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Furthermore, this might apply if the internal expertise is not conversant with the location of the target market (Fernie and Leigh 59). This would aim at increasing the reliability, an aspect that would increase the customers’ loyalty towards the products.
The approach of developing a strategy, and then employ the specific suppliers to carry out well-defined portions of the strategy would be effective when the company knows the location of the target market, but does not have the necessary resources to carry out the supply work (Fernie and Leigh 45). On the other hand, the approach may work where the suppliers have the resources but has not specialized in information gathering. Therefore, they depend on the information given by the client.
The approach to develop the strategy with third-party logistics provider would be effective when the company has little information about logistical issues but want to be part of the supply management. In addition, it may apply when the third-party logistical companies provide warehousing and transportation services. In addition, it may apply when the firm is involved in value addition. This is to ensure that its strategy does not distort the quality of the products.
IBM needs both a private and a consortia based e-marketplace in order to be able to deal with B2B, B2C, and Online market. As a global business it’s hard to concentrate on all these logistical aspects. As a result, divulging to the two areas enables the business to reach the target market on time, while at the same time focusing on producing high quality products according to the tastes and preferences of the customers. On the other hand, the emergence of e-marketing brought a new opportunity to expand its market size. However, traditional market was still significant to the business. Therefore, the strategy has ensured that the company maintains its initial supply strategy while upholding changes brought by online platform.
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Most of the markets within the Western countries began to quickly mature and due to high level of information and choices available to the customers; they became more mature and sophisticated. It became more troublesome to persuade them as they became more demanding (Gronroos, 2004, p.
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The strategic focus, therefore, affects five critical major developments in various departments. First, it is vital to acknowledge the cross-functional boundaries that define business units used by suppliers. It means a purchasing function
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