Value chain for expansion plan

Maximising R&D in the Company Value Chain for Expansion and Development into Transition Countries
Definitions: - R&D - Value Chain Technology & Strategy Expansion via Franchising Retail Value Chain Retail Value Drivers X5 and It‘s Expansion Using R&D for Int‘l Expansion Findings
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Research for Sustainable Development

Christine Falkenberg Taschkent May 2009

Maximising R&D in the CompanyValue Chain for Expansion and Development into Transition Countries
Definitions: - R&D - Value Chain Technology & Strategy Expansion via Franchising Retail Value Chain Retail Value Drivers X5 and It‘s Expansion Using R&D for Int‘l Expansion Findings
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‘Applied Reseach’: is ”… gaining knowledge … necessary for determining the means by which a recognized and specific need may be met [and] …includes investigations directed to the discovery of new knowledge having specific commercial objectives with respect to products, processes or services”
‘Development’: “ … the systematic utilization of the knowledge … gained from research toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes” Trend: Spending forservice-sector R&D is rising and has passed spending for manufacturing R&D, 1998: 26.5% versus 24% Types of R&D: cooperation between two firms for joint R&D, R&D consortia between competitors, federal laboratory-industry R&D collaboration, and university laboratory collaboration

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Maximising R&D in the Company Value Chain for Expansion and Development into Transition Countries
Definitions: - R&D- Value Chain Technology & Strategy Expansion via Franchising Retail Value Chain Retail Value Drivers X5 and It‘s Expansion Using R&D for Int‘l Expansion Findings
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Value Chain: concept from business management first described by Michael Porter (1985), analysis tool for strategic planning It is a chain of activities. A product or service passes through all activities of the chain in order andat each activity it gains some value. Porter distinguishes between two categories ‘primary activities’ and ‘support activities’. Each of them is linked to efficiency-improving activities or ‘support activities’ of an organization. R&D according to the value chain definition “… includes both activities related to improving the physical product or process as well as market and consumer research.”Costs and value drivers are identified for each value activity.

Maximising R&D in the Company Value Chain for Expansion and Development into Transition Countries
Definitions: - R&D - Value Chain Technology & Strategy Expansion via Franchising Retail Value Chain Retail Value Drivers X5 and It‘s Expansion Using R&D for Int‘l Expansion Findings
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Innovation and its management is a successfactor • Innovation management:...targeted implementation of e.g. new technological problem solutions, aimed at achieving corporate goals in a new way • Porter‘s contribution: - Explicit link of technology to ‚five forces‘: relations with suppliers, relations with buyers, new entrants, substitute products and rivalry amongst established firms, each of which generates opportunities and threats - Majorinfluence of home country conditions of firms’ innovation strategies in global markets • A competitive strategy aims to find a positon in an industry where a company can best defend itself against the competititve forces or can influence them in its favor • Obligatory strategy choices: Generic market strategy: overall cost leadership, product generation, cost focus and differentiation focusProduct strategy and Technology strategy Market strategy: Innovation ‘leadership’- Innovation followership’

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Maximising R&D in the Company Value Chain for Expansion and Development into Transition Countries
Definitions: - R&D - Value Chain Technology & Strategy Expansion via Franchising Retail Value Chain Retail Value Drivers X5 and It‘s Expansion Using R&D for Int‘l Expansion Findings
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