A industry value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product for the market.
In industry value chain five factors are important.Those are supplies,manufacturers,distributors,retailers and customers.
E-commerce
offers each of the factor in an industry value chain new opportunities
to maximize their positions by lowering costs or raising prices for this it reduces the cost of information.manufacturers can reduce the costs they pay for goods by
developing Internet-based business to business exchanges with their suppliers. Manufacturers can
develop direct relationships with their customers, bypassing the costs of
distributors and retailers. Distributors can develop highly efficient inventory
management systems to reduce their costs, and retailers can develop highly
efficient customer relationship management systems to strengthen their service
to customers. Customers in turn can search for the best quality, fastest
delivery, and lowest prices, thereby lowering their transaction costs and
reducing prices they pay for final goods. Finally, the operational efficiency
of the entire industry can increase, lowering prices and adding value for
consumers, and helping the industry to compete with alternative industries.
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