RATIONALE FOR EFFECTIVE SOLUTIONS IN THE CONTEXT OF LIGHT INDUSTRY ENTERPRISES STRATEGIC COST MANAGEMENT BASED ON THE VALUE CHAIN ANALYSIS
Keywords:economic activity, enterprise, cost management, profitability, strategic management, value chain
The paper offers argument-based provisions in the application of value chain analysis for making effective decisions on strategic cost management of light industry enterprises, revealing the essence of the value chain concept as well as its specifics in the light industry sector. The key steps in value chain creation for light industry enterprises are suggested along with identifying the methods to gain competitive advantages for enterprises of consumer goods industry. Corporate strategy implications to increase profits are provided. The value chain components for core activities of light industry enterprises are demonstrated. The study also presents a clear methodology to increase profits in the context of value chain model application. The case of the return on assets per unit of light industry output together with profit creation within the value chain is discussed. A matrix of the correlation of market size expansion and market share is displayed.