Abstract:
This research objectives are: 1) to analyze the value chain analysis of andrographis paniculata herb contains in capsules of a case study company 2) to present the guidelines of upgrade the value chain of andrographis paniculata herb contains in capsules of a case study company. In this research, the population focus on the top managers, middle managers, and supervisory managers who are related to the main activities and supporting activities of value chain in the andrographis paniculata herbal medicine of the case study company. The in-depth interview is used with the semi-structured interview that is a tool to collect data. Moreover, the non-participant observation of the process and value chain analysis are to develop a guideline for upgrading the value of andrographis paniculata herbal medicines in capsules. The results of this research shown that value chain creating is present in the 5 main activities and 4 support activities in the value chain analysis of andrographis paniculata herbal medicine. Follow by the value chain analysis shown that the problem encountered in each value chain activity, it can identify four problems as follows; 1) raw material management and storage problems 2) the waste time of complex production 3) technology limitation issues and 4) the distribution channels are not diverse. These issues are a major obstacle to the efficiency of the production of andrographis paniculata herbal medicine. This research is offered the four-value chain upgrading which are 1) the process upgrading 2) the function upgrading 3) the product upgrading and, 4) the chain upgrading. These are the efficiency improvements from the receipt of raw materials, production, marketing and distribution processes. This results in outline directions is to upgrade the value chain activities that support to increase competitiveness and lead to sustainable business growth.