...Supply Chain and e-Supply Chain: Structures, Strategies and Drivers 1. SUPPLY CHAIN DESCRIPTION |Supply Chain: |Activities involved in fulfilling a customer request | |Actors: |Suppliers, Sub-Contractors, Manufacturers, Transporters, Warehouses, Retailers, Customers | |Functions: |Product, Development, Marketing, Procurement, Manufacturing, Operations, Distribution, | | |Finance, Customer Service | |Objective: |Maximize value generated through customer satisfaction | Decision Phases | |Strategy (Design) | | |Locations, Capacity channel design, Warehouses, Manufacturing, Outsourcing | | |Planning | | |Supply scheme, Inventory policy, Subcontracting | | |Operations | | |Allocation of individual orders to inventory or production, allocation...
Words: 1979 - Pages: 8
...Itu CHAPTER 6- ANALYZING MANAGERIAL DECISIONS iTUNES MUSIC PRICING MAUREN PIUCCO Songs have different values to consumers. The category may be the same, which is music, but the sub-categories has many variations. Consumers value each sub-category different, which some people may give more or less value based on what type of music they like or if it is a new release or not. I do not know which one of these characteristics they should prioritize setting up price discrimination but I assume it could be implemented (the price differentiation) in order to maximize revenue since people would be willing to pay more for something they value more. According to our textbook, there are several others pricing policies that can be implemented such as: * Block Pricing: A consumer might be motivated to buy more songs at once if more he buys cheaper it gets per song, for example. First song is 99 cents, second song is 98 cents and so on. People buy a lot from impulse and this strategy might explore this consumer behavior. * Two-part tariffs: consumers could pay a monthly fee to use iTunes, maybe a VIP membership for example, and then have advantages such as access to new releases first, special discounts and promotions, and then also pay per song. The company would have the upfront fee’s and also the per song fee’s. * Group pricing: the company could differentiate consumers providing different prices for different group of consumers for example. For example, like on...
Words: 682 - Pages: 3
...You need to say something rather than just launching into it. Option 1: Cost Leadership With a long term strategy based on the ability to be cost leaders in the online retail market, Amazon Inc. strives to ensure all corporate level decisions adhere to this goal. REFERENCE Prices on Amazon.com are around the lowest in terms of products sold and the background services that make it possible for third party traders to make use of the marketplace. This strategy employed has made it possible for Amazon to recognise significant increases in revenue; however they have recently begun to notice changes in their profit margin. A loss of $0.1 billion was recorded last year, REFERENCE which was attributed to modification made to their distribution centres and the underwriting of costs of production for the Kindle Fire. There is a need to for Amazon to increase their profit while striving to maintain the balance between low costs in order to not lose their customers. In order to achieve this they should look to increasing the costs associated with Third Party traders. REFERENCE These fees include: * Subscription Fees * Transaction Fees * Advertising Fees * Affiliate Fees There are risks attached to pursuing this proposed strategy as it involves increasing prices which always serves as a deterrent to customers. Some of which include government regulations, new entrants and pre-existing customers confidence. * Government Regulation: any unfair increases in subscription...
Words: 2912 - Pages: 12
...SWOT Analysis Amazon Strengths * Customer Relationship Management (CRM) and Information Technology (IT) support Amazon’s business strategy. The company carefully records data on customer buyer behavior. This enables them to offer to individual specific items, or bundles of items, based upon preferences demonstrated through purchases or items visited. * Amazon is a huge global brand. It is recognizable for two main reasons. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. It was an early exploiter of online technologies for e-commerce, which made it one of the first online retailers. It has built on nits early successes with books, and now has product categories that include electronics, toys and games, DIY and more. Weaknesses * As Amazon adds new categories to its business, it risks damaging its brand. Amazon is the number one retailer for books. Toy-R-Us is the number one retailers for toys and games. Imagine if Toys-R-Us began to sell books. This would confuse its consumers and endanger its brands. In the same way, many of the new categories, for example automotive, may prove to be too confusing for customers. * The company may at some point need to reconsider its strategy of offering free shipping to customers. It is a fair strategy since one could visit a more local retailer, and pay no costs. However, it is rumored that shipping costs could be up to $500m, and such a high figure would...
