...Analysis of the Online Business in Supply Chain Management and Marketing Strategy by © Renjie Wu __________________ 2011 Student Number: WU_11340881 Tutor: Dr Luca Lo Sicco Table of Content |Chapters |Pages | |Abstract |3 | |I. Introduction |4-6 | |1.1 Introduction of online business |4-5 | |1.2 Current situation of online business and the reason for this issue being raised |6 | |II. Research significance of Pattern changes in terms of Supply Chain Management in Fashion industry. |7-9 | |2.1 Definition and the importance of Supply Chain Management |7 | |2.2 Recent changes in Supply Chain Management in retailers under the impact of online business booms |8-9 | |2.3 Identify the advantages and disadvantages of the changes. |9 | |III. Research the Marketing strategy and Analysis |10-15 ...
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...Introduction In examining, the case study on Crocs; it displays an overview of the company’s objectives in operations to include the supply chain. This examination reveals the success behind how the company thrives in times when others are unable. Part of Crocs leading objectives and primary function is to reinvent the supply chain to provide less shortages and increase awareness and customer satisfaction. This paper will outline a brief overview of company history, Crocs two primary core competencies and in which manner do they exploit them; continued evaluation will cover vertical integration, acquisition, or product extension growth. Further discussion consists of company production and inventory as well, as how margins affect their decisions. History and a Foundation for Core Competencies Lyndon Hanson, Scott Seamans, and George Boedecker created Crocs, INC. in 2002 out of Boulder Colorado. The idea came from a trip taken by the three, where one of them had purchase a pair made from a company out of Canada. The decision to start a business selling the shoes was realized after they leased a warehouse in Florida; when sales took off, they contacted Ronald Synder a college friend who which was employed for Flextronics (electronics manufacture) in an executive position. The addition of Snyder was positive as he helped invent their supply chain strategy (Schroeder, Goldstein & Rungtusanatham, 2011). In historical industry practice, it was commonplace to build orders for...
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...For years Barilla was successful in selling their brand of fine pastas but when a shift in demand for products resulted in items being sold out, Barilla tried to operate like a responsive supply chain which did not work for this functional product. Based on Fisher’s 2x2 model Barilla’s supply chain should be run as a functional product with an efficient supply chain. Barilla should run a more efficient supply chain which can be achieved through the use of the Just-In-Time-Distribution (JITD) program; effective communication with the distributor will allow Barilla to retailers with proper stock of goods through more accurate forecasting and sales data. The critical elements of the JITD program employ the use of distributors’ shipment data to send only what is needed to the retailer. Each day the distributor will provide information on what is shipped to retailers and current stock levels of each location; essentially the manufacturer would co-manage the inventory with the distributor. By implementing the JITD program the suppliers would receive the right amount of product due to Barilla’s ability to improve their forecasting through current sales data and provide the necessary product to the distributor. They would also be able to manage the shelf-space and material distribution through the use of vendor-created delivery schedules. This program takes the pressure off the distributor to hold inventory they didn’t carry and increase the stock of items they already had. The JITD...
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...stage in the value chain. Using the Mckinsey generic value chain, we have the following stages: Technology Development - Product design – Manufacturing – Marketing – Distribution - Service Technology development: This can also be referred to as Research and Development. Vodafone places a lot of importance on this because the company has achieved economies of scale with this. The technology and infrastructure platform is replicated in all the countries of operation , it is known that sharing fixed costs across all countries of operation can contribute to cheaper operations. Setting up a service centre in India is which is central to the group operations also helped in achieving economies of scale. Product Design: Vodafone’s products are technology based and so product design is linked to technology development. The fact that the company designs their products ensures that they determine the functionalities, characteristics, aesthetics and quality. Manufacturing / Distribution: This can be closely linked to Vodafone’s supply chain. Network construction and maintenance is outsourced particularly in emerging markets like China and India. Purchase of equipment, software and handsets are centralized and economies of scale has been achieved through this because the company strikes direct deals with the manufacturers of the various products. Vodafone sits at a pivotal position in the supply chain linking the end consumer with a complex pyramid of supply. The company sources...
