StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Developing Market Specific Supply Chain Strategies - Case Study Example

Cite this document
Summary
The paper "Developing Market Specific Supply Chain Strategies" tells that organisations have resorted to effective supply design as one way of surviving in this competitive environment. The ability of a company to roll out its products depends on its ability to maintain design effective supply chains…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Developing Market Specific Supply Chain Strategies
Read Text Preview

Extract of sample "Developing Market Specific Supply Chain Strategies"

? Evaluation and Application of Thesis Lecturer: Evaluation and Application of Thesis Introduction In the current dynamic global market, organizations have resorted to effective design of supply as one way of surviving in this competitive environment. The ability of a company to roll out its products depends on its ability to maintain design effective supply chains that will link them to their target customers. Advancement in technology has a great impact on the market environment and companies have been compelled to remain flexible to keep up with the ever growing competition. Apart from product differentiation and cost-reduction methods, organizations have to invest in product mobilization to ensure that their products are effectively distributed and are accessible in the market. The design of supply chains has become a complex issue due to the difficulty that many organizations are currently experiencing in attempting to predict the demand of their goods. Competition has further been fuelled by new market entrants and the existence of alternative products in the market that have greatly affected the customer preferences and tastes. Consequently, the ability of an organization to establish an effective product pipeline will have a direct impact on the viability of a business system in terms of revenue and profit generation. Managers have to choose from a number of various pipeline strategies to apply in their business environment, which is the main challenge they have to face today. While selecting a product supply mechanism, the main aim of managers is usually to expand their coverage in the market and to improve the accessibility of their goods. Hewlett-Packard (HP) is one of the organizations that have been faced with market forces that are threatening to push it out of computer sales business. With the proliferation of computer technology, many companies have flooded the market to capitalize on the high demand that over time has maintained an upward trend. One way that this company would maintain its over one billion customers that it currently controls over the globe, the company has to define a modest pipeline strategy. The most appropriate pipeline strategy for this company would be optimization of material and product flows in the market. This demands that the company determine a digital content management initiative to ensure that they keep it simple and efficient to provide information to their esteemed customers concerning their products. To satisfy the demands of their customers, this company requires adopting lean or green production strategy that has become a feature of successful manufacturing companies. Multinational Corporations have resorted to lean production as part of modeling their product flow paths within the diversified market environment. As Hsu, Tan Kaman and Koeng (2009) point out, the success of a firm passes through the control of its supply chain and that this strategy has become a core element in international markets. The supply chain management improves the flow of materials and information from the source to the delivery points; thereby satisfying the demanding needs of the customers. In essence, employing lean strategy will have a significant benefit on the manufacturer as well as the customers in the market. A unique benefit of the lean design is its ability to improve product flow through time and cost based strategies as part of improving the operational effectiveness. In lean strategy, the manufacturing company aims at reducing cost by reducing the amount by product associated with manufacturing of a particular good. In addition, the company optimizes its production cost by reducing any business operations that have no associated contribution to the business revenues. By minimizing the cost of production, a company that employs a lean strategy will be able to reduce its prices per unit products and hence attract more customers in their organization. The link between lean design and supply chain is that it is much easier to push low price products in a competitive environment rather more than marketing expensive products. In this view, as Simpson and Power (2005) state clearly, a lean supplier has the ability to maintain a stronger relationship with its active customers. Consequently, by adopting this strategy, HP will be guaranteed of loyalty from its customers and hence will have a high chance of survival in the competitive environment. Another reason why this model will fit in HP Company is because it will be an add-on on its endeavor to maintain high level social responsibility with its business environment. Employing a lean strategy is one way of revealing that the company is environmentally responsible for its practices and hence will have a positive impact on its public image. The research surrounding the issue of environmental management practices in the supply chain, which is often recognized as the green supply chain strategy has profoundly focused on environmental issue and it includes customers working with their suppliers to improve the environmental performance of the products (Simpson and Power, 2005). The impact that such a procedure would have is that it would establish a mutual relationship between the company and the customers, hence forming a smooth path for their goods. Lean strategy has garnered lots favoritism among many managers due to its integrative approach to supply chain modeling that enables managers to combine various supply chain design tactics. Christopher and Towill argue that supply chain management must shift from the idea of cost but the emphasis in supply chain management in the future must be on agility (Christopher and Towill, 2002). In this view HP will enjoy maximum flexibility in this strategy and integration of various supply techniques will allow them to conform to different environmental conditions offered on the diversified global market. Agility is a business-wide capability that embraces organizational structures, logistics process and information system; therefore employing agility for supply management can fit the strategy of HP Company. The market condition in the 21st century demand that product pipelining strategies conform to the requirements of customer demands (Christopher and Towill, 2002). HP Company is a technology driven company that has to face the pressure exerted by the business environment in the 21st century that has experienced a paradigm shift in technology. The adaptive supply chain must have the capacity of switching pipeline as demanded by the necessities of the market (Christopher and Towill, 2002). Although there are numerous challenges associated with adaptive pipeline strategy between the retailers and manufacturers, analyzing forecasts to decide on offshore production commitments is vital. The best way that HP Company can achieve differentiation is by providing engaging in innovative strategies of product modification. For instance, the company can differentiate by capitalizing in both computing and non-computing products that have a supplementary relationship. A good example would be sale of both computers and printers within their distribution outlets as the demand of the two products has a mutual relationship. HP Company identifies innovation of products, services and business models as significant strategies for achieving competitive advantage in the ever competitive business world. Effective product design plays significant roles in the supply chain but product design is often expensive; therefore, redesigning products in order to reduce logistic costs or supply chain lead times is effective (Picaud, Johnsen and Calvi, 2013). With lean perspective, HP will be able to redesign its product while maintaining loyalty of its esteemed customers, which is cheaper than establishment of new products In summary, the ability of organizational managers to design a smooth product distribution path will determine the success of their farm in the competitive global business market. The challenge that managers have to face is to make wise and prompt choices effective pipeline strategies among the various available options. For a company such as HP whose business goal is to maintain customer loyalty and edge out competition, it would be necessary to adopt a lean product design model. This model has its superiority in its flexibility and ability to conform to the demand of the market environment. In addition, a company such as HP that has a high regard for its social and environmental responsibility will find this model as a best fit. The expected outcome of effective application of this method in the business environment is that a company will be able to exercise flexibility, dynamism and efficiency as far as product redesigning is concerned. In this view, lean design would be a superior tool in the design product chain for Hewlett-Packard Company. References Christopher, M., & R. Towill, D. (January 01, 2002). Developing Market Specific Supply Chain Strategies. The International Journal of Logistics Management, 13, 1, 1-14. Hsu, C.-C., Tan, K. C., Kannan, V. R., & Keong, L. G. (January 01, 2009). Supply chain Management Practices As A Mediator Of The Relationship Between Operations Capability and Firm Performance. International Journal of Production Research, 47, 3, 835-855. Picaud, K, Johnsen T., & Calvi R. (2013). Discontinuous Innovation (DI): A review Definitions, Theoretical Perspectives and Measures – Towards an Empirical Study of the Role of the Purchasing Department in DI, 1-12. Simpson, D. F., & Power, D. J. (February 01, 2005). Use The Supply Relationship To Develop Lean And Green Suppliers. Supply Chain Management: an International Journal, 10, 1, 60-68. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Evaluation and Application of Thesis Case Study”, n.d.)
Retrieved from https://studentshare.org/business/1487696-evaluation-and-application-of-thesis
(Evaluation and Application of Thesis Case Study)
https://studentshare.org/business/1487696-evaluation-and-application-of-thesis.
“Evaluation and Application of Thesis Case Study”, n.d. https://studentshare.org/business/1487696-evaluation-and-application-of-thesis.
  • Cited: 0 times

