How would you advise a company like IBM or Cisco to configure and coordinate its value chain to prosper in this environment?
I'm doing a case study and the topic is "Value Chains: Where, When, and Why" - looking out over the next decade, estimate the likely standards of value creation (this was the first part) - and I gave you the question I have to respond to up top. Thanks Joelle
This is a great question. The economic situation is not great. In view of this, there are several ways to help a company like IBM or Cisco (technology companies).
First, cost cutting is a good starting point. Many companies spend way too much money without even knowing it. For example, not everyone has to fly in business class, especially on domestic flights. Also corporate functions can be toned down.
Second, to promote growth, these companies should really seek to expand overseas. The BRIC (Brazil, Russia, India and China) nations are going to lead the way in the future. Their economies are much healthier and are much better position in terms of debt.
Third, they may want to see if they can win government contracts for infrastructural ventures.