The Deconstruction of Value Chains

By Carl Stern

The end of the last century saw the construction of the vertically integrated value chains that came to define modern business. The end of this century is witnessing their deconstruction. Markets are intruding on the web of proprietary arrangements that have held these chains together. As they do so, the boundaries defining businesses, companies, and industries are coming under attack—radically transforming the nature of competition. New concepts of strategy and organization are required in order to cope.

The Deconstruction of Value Chains

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