CHECK THESE SAMPLES OF Developing Market Specific Supply Chain Strategies

EliteClean International Logistics Strategies

Elite Clean has employed a push-based supply chain strategy.... In the paper 'EliteClean International Logistics strategies' the author discusses four steps involved in value stream mapping.... They are: defining the product or product family; creating the 'current state' value stream mapping (CSVSM)....
11 Pages (2750 words) Essay

Learning and innovation in supply chains

Thus, learning and innovation is fundamental to company survival and supply chain viability.... The expectations of consumers from supply chains like timely-delivery should be studied in depth, so as to incorporate achieved memory in developing strategies of companies.... “Said differently, the more knowledge chain members possess, the greater their awareness that additional knowledge can ultimately enhance outcomes.... & Slater, 2004) All chain members should be involved in the learning process so as to make the entire process smooth and fast....
16 Pages (4000 words) Essay

Supply Chain Management of HP

In the essay 'supply chain Management of HP' the author provides the analysis of the collaborative relations between products, demand, and supply-lead times.... These are the major factors in the global supply chain management process.... The author explains that Hewlett-Packard (HP) has adopted the total cost notation in their initial stage of integrated process supply chain management.... Towill and Christopher (2002) had induced eight possibilities for the supply chain based on the product, lead times, and demand (p....
3 Pages (750 words) Assignment

Business Operations at Dell Corporation

In doing so, the study underlines some of the other facts such as the macro-processes involved in the supply chain of Dell Corporation.... Dell is known for applying innovative techniques for its sales process, manufacturing process as well as the entire supply chain process.... Currently, Dell operates in almost every part of the world and has allowed them to grab a significant market share (Dell, 2013).... In terms of market share, the company is ranked at the third position just after Lenovo and HP....
11 Pages (2750 words) Research Paper

Management of resources and operations

Tactically the major objective of operation management is to make use of the system of operation of the firm and offer the most appropriate solution that matches with the supply and demand condition (Dhillon, 2002; Kaynak, 2003).... In the last 37 years, the company has added several feathers to its cap and has been able to achieve a strong position in the market place.... For example, Sousa and Voss (2002) states that the management of operation and resources allows a company to satisfy the market requirements as well as make decisions pertaining to the deployment of resource (Prajogo and Sohal, 2006)....
9 Pages (2250 words) Assignment

Retail Marketing and Logistics Concept

It helps them to drive the attention of customers that is essential for developing brand promise.... The paper 'Retail Marketing and Logistics Concept' encompasses various aspects of retail marketing.... Retail marketing can be defined as a range of activities implemented by retailers so as to promote sales and awareness of products or services offered by a company....
7 Pages (1750 words) Essay

Operations and Supply Chain Strategies

This report describes operations and supply chain strategies of management.... It provides several reviews of some papers on operations and supply chain strategies where supply chain concepts are examined and analyzed.... Operation and supply chain strategies of a company is therefore important in ensuring its success thus there is a need for the company put priority in ensuring that there are well laid strategies that are able to deliver a successful and constant flow of information, funds and products in the different stages as the company strive to meet customer satisfaction and requirements....
8 Pages (2000 words) Report

Global Supply Chain Management

The paper "Global supply chain Management" is a great example of management coursework.... The paper "Global supply chain Management" is a great example of management coursework.... Market expansions could be the correct move in the pursuit of new business opportunities and even though the supply chain is historically considered as a cost centre instead of a value centre for numerous firms.... The paper "Global supply chain Management" is a great example of management coursework....
12 Pages (3000 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us