Words: 1456 - Pages: 6
...UKEssaysEssaysMarketingAmazon Com Case Study Analysis Marketing Essay submit to reddit Amazon Com Case Study Analysis Marketing Essay "We want to be the world's most customers Centric Company. . That we focus increasingly on trying to get the customer experience right. Within that we want to build a place where people can come and discover anything they might want to buy online." (Mellahi & Johnson, 2000). Executive Summary Amazon.com is an American electronic commerce company which has become as a symbol of internet business. It was first founded by Jeff Bezoz in 1995 when he began selling books online and to the date now, Amazon.com is the leading online market worldwide for its books and various other products. It was when the company aimed to be successfully the World's most customer oriented company. Customers can discover various products they wish to buy at reasonable and affordable prices. The strategy used by Jeff drove him to become the online leader of market. The main strategy used was to orient the business towards customers and to be innovative with continuous improvement in online shopping skills. Initially, it was used to be online sale of books and with the use of strategy and innovative approaches the business was expanded its boundary with introduction of various other products like toys, CDs, DVDs, computer software, apparel, furniture and goods etc. Amazon offers a large selection of books and wide range of products thereby making itself distinct...
Words: 5464 - Pages: 22
...Firms Strategies to Stay Competitive in the Market Table of Content ......................................... -2- Introduction ................................................ -3- Differentiation Strategy ................................ -4- Benefits & Challenges of Differentiation Strategy .................... -5- Apple ..................................................................................... -6- Low Cost Strategy ................................................................... -7- Benefits, Challenge &Mistakes of Low Cost Strategy ................ -8- Interview .............................................................................. -11- Conclusion............................................................................. -15- In the beginning, I would like to explain the major problem that is associated with economy in the whole world which is scarcity. We know that humans are greedy and they always want more of everything, so that is why we have the problem of not having enough resources to all people. Firms try to satisfy their customers by thinking of strategies that can make their customers satisfied and to stay competitive in the market. Looking from this perspective, I would like to introduce my topic about Firms Strategies to Stay Competitive in the marketplace. Firms can remain competitive through a lot of planned strategies. Being a competitor in the market requires constant monitoring of the...
Words: 3536 - Pages: 15
...Federation (NRF), Target falls in the top 10 companies out of the top 100 companies in America falling at number 6. Target offers everyday necessities, fashionable merchandise, home essentials and many more offering pricing at discounted levels. As one of the major retailers in America, target provides an opportunity for success by providing an exceptional guest experience, licensing departments and diversity in all parties involved. Targets purpose is to make everyday consumers make all target retail locations their number one preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences. In this analysis of Target Corporation we will discuss the areas of retailing activities. We will go in depth on how Target Corp. began into the one of the largest retailers in America by discussing a brief situational analysis providing information on Target’s sole mission to consumers, their distinctive retail strategy and to whom this successful strategy is targeting and as well their other monsoon competitors in the industry. We will provide information relating to terms and concepts learned throughout the semester. Once completing the situational analysis we will discuss Target’s tactics in customer service and pricing. We will then discuss multiple integrated marketing communications the company chooses to participate with and then going deep into an...
