Final answer:
Best Buy is a B2C brick and click company whose value chain encompasses various industry participants, including suppliers, manufacturers, logistics, retailers, and advertisers. The product's journey from raw materials to the finished goods involves multiple countries and stages, reflecting a trend known as splitting up the value chain, which enhances specialization and efficiency. It allows intra-industry trade and economic gains from focusing on particular parts of production.
Step-by-step explanation:
To analyze the value chain of a B2C brick and click company, let's take the example of a company like Best Buy. Best Buy operates both physical retail locations and an online store, offering electronic goods to consumers. In this business, the major industry participants range from raw material suppliers and manufacturers to logistics companies, retailers, and advertising agencies.
The move from raw materials to the finished product begins with resource extraction and component fabrication, often occurring in different countries. For instance, a computer's components may be produced in various countries, such as semiconductors from Korea and plastic casings from China. These parts are then shipped to an assembly plant, which could be located in yet another country. The completed product is subsequently transported to Best Buy's warehouses, and finally to retail stores or delivered directly to consumers through e-commerce channels.
Thanks to specialization and splitting up the value chain, the process benefits from cost-efficiency and allows each participant to focus on innovation and improve expertise in their respective stage of the production.