What Is a Value Added Chain?

Value-added chain refers to all the value-added links of the enterprise through system integration in order to create higher added value. The value of modern enterprises consists of the value chain of the real economy and the value-added chain of the virtual economy. Enterprises must develop unique competitive advantages, create higher added value, realize a series of value-added processes, integrate all links that can realize value-added, and improve the value-added chain of the enterprise.

Value-added chain

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The first link is the value-added wisdom theme. In essence, you cannot wait for the pie to fall from the sky. Enterprises must rely on human subjective initiative to create.

The second is the information link. In fact, the basic information situation is asymmetric. The question is whether the enterprise is on the symmetric advantage side or the asymmetric disadvantage side? There is a very dynamic space in the field.

The third is the futures link, which is the core of value preservation and appreciation. Futures are the pricing center, that is, pricing. The core of the concept of pricing is futures.

The fourth is the financing link. In the process of value-added, there will be many more scientific methods and more efficient behaviors. For example, in this industry, the Shenzhen Development Bank has created a financing model of warehouse receipt quality, which is to use standard warehouse receipts to finance enterprises.

The fifth is the product link. In the end, we are a carrier of value-added through the form of the product. Without this product, what we are talking about is a theoretical concept and not operational. The most important thing is from the product.

The sixth is the brand link. Of course, this brand's links have inherent capabilities after long-term value-added services. The concept of value-added chain should be understood this way.

The first is stability and balance. Many industries in China will fall sharply and assets will shrink. The reason is just to do a simple trade, a simple transaction, that is, one direction, I hold this commodity. When the price fell sharply, it naturally shrank sharply, which caused many enterprises to encounter great problems. What is the specific problem? Not very clear. Anyone who learns to use various links in the value-added chain to protect their own companies is very stable in maintaining their balance. Under the economic crisis, many companies can effectively control their own costs, and the effect is obvious. Generally speaking, how do people hedge risks in the macro economy? Positioning futures as the core financial derivative as a stabilizer is the macroeconomic stabilizer. In most cases, the car will be uneven when going uphill. Change the car to a tank during the war. There is a system, no matter how you are shaken, he always strikes the target in a horizontal way. This is also the case in the economy, and fluctuations are inevitable, but we have no way to deal with such fluctuations. For example, if I produce raw materials, I will make money when I rise, and I will lose money when I fall. I cannot control my stability. Therefore, balancing skills is an enterprise to ensure its own business, without a balancer is not enough. Competitive, we take the enterprise from the real economy value chain, forcing you to research and learn in the market, forcing you to attack. Everyone knows that if a company is not offensive, it must go backwards. It's like sailing against the water. The same is true of enterprises. Without innovation and new solutions, enterprises cannot be strong forever. This requires all our enterprises to have a strong competition mechanism, to compete, to enhance their core competitiveness through competition.

The second is proliferation. If the value-added chain cannot reach the goal of proliferation, it will fail, so it is required to work hard on value-added. Whether or not a value-added chain can be constructed is an important indicator of the core competitiveness of China's industries. In this sense, the concept of value-added chain should be a completely new concept for China's industry and the real economy. Need to understand, need to participate, need to learn. China's industrial development for so many years, encountered a biggest problem is that if you want to buy something, that thing will rise, that is, raw materials, what you want to sell will fall, so we have two sides. The price of raw materials has come down. We must find a way to digest the high raw material prices. But how long will the price of this raw material be low? The first can be seen, it will not be so low forever, and the possibility of the second long-term low is very small. Although the economy is contracting and in a recession phase, future inflation It is inevitable. Once this inflation came, when all prices returned to high levels, the original pain came again. This requires a long-term plan in which the entire resource runs at a low level. How to enjoy the benefits of this low-cycle operation of resources? This is for us to make a real deployment for the future, so we raise the third question. ^[1]

I think the value of the value-added chain is manifested in three genders. The first is stability and balance. After the National Day last year, many industries in China experienced a sharp decline and their assets shrank. what is the reason? It's just a simple trade, a simple transaction, that is, one direction, I hold this commodity. When the price fell sharply, it naturally shrank sharply, which caused many enterprises to encounter great problems. Where is the specific problem? Not very clear. Anyone who learns to use various links in the value-added chain to protect their own companies is very stable in maintaining their balance. We have seen that many companies can effectively control their costs under the economic crisis, and the effect is obvious. In our analogy, generally speaking, how do some people in the macro economy hedge their risks? Positioning futures as the core financial derivative as a stabilizer is the macroeconomic stabilizer. In most cases, the car will be uneven when going uphill, and the car will be replaced by a tank after the war. There is a system, no matter how you are shaken, he always strikes the target in a horizontal way. This is also the case in the economy, and fluctuations are inevitable, but we have no way to deal with such fluctuations. For example, if I produce raw materials, I will make money when I rise, and I will lose money when I fall. I cannot control my stability. Therefore, balancing skills is an enterprise to ensure its own business, without a balancer is not enough. Competitive, we take the enterprise from the real economy value chain, forcing you to research and learn in the market, forcing you to attack. Everyone knows that if a company is not offensive, it must go backwards. It's like sailing against the water. The same is true of enterprises. Without innovation and new solutions, enterprises cannot be strong forever. This requires all our enterprises to have a strong competition mechanism, to compete, to enhance their core competitiveness through competition. The third is proliferation. If your value-added chain cannot reach the goal of proliferation, it will fail, so we are required to work hard on value-added. Whether or not a value-added chain can be constructed is an important indicator of the core competitiveness of China's industries. In this sense, the concept of value-added chain should be a completely new concept for China's industry and the real economy. We need to understand, we need to participate, we need to learn. Everyone knows that we are in crisis now, but we say it is also an opportunity. What are the opportunities? I think China's industry has developed for so many years, and one of the biggest problems encountered is that if you want to buy something, that thing will rise, that is, the raw material, what you want to sell will fall. Now that the price of raw materials has come down, we must find a way to digest the high raw material prices. But how long will the price of this raw material be low? The first can be seen that it will not always be so low, and the possibility of a second long-term low is also small. Although the economy is contracting and in a recession phase, future inflation is inevitable. Once this inflation comes, when all the prices return to high levels, your original pain will come again. This requires us to make a long-term plan in the interval where the entire resource is running at a low level. How do I enjoy the benefits of this cycle of low resource running? This is for us to make a real deployment for the future, so we ask a third question.