The Effect of Value Chain on Competitive Advantage: The Case of Dire Dawa Food Complex Share Company in Dire Dawa, Ethiopia.
Year: 2025
Type: article
Abstract: The key element in determining whether a company will survive is its ability to compete. As a result, a variety of factors, the value chain being the fundamental one, affect a company's ability to compete. The typical Dire Dawa food complex customer is very price sensitive because there are great substitutes on the market and consumers have little purchasing power. As a result, customers can only buy products from well known companies in the sector, which makes less competitive firms perform badly due to a lack of competition. This research investigates the relationship between value chain activities and competitive advantage within the Dire Dawa Food Complex (DDFCSC), operating in a highly competitive industry. The study aims to provide insights into how specific value chain components, including transportation, warehousing, and inventory control, influence the organization's competitive position. Data was collected through a questionnaire-based survey administered to 72 employees, representing various positions and educational backgrounds within the organization. Descriptive analysis revealed a strong competitive advantage for DDFCSC, with effective warehousing practices, but areas for improvement in inventory control and transportation. Regression analysis demonstrated a significant positive effect of warehousing on competitive advantage, while the effects of inventory control and transportation were not statistically significant. These findings contribute to the understanding of value chain management's impact on competitive advantage in the food industry, offering valuable insights for the DDFCSC management to enhance their competitive position through optimized operations and strategic initiatives.
DOI: 10.20372/nadre:19209
Author: Selemun Weldedawit Gebreagziabhier
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7083675227
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