Value chain analysis is important in this era of rapid globalization because it plays a key role in understanding the need and scope for systemic competitiveness
(Kaplinsky and Morris, 2003). By analyzing and identifying its core competencies, a firm is led to outsource those functions where it has no distinctive competences. By
mapping the flow of inputs—goods and services—in the production chain, a firm could determine who else’s behavior plays an important role in its success.
