Thesis: Value Chain Management at Shaw Industries

Sample Thesis Paper

Shaw industries are the largest tufted carpet manufacturer of the world and it’s mainly located in the United States. Shaw industries formulated a powerful strategy for its survival and growth and it was totally based on quality. The industry has little control over the quality of inputs and the entire project was based on the inputs. The entire industry was dependent on inputs and equipments like yarn, adhesives and etc were quite important in the production. The products were sold by dozens of wholesalers and by a huge number of retailers and this process were handled and managed by numerous small independent cleaners and installers. Customer satisfaction not only depends on the quality of the product, durability and etc but it is also based on direct dealings with the retailers (Berry & Rondinelli, 1998).

Shaw industries were facing stiff competition and that is why they had to differentiate its products. Lowering the price would be an ineffective strategy and that is the reason why the executives at Shaw developed a powerful strategy in the early 1990’s and they powered their value chains with the essence of differentiation. The differentiation as based on two other dimensions of quality and customer service. Shaw managed its value chain by vertically integrating the elements of the value chain. These elements include manufacturing, retailing, and service and product disposal. Shaw industries formed alliances with different channel members and they gained a stronger control over the supply and distribution of products. They tried to add value at each process and followed the strategy of environmental management (Berry & Rondinelli, 1998).

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