This study addresses strategic issues related to the question of " how can a supply chain become more competitive?" We examine several cases of manufacturing supply chains. Results show that each constituent firm is required to maintain different manufacturing capabilities and to play different roles by its position (up/mid/down-stream) in a chain. Furthermore, there are patterns of required capabilities by the positions in a chain. These findings imply that the "position in a chain" should be treated as one of the strategic factors when discussing the buyer-seller relationship. It is also shown that different action programs are required for building different manufacturing capabilities of individual firms in a supply chain. Additionally, we argue that some programs need to be done simultaneously, by all the members of the chain, while some need to be carried out by only a small group or an individual firm. Finally, we propose a direction for a theoretical framework for analyzing supply chain structures and strategies.