Globalization of production and operations management - Term Paper Example

Taking a simple circumstance of the use of computers by the manufacturers and the service sector is the best example that reflects how these businesses are growing rapidly in their domains. Manufacturers and their retailers are commonly joining hands and improving their distribution channels. In this case, the manufacturers are not wholly dependable on their retailers to expand their recognition in the market and help selling their products or services; however, they have their own opportunity to do so with the use of digital computers in collaboration with their retailers.

First, the direct computer relationship between retailers and manufacturers have increased the possibility of making the manufacturers aware of the selling and purchasing of their products, while they could even collaborate directly if the products becomes short in market so that the delivery of products could be made in time with maximum customer satisfaction (Kozicki, pp.41-42). This way the manufacturers have great opportunity to have first-hand information about their consumers’ demands and can play a major part in increasing their productivity according to their target market’s interests. . The consumers always want to save their time, money and resources to visit the outlets, choose from a wide range of varieties of products and services and then to reach upon the conclusion of making a purchase or not.

In this case, the prospective buyers living abroad cannot even have the possibility of visiting the international outlets easily. Thus, E-Business provides these buyers with an opportunity to place online orders and have their desired products delivered to their doorsteps. This also increases the reach of the manufacturing industry and the service sector to buyers present outside the geographical area. The same could be done by television advertising and providing the prospective buyers a ‘universally accessible number’ to place orders.

Yet, all this demands work force on the manufacturers’ or the service sectors’ end to make these facilities available to the consumers. Yet, this advancement also brings a great challenge for the manufacturers and creates quite a conflict between them and their retailers. The retailers are their help these manufacturers sell their products through a proper visible distribution channel. However, if the manufacturers start providing an e-buying service, the business o their retailers would come to an end.

Even if it’s not an end, but, it will give a blow to their business and would prove to be a source of loss in the long run as less people would prefer going to the retail markets. This would eventually create competition between the two entities doing the same business and thus, the retailers would have to look for expandable options to increase their selling (Gupta, Koulamas, & Kyparisis, pp. 604-605). Thirdly, people interested in putting their products on auction have an unmatched opportunity