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...access to European markets. Maintaining this relationship is the third strategic objective. In short Eldora needs to find a way to succeed in the growing Asian market while keeping their manufacturing costs competitive without damaging their relationship with Rinaldi. In order to achieve these objectives, Eldora should strongly consider one of two options. Either they should move only their manufacturing to reduce labor costs or they should move their marketing and product development teams along with manufacturing. The reason to move all three departments is because it allows Eldora to maintain their competitive advantage of a lean, flexible manufacturing system created by the proximity of those three departments. Modern communications reduce the inefficiency of maintaining distant operational centers but it isn’t eliminated. Eldora would likely be better served by physically separating manufacturing from the other two departments and off-shoring manufacturing without making any unnecessary changes to the marketing and engineering departments. While their manufacturing system may have given them a competitive advantage, their true core competency...
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...Private label competitors had gained over 21% of the frozen food market. The increase of stiff competition drove prices down and lowered profitability for Birds Eye. A huge factor in loss of profitability and market stronghold was their internal strategy. The company’s vertical integration strategy worked for in the beginning to initially strengthen their brand, but lost its performance during the 1970's and 1980's. Due to the rising costs of producing frozen foods in the 1970's, and increasing market competition, the company needed to shift to a more horizontal strategic approach. Analysis Value Chain Birds Eye value chain was the chain of activates that it was operated on. The chain of activities gave them more value to its service and its products until early late 1960’s. The primary activities for Birds Eye were inbound logistics, operations, outbound logistics, marketing...
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...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
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...1. INTRODUCTION 1.1 DISTRIBUTION Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. 1.2 DISTRIBUTION CHANNEL It is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones. Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. Distribution channels are probably the most visible aspect of any company’s marketing efforts. A recent estimate puts the number of retail out lets in India at 5 million. The retail industry provides livelihood to more than 15 million people in the country. If one included in this the number of distributors, wholesalers, agents including the army of life insurance agents,...
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...International Food and Agribusiness Management Review Volume 14, Issue 2, 2011 Agricultural Value Chains in Developing Countries A Framework for Analysis Jacques H. Trienekens Associate Professor, Wageningen University-Management Studies and Maastricht School of Management Hollandseweg 1, Wageningen, The Netherlands Abstract The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain- network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain. Keywords: Developing country value chains, research framework, upgrading Corresponding author: Tel: + 31 317 484160 Email: Jacques.Trienekens@wur.nl 51 2011 International Food...
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...MKT 421 Week 5 Map the Supply Chain Paper Name University Map the Supply Chain – Introduction Supply chain logistics is a fundamental component of the global economic system. Goods can change hands from a variety of different global companies, which some form of value being added at each stage. In the context of marketing, the following paper will map the supply chain of the solar panel industry. This is a growing industry that has seen a massive amount of growth over the last 10 years. Each major piece of the supply chain will be outlined in detail, which includes the manufacturer, distributer, and retailer. Manufacturer Solar panels are an alternative energy source that is used for a variety of applications in commercial and residential settings. The majority of panels are manufactured overseas where companies can take advantage of lower labor costs. Under the direction of U.S. based firms, the typical supply chain of a solar panel company may include the following roles. * Designs the technical layout and schematics of the solar panel. * Tests safety of technology before wide release. * Sources raw materials, such as aluminum and silicon diodes. * Creates branding to backup the quality of the product. * Improves product designs based on customer feedback. * Ensures panels meet environmental compliance regulations. Some of the largest solar panel manufacturers include First Solar, Sun Power, and LDK Solar. These brands compete with each...
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...Ch10 Marketing Channels Supply Chinas and the Value Delivery Network Upstream: Supply raw materials, components, parts, information, finances, and expertise Downstream: Marketing channels towards customers, including wholesales and retailers, * Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value The Nature and Importance of Marketing Channels Marketing Channel (Distribution channel): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user * Affect every other marketing decision * Use imaginative distribution systems * Involve long-term commitment to other firms How Channel Members Add Value * Give up some control over how and to whom to sell products * But they create greater efficiency in making goods available to target markets by better contacts, experience, specialization and scale of operation * Intermediaries reduce the amount of work by both producers and consumers * Transform assortments of products made by producers...
