Global Value Chain Case Study

As described by Kaplinsky and Morris (2001), a value chain can be defined as “the full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to the final consumer and final disposal after use”. The study in the value chain sector will improve the attempt to understand the distribution of power and value in the chain and to be able to address the agency of workers and small producers (Mitchell and Coles, 2011:11).
According to Kaplinsky (2004), the following key elements are important in value chain which need to be recognized and which transform a heuristic into an analytical tool:
• “Value chains are repositories for rent, and these rents are dynamic
• Governance

Albeit the concept is relatively similar, global value chain distinct because its activities that spread over international borders and not constrained within one country (Mitchell and Coles, 2011:11). However, producers in developing country often face important barriers in order to fulfil quality, standards and regulations in international market. Several authors, notably, De Janvry and Sadoulet (2005), Daviron and Gibbon (2002) and Reardon and Barret (2000) have described that lack of institutional and infrastructural support, availability of resources and efficient and effective coordination in value chain often hinders producers and smallholder farmers to increase their bargaining position in the value chain (Trienekens,

Meanwhile, Grunert et al. (2005) characterized the market orientation of the actors in the chain includes these key points: intelligence generation referring to current and future end-user needs; dissemination of this intelligence among the actors; and the responsiveness of the actors towards the needs of the end-user (Grunert et al., 2005:430). The characteristics of the end-market will likewise bear upon the activities carry out by the actors along the value chain. Knowledge and willingness to comply with the demands in the value chain’s end-market, thus will be conditional to participation in high value adding value chains (referred to Grunert et al., 2006). For this cause, the key condition for the inclusion of producers in the value chain is access to market information and the power to translate it to market intelligence (Trienekens,