Global Value Chains in the Time of Geopolitical Turmoil. The case of Home Appliances Industry

Abstract

The aim of this thesis is to investigate the impact of geopolitical tensions on the Global Value Chains. In order to adopt a more practical approach, the phenomenon will be examined with a particular focus on its impact on the Global Value Chain of the home appliances market, using the De' Longhi Group as a case study. The thesis is divided into three chapters. The first chapter provides a historical analysis and overview of the evolution of globalisation to the present day. It emphasises that the globalisation process has not been a homogenous phenomenon as geopolitical tensions have a strong impact. Furthermore, globalisation has amplified inequalities leading to “winners and losers” in the process. The second chapter of the thesis examines the impact of geopolitical tensions on international trade, the deglobalisation debate and the role of technology in the development of new business models that can withstand geopolitical shocks. It seems that, despite some tensions and difficulties, global trade is still on a growth trajectory. In addition, will be discussed the real risk of phenomena such as GVC reshoring and the possible threats and costs. The final section of the chapter will discuss the infrastructure and digital technologies that facilitate the adaptability of global supply chains and enable firms to thrive in volatile environments. Finally, the third chapter of this thesis takes a more practical approach. It discusses the impact of globalisation and geopolitical tensions on GVCs in the household appliances market. In particular, thanks to my current work experience, which started in 2020, I can present De' Longhi Group as a case study. As the company has built its success on the Global Supply Chain concept. The analysis will focus on how the Group manages the various market externalities, especially in light of the recent tensions in the global framework. The Group's success is closely linked to the interaction of several key factors, including organisational culture, technological progress and the strategic time horizon of decisions. In particular, the importance of a flexible, collaborative and technologically advanced global supply chain.