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...covering on 3 topics : Supply Chains and Marketing Channels, Strategy and Value Proposition and lastly, Marketing activities using the Business Marketing Mix. We will be comparing the 5 companies based on the above topics, discussing their similarity and differences and derive our analysis in the following report. The 5 companies are as follows: 1. i-Qlick Marketing Co. Ltd. is a authorized agent for all Canon products such as; printers, cameras and calculators. They help Canon in distribution and also to provide after sales services 2. Glow Marketing Pte Ltd is a marketing firm which specialises in Food & Beverages (F&B) marketing. An example of their service is planning of marketing campaigns. 3. Richland Logistics Services Pte Ltd is a Third Party Logistic (3PL) service provider, provides services such as distribution management and warehousing. 4. Taskcon Enterprise Pte Ltd is a IT service and solution provider. They provide IT related services such as network sercurity, to businesses. 5. Gilead Sciences Singapore Pte Ltd is a biopharmaceutical company that focuses on research for new medication for illness and diseases. Overview of the 5 companies Name of company i-Qlick Marketing Co. Ltd. Glow Marketing Pte Ltd Richland Logistics Services Pte Ltd Taskcon Enterprise Pte Ltd Gilead Sciences Singapore Pte Ltd Company's size SME SME SME SME MNC Industry Type Electronics Marketing Consultancy Logistics...
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...one. With any new acquisition changes will have to be made and they can either be beneficial to a respective industry or have adverse consequences. Kudler Foods is currently in the position to acquire a company which can have both positive and negative effects. In pursuing a vertical merger Kudler Foods will be in position where they will have an increased market share that places them in a position of reduced competition. Current consumers may not necessarily be attracted to this format, however, through new marketing tactics they can attract new consumers and target a broad demographic and also drive in more profits. If Kudler Foods proceeds with this merger it will allow this establishment to put in to play a new strategic direction. One of the benefits of using this strategic business method according to "More-For-Small Business.com" (2002), “it provides you with efficiencies related to economies of scale (from production, inventory, purchasing, sales and marketing, administration perspectives and more)” (vertical merger). Kudler Foods can benefit and exceed in this merger and in this industry by promoting competitive prices, they will be able to add a new dynamic to their stores by having trained personnel in new products and merchandise, and offer equipment to their employees that will allow them to conduct their work in an expedient manner therefore allowing savings and synergies. If Kudler Foods decides that they will like to expand internationally a merger of this caliber...
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...decision-making than information. D) Data and information are the same. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 2) Information is A) basically the same as data. B) raw facts about transactions. C) potentially useful facts when processed in a timely manner. D) data that has been organized and processed so that it's meaningful. Answer: D Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 3) The value of information can best be defined as A) how useful it is to decision makers. B) the benefits produced by possessing and using the information minus the cost of producing it. C) how relevant it is. D) the extent to which it maximizes the value chain. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Moderate AACSB: Analytic 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits Answer: A Page Ref: 10 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 5) Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or corrects their prior expectations, is said to be A) complete. B) relevant. C) reliable. D) timely. Answer: B Page Ref: 5 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 6) Information that is free from error or bias and...
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...Worksheet (DW#8): Delivering the Value for Distribution Channel Strategy 1. Value Creation: The performance of actions that increase the worth of goods, services or even a business. Many business operators now focus on value creation both in the context of creating better value for customers purchasing its products and services, as well as for shareholders in the business who want to see their stake appreciate in value. Value Delivery Network: Consists of the value chain, its suppliers, distributors and ultimately customers, all of which work together to add value to the customer. Increasingly companies are partnering with members of their supply chain to enhance the performance of the customer value delivery network. A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. To add value, the organization must be doing more for its customers than simply carrying out the ‘face value’ of the activities, otherwise customers would presumably carry out the activities themselves. Customers either cannot carry out the activities at all, or cannot match costs, or don’t want to carry on the activities and so are willing to pay others to carry them out instead. * knowhow – suppliers often use knowhow that customers simply don’t have * economies of scale – suppliers often produce efficiently in huge volumes with each customer buying only a small proportion. Suppliers’ economies...
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