Policies and Strategies of Procurement and Contracting - Assignment Example

The outdoor sports stores REI might try to use certain strategies at the time of selecting the sources of supply, suppliers, market place and competition.

Sources of supply: To satisfy the changing needs of the individual, the maximum extent of the entrepreneurs of outdoor sports stores REI try to offer the best products. Only then, the level of satisfaction rate of the customers might get enhanced thereby amplifying the rate of dominance in the market. However, to do so, the entrepreneurs desire to analyze the psychology and perception of the customers through vivid market research and competitor orientation policy. After doing so, the sources of supply are determined by the entrepreneurs of outdoor sports stores REI’s, to attract a wide range of customers towards it and to retain them for longer periods among others (Drummond & Ensor, 2006).

Not only this, but by market research and customer orientation, the risk of switchover costs might be reduced which may prove extremely effective for the organization in the market among other rival players.

Suppliers- As per contracting policy, the suppliers might be selected after signing the document of placing the orders exactly in time and also with exact materials. If the specified period gets delayed then, the entire order of products might get canceled along with the contractual document as well. Then, the suppliers may not be offered any sort of orders that might hamper the entire productivity and profitability of the organization. So, the suppliers are selected extremely consciously to retain them for a longer period (Christensen, 2003).

Market places- the market places are selected based on the geographical distribution of the area. This is because, if the range of buyers is high, then the rate of sale might also be increased thereby amplifying its total profit margin as well. Similarly, if numerous mass markets, supermarkets, or hypermarkets are present in the region then also, it might prove effective for the organization selling outdoor sports materials. This is because; at the time of purchase decisions, the family members might get involved which may enhance the level of sales and profit margin. This might help in enhancing the demand for the products thereby amplifying its image and reputation in the market among others (Bradley, 2007).

Competition-In order to enhance the rate of competition, the entrepreneur of outdoor sports store REI might try to offer exclusive designs and innovative features within its products. Only then, the customers get fascinated with the brand thereby enhancing its popularity in the market among other rival players. Read More