Abstract
his report is about the optical telecom value chain, and its goal is:
- An identification of the value chain structure
- The detailed analysis of each part of the value chain
- An identification of the major supplier groups
- The analysis of optical telecom perspectives
- The analysis of the value chain profitability
- An identification of the suppliers non-profitability cause roots.
For each ingredient of the value chain we performed the identical analysis to identify its
structure and current trends. This allowed an identification of promising directions.
Porter first introduced the term Value Chain in 1985. He defines it as a "tool for
diagnosing competitive advantage" and states that a value chain "divides a firm into the
discrete activities it performs in designing, producing, marketing, and distributing its
product".
Using value chain analysis, one can understand the players in the chain to better position the
firm. The structure of value chains is dynamic. Firms could benefit from the understanding when and
why the structure of the value chain is about to shift so that they can modify their investment
decisions toward profitable portion of the chain or shift their relationships with partners as
appropriate. Another benefit for the firm to understand why the value chain shifts so that they can
stimulate the change by investing in activities, technologies, partnerships or standards that lead
to restructure the value chain in a way that would be advantageous to them.
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