristics of competition, this monopoly advantage often comes from the monopoly of the key technology or raw material formulas, such as the formula for Coca-Cola, McDonald's "Big Mac" hamburger special seasoning. The formula for Coca-Cola, McDonald's "Big Mac" hamburger special seasoning formula, are top-secret level trade secrets. In the high-tech product industry, this monopoly advantage usually comes from the monopoly on a number of key production technologies, for example, the monopoly on the chip production technology of computers has created the global chip giant IN-TEL Corporation. Microsoft, on the other hand, has unrivaled innovation in the field of computer software. Since its establishment, P&G Guangzhou has taken "world-class products, beautify your life" as its business philosophy and set up the image of "P&G, quality products". In order to maintain the concept of quality products, the company uses more than 100 professional and technical personnel all over the world, and spends 8-10% of its sales (about 500-700 million yuan) on specialized product research every year. P&G believes that only by continuously developing product functions and improving the content of science and technology can it capture the market. Quality product concepts are not equivalent to national and industry standards. In order to develop a quality product concept, P&G spends 1-3% of annual sales on various aspects of market research, in P&G's words, quality products must be consumer contract products, product core functions and peripheral functions have become to meet the needs of consumers.

The above sorts of monopolies built on strategic aspects directly related to the product are sometimes easy to understand. What is less well known are the monopoly advantages of the various buildings in the "ancillary value-added activities" of the value chain. Here we will try to discuss the monopoly advantage of International Business Computers (IBM) in the organizational structure, IBM's dominance in the world computer market, to a large extent, comes from the strong organizational system formed by the layout of IBM's value chain, which was developed in the long-term process of designing, producing, selling and repairing large-scale commercial computers. As far as the production of personal computers is concerned, IBM is quite backward; none of the key production technologies for personal computers are in IBM's hands. However, IBM's worldwide organizational structure and maintenance service network, as well as over the years to build up a "high quality service" reputation is difficult for other companies to reach. Although IBM does not produce any key components of personal computers, marked with the IBM brand of personal computers used inside the original device are IBM to other companies to purchase, but IBM brand personal computers are still favored by consumers, the price is higher than a variety of other quality of the same "miscellaneous" computer. Here the reason lies mainly in, IBM's reputation and global sales, maintenance, service organization system, for consumers to provide the purchase of technically complex products is extremely need for quality assurance. Because of this quality assurance is a strategic link in the value chain of personal computer production and marketing, and IBM has a monopoly advantage in this link, which makes no production of personal computers IBM has become a pivotal industry giant in the personal computer industry.