Mitiku, Shiferaw (PhD)Sultan, Zebib2018-10-302023-11-042018-10-302023-11-042017-06http://etd.aau.edu.et/handle/123456789/13481The garment industry of Ethiopia is reported to show a decline in its export performance according to the report of the Ethiopian Textile Industry Development Institute. Gaps in logistics, marketing, leadership capacity are also witnessed in the sector. Success in business depends on finding competitive advantage. With the objective of addressing the problem in the industry from the manufacturers’ value chain management perspective, and the role each functional unit plays in delivering value and gaining competitive advantage, this research was carried out on fifteen garment factories what were considered representatives on the basis of long years of experience, productivity, introduction of new technology, marketability. Primary data was collected with the help of questionnaires and personal interviews. In addition, previous research works in the sector, journals and different documents were used as a secondary source of data. The collected data was analyzed using SPSS. The study was based on the value chain model of Michel E. Porter (1985) in which the management of five primary activities: Inbound logistic, operations, outbound logistics, marketing and sales, services, and four support activities as technology development, infrastructures, human resource management and procurements were analyzed. Accordingly, the study revealed that inbound logistics, outbound logistics and firm infrastructure are seen to be well managed. On the other hand; services, technology development, human resources and operations are seen to be moderately managed. However, marketing and sales of the primary activities are seen not to be well managed. In addition, the study also explored the challenges manufacturers face in delivering value. Accordingly, problems with respect to unavailability of locally produced fabrics, accessories, packing materials, and the resulting high cost of import are mentioned as the main challenge by most of the interviewees. Manufacturers should improve their marketing activities incorporating marketing research, product design, branding, beyond the traditional way of selling their products, and develop their human resource management. Considering the challenges they face in the industry, government should work on ways of having input materials manufactured locallyen-USPorter’s Value Chain ModelPrimary ActivitiesSupport ActivitiesThesis