Purpose - The paper shows how sustainable value chain analysis (SVCA) can be used as a diagnostic tool to identify misalignment between resource allocation and consumer preferences, using a case study of the Oxford Landing wine chain, from South Australia to the UK.
Design/methodology/approach - The study incorporates a combination of value chain analysis (VCA) and life cycle analysis (LCA) in a single methodology to determine which activities, at each stage in the supply chain, create value (in the eyes of consumers) and the contribution of these activities to greenhouse gas emissions.
Findings - The case study demonstrates the value of comparing the consumer value associated with a particular activity with the emissions associated with that activity, as this draws the attention of managers, at each stage of the supply chain, to the potential trade-offs that exist and the danger of focusing on either one (adding value or reducing emissions) in isolation.
Research limitations/implications - The main limitation of the research methodology is that the study focuses on a single product (Oxford Landing) and a single chain to a single country (UK). Thus, it is difficult to generalise from the results of this single case study to the (South Australian) wine industry in general, without further information from other wineries and consumer perceptions of their brands in different parts of the world.
Practical implications - The case study highlights the importance of taking a holistic view when considering the sustainability of a product, process or chain trade-offs between environmental benefits and consumer perceptions of value can have significant commercial implications. It also illustrates the potential for SVCA to be used as a guide for the allocation of research and development expenditure (public and private) in pursuit of sustainable competitive advantage.
Originality/value - The study is the first to combine LCA with VCA in a context that allows researchers, practitioners and policymakers to identify areas for improvement, in what they do and how they do it.
- Value chain analysis
- Life cycle analysis
- South Australian wine
- Sustainable development
- Environmental management
- United Kingdom
- COMPETITIVE ADVANTAGE
- CUSTOMER VALUE