| LPG filling industrial sector as primary economic activator for national development programs, always grows significantly for every year. This growth begun by government policy. PT AGE is an lpg filling provider who operate in Majalengka area,facing competition in the industry the firm has to have proper competitive advantage. This competitive advantage can only be obtained by managing activities within the firm well and fit the strategy applied in achieving company’s vision, mision, and objectives. The objective of this research is to make deep analysis of how PT AGE manages activities within its firm value chain. This is important because through value chain analysis, the activities that have and have not contribute value added to firm’s competitive advantage can be identified. By doing this analysis, how the firm’s resources be integrated to be competitive advantage can be seen as well. The result of the research shows that PT AGE has some strengths that become source of competitive advantage, but there are only three competitive advantages that are distinctive competencies. These distinctive competencies are production skill to result in economies of scale, strong marketing, and excellent services. These competitive advantages are obtained by applying integrated low cost and differentiation strategy, with emphasis on low cost. |