How they do it: Nike’s core competencies lie in the design and marketing of sports apparel. Hence it focuses on these steps in the value chain. Manufacturing for example is outsourced to low cost regions such as South East Asia.
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How they do it: The company produces frozen pizza, salad dressing, sauces, marinades, condiments and deli salads to be marketed by other companies as their store brand or white label brand. Thereby, it is able to focus on the manufacturing stage of the food products, and is not concerned with marketing, branding etc. As a consequence of this focus, Richelieu Foods’ average annual revenue per worker is about $900,000.
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How they do it: Groupon solely focuses on providing the online platform, bringing new coupons to it and marketing to end customers. Everything related to order fulfillment, service or logistics is the responsibility of the respective 3rd party business offering their coupon on the Groupon website.
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How they do it: Procter and Gamble focusses on an ecosystem approach to develop innovations sourced externally, by leveraging its internal core competence of developing innovations and turning them into global brands. In this approach, it can achieve economies of scale.
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