Page 61 - Electronic Commerce

Chapter 1

36
Logger cuts
down tree

Sawmill converts
logs to lumber

Lumberyard (distributor)
provides selection of lumber

Chair factory
assembles chair

Furniture retailer
markets and sells
chair

Consumer
purchases and
uses chair
Learning

Landfill or Cengage
recycler disposes
of chair 2015
©
FIGURE 1-10 Industry value chain for a wooden chair
Each business unit (logger, sawmill, lumberyard, chair factory, retailer, consumer,
and recycler) shown in Figure 1-10 has its own value chain. For example, the sawmill
purchases logs from the tree harvester and combines them in its manufacturing process
with inputs, such as labor and saw blades, from other sources. Among the sawmill
customers are the chair factory, shown in Figure 1-10, and other users of cut lumber.
Examining this industry value chain could be useful for the sawmill that is considering
entering the tree-harvesting business or the furniture retailer who is thinking about
partnering with a trucking line. The industry value chain identifies opportunities up and
down the product’s life cycle for increasing the efficiency or quality of the product.

Copyright 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.