Purpose – The purpose of this research is to illustrate how Outsourcing Decision should be carried out from a strategic perspective, this strategic perspective can be achieved through the integration of Value Chain Analysis (VCA) as a strategic cost management tool into the overall strategy of the organization. Then, this research aims at proposing a new framework to investigate the potential role of Value Chain Analysis in supporting Outsourcing Decision to achieve sustainable competitive advantages.
Methodology/Approach – The researcher used the constructive approach with a case study to conduct a proposed framework for the integration between Value Chain Analysis and Outsourcing Decision in the real world.
Research Scope – This study is applied on dairy industry specially DANONE company through a case study.
Importance – Scientific importance is represented in the possibility of making integration between Value Chain Analysis and Outsourcing Decision for maximization of customer value. Practical importance is presented in the role of this integration in improving the strategic orientation of firms and achieving sustainable competitive advantages.
Findings – The results of the scoring model demonstrate that outsourcing sources of dairy product packages has the greatest contribution to achieving sustainable competitive advantages