The Smart Products Value Chain

Adriana Ungureanu ()

Academic Journal of Economic Studies, 2018, vol. 4, issue 2, 146-151

Abstract: The commercial niches cover national and international levels and should guide to responding the special human needs. For a value chain integration, a huge effort is dedicated to aware the idea or the concept in front of those who could be interested in. The separation of each type of activity follows the result of each segment and it leads to design the landscape of the revenue for every part. Sometimes the results are not in terms of money, they can be even entry barriers. This paper presents a case study as an example of integration for the first Romanian smart fabric SIDMAT 3 in an international value chain. The purpose of this research is to design the value chain for this smart-product. The cost calculation was helpful to catch the added-value during the production process. By collecting data directly from the company, the value chain was configured and the company position could be identified. To get a complete view of SIDMAT 3 market, we fulfilled information using the five forces Porter’s model. This analysis reveals that the position of SIDMAT 3 is strong now, but the geo-political context and the raw-materials supply could affect the success of this business. New discoveries could lead to new a competitor that is why the company concentrates all the efforts to develop the research activity. The position of SIDMAT 3 into the value chain could be affected by the raw materials (the most part is brought from abroad). Another weak point is the dependence on strategic customers, but generally this is a feature for a niche product. The integration of the SIDMAT 3 in the value chain is an example difficult to be followed, because it was a result of a chance to be in the right place and meeting the right people since it supposes a very difficult collaboration activity to be managed. Finally, the technology is the key that reconfigure the international market. When the advantage seems invincible, this is for a short time, since new discoveries can threat the company’s position into the value chain.

Keywords: Value chain; competitiveness; smart products; Porter?s model (search for similar items in EconPapers)
JEL-codes: L67 L69 M11 O32 O33 (search for similar items in EconPapers)
Date: 2018
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