The value chain in hyper competition environment

Abstract

The paper discloses value chain issues, which rise in hyper competition environment. This study presents comparision of enterprises in United states and European Union concerning value chain and provides discussion on the performance of enterprises in value chain in vaious industries. Several industries are analysed, and the results of empirical research are presented herein. The paper reveals performance of single production enterprises, single and multiple trade enterprises in value chain. The study analyses performance of both enterprises, which sell products in traditional markets and enterprises, which sell products in electronic markets, as well. Finally, the models which show how activities can add value to products and services delivered to the customers in electronic market ar presented. A new Theoretical model, where the benefits and costs of each value chain activity is analysed, have been provided. This model based on the discounted cash-flow method. The study assesses practical application of the theoretical model. Finally, it is foreseen that the model can be used by enterprises, which sell and purchase goods of material shape in electronic market or have such aim.