Style-inn Fabric & Clothing (SFC) is manufacturer of clothing fabrics to be made up into dresses and suits. SFC established long ago back and presently enjoys the reputation as producer of quality fabric. SFC producing fabrics from high quality synthetic yarns with all standard features which other fabric manufacturer offers. Designs of fabric are old fashioned (traditional in nature) as SFC was established long ago Management team at SFC shown believe in integration (vertical and horizontal) and diversification (product range or market reach) as tool of risk reduction and value enhancement (profit too). SFC opts for un-organic forward integration to gain control over value chain by acquiring Skylark Designer Clothing (SDC). SDC is operating in designing and weaving of fabric into fashion wears. SDC is targeting the customers who are in age group from 40 to 60 years and belongs to price sensitive income group. SFC in this way is able to reach to end consumer through retailers by manufacturing cloth themselves. Acquisition of SDC by SFC remains largely successful as result in relative high increase in sales and profits, both. Problem Point But the sale & profit are not growing at same old rate now, top and bottom line witness the slowdown, which may be due to exhaust of synergy benefits. Retail stores through which SFC sold its material also find it difficult to make reasonable amount of sale. SFC starts exploring new retailers. But due to presence of large number of supplier (of manufactured cloth), buying power of retailers is high; resultantly SFC has to rest at unacceptable low margins. you are required to draw the value Chain and explain briefly. note that Down the Line SFC is considering of acquisition of one of cloth retail chain, named Paridhaan in order to deliver fabrics to the customers directly and eliminate retailers in order to boost its profit margins