As international trade makes us see brands
In recent years, international trade has changed dramatically, influencing the way large companies operate and develop. For a long time, companies distributed the production and design of a product in a specific country. However, over time it was discovered that if a company distributed its operation in different places, the benefits would be higher, as it could access a cheaper labor and reduce production costs. Consequently, global value chains arose or known by its acronym as CGV and are recognized for being the “set of activities necessary for the production of a good or service, and that are carried out in different geographical locations”. Obviously, global value chains represent an opportunity and advantage for companies, since they reduce production costs and increase competition. In addition, it has been shown that global value chains generate positive economic effects in countries where they are established, since being part of a global value chain is more likely that the economic growth rate will increase.
The use of global value chains has been disseminated throughout the world, and have been used by different industries, including the mechanics industry, textiles, footwear, technology, among others. Despite this, companies that are dedicated to the production of electronic devices have highlighted thanks to the use of CGV. Currently, two companies that stand out in the technological field are Samsung Electronics and Apple Inc. who in recent years have been placed among the first three places in cell phone manufacturing industries. In short, the use of global value chains facilitated the success of Apple Inc. and Samsung Electronics.
Apple inc. It is one of the most recognized companies worldwide for its designs and products such as the iPhone, iPad, iPod, among others. However, few people know the process that these products entail. For an Apple Inc product. It can be elaborated, it is necessary that it supports suppliers located in 43 different countries, on 6 continents. This process can be summarized in 3 basic steps. The first step begins with the design in California. Then, the technological elements of different parts of the world are recovered, and finally, the assembly is ended in China. In short, the use of global value chains facilitated the success of Apple Inc., since it allowed him to develop a more efficient and specialized process in the exclusive products to which they are dedicated. In addition, when using Apple Inc CGV. It was located in strategic places, which avoided the scarce of its supplies and the dependence of other companies. It is important to mention that the use of CGV, by Apple Inc. They benefit third parties, since the prices of their products are reduced and increase the income of the countries where it is located.
On the other hand, Samsung Electronics is a company dedicated to the design and production of electronic products, and is recognized for being one of the most successful electronic companies. Currently, it has more than 2,500 suppliers around the world and makes use of global value chains as a means of production. Samsung Electronics states that through the use of global value chains they have ensured “a competitive advantage of costs, delivery, quality, technology and human resources to maximize synergy, speed and efficiency with our suppliers and create a corporate ecosystem that allows growthsustainable". In short, the use of CGV facilitated the success of Samsung Electronics, since this allowed them to grow and facilitate the benefits to the company, suppliers and consumers.
In conclusion, global value chains have evolved international trade, benefiting companies and countries that are involved. In addition, in the case of Apple Inc companies. and Samsung Electronics The use of CGVs have facilitated their success because they have supported specialized suppliers to a lower production cost, which in the long term results being benefit to the company and the consumer. Also, other factors that benefit and favor the success of these companies is productivity and competitiveness, since they increase through CVG.
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