Words: 4465 - Pages: 18
...Marketing Plan Phase IV Executive Summary This report was put together by Marketing Team D to introduce a new marketing plan for a new product being introduced by Schwinn, the Tailwind electric bicycle. Schwinn has developed an electric bicycle that will be perfect for riders who want a comfortable and versatile bike for casual and fitness riding. This report will cover the SWOTT analysis of the Tailwind, the target market, what our research strategy was to develop this plan, segmentation, organizational buyers and consumers, the competitive landscape, features and benefits of the product, positioning and differentiation, and the pricing strategy for the Schwinn Tailwind. Marketing Team D has also included place and promotion elements, and the overall budget for the marketing plan. Overview of Schwinn Ignaz Schwinn began the Schwinn Bicycle Company in 1895. In 1998 Schwinn and GT bicycles merged to become Schwinn/GT. Forming this alliance has placed Schwinn as one of the top bicycle producers in the United States. “From your first ride without training wheels to a summer cruise at the beach with your friends, the thrill of riding a bike never gets old. Many of our fondest memories are tied to experiences we've had on bikes, rooted in unbridled joy and carefree fun. Even if you haven't hopped on a bike in a while, it won't take long for the smiles and laughs to come back ("Schwinn", 2014). Importance of Marketing The success of any product or business relies heavily...
Words: 5169 - Pages: 21
... Nature of Services and Classification Competitive Factors Tools and Service Strategies Service Operating Systems Service Quality and Benchmarking Facility Location and Site Selection Each section will be followed by a comparison and evaluation of the service operation systems within that section. The five service organizations that we will be examining in this report are: Best Buy, Wal-Mart, Sak’s Fifth Avenue, Amazon and the specialty kiosk I Play N Talk. Service Organizations Best-Buy Best Buy was founded by Richard M. Schulze in 1966 and has become a powerhouse in the consumer electronics industry. Their headquarters are in Richfield, Minnesota and they operate in the US, Mexico, and Canada. BestBuy has grown into a huge retail chain spanning over 1,400 stores. They started by the name “Sound of Music” in 1966 until 1983 where it was renamed to what we know it now as Best-Buy. Best-Buy employs around 125,000 people and they generate $40 billion annually. Amazon Amazon is not like most businesses. Although its headquarters are located in Seattle, Washington; it does not have a store location where customers can physically shop for productions. Their website, Amazon.com, serves as a market for buyers and sellers to do business with one another online. Amazon has many distribution systems throughout the United States that deliver productions to customers. To operate efficiently, Amazon must invest heavily in...
Words: 13435 - Pages: 54
...Decision: iTunes Music Pricing by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 10, 2013 Abstract Apples’s Itunes music store came upon the music industry in 2003. It quickly became supreme within the music industry. The iPod, Apple’s MP3 players, and iTunes software were all interfacing, making it one of the more popular technology favorites among consumers. At odds with iTunes were the music companies crying foul over infringement and pricing. Buying overpriced CDs were quickly becoming a thing of the past. Music had been illegally accessed through peer-to-peer file sharing networks. With the recognition that music was being stolen, other ways were being developed by those with a stake in earning a profit. The industry had to decide if it should allow piracy to continue of develop variable pricing alternatives. This paper takes a look at alternative pricing in the case study, iTunes Music Pricing. At the conclusion, readers will have a better understanding of variable pricing policies. Introduction Variable pricing represents a concept use, by Apple, to describe the structure of pricing to advertise downloadable data. Variable pricing involves the different cost of a product for based on the preferences of the producers. This varies from the model of flat pricing, where one fixed price is applied to those items that are the same. Content of purchased songs, all cost one price and all movies will...
Words: 1551 - Pages: 7
...product acquisition. This analysis provides an assessment of the case study, GAMESTOP, and offers answers to the pressing questions faced by GameStop’s leadership team. Our review and analysis supports that GameStop is well positioned to continue its aggressive growth and retail presence. We provide four primary recommendations listed below to facilitate the company meeting their growth goals and strengthen their ability to maintain their leadership position in the video game marketplace. GameStop should: * Focus efforts on building a larger presence in the European and emerging markets. * Consider varying its product mix, with a larger focus on used items, within its mall stores to drive higher profitability and enhance differentiation in those customers’ settings. * Align with a software developer to establish a presence in the online gaming and social gaming market. * Focus on gaining US market share by establishing more customer loyalty from new purchase to used trade-in or purchase. Implementation of these recommendations should provide sales growth, enhanced market diversification, and position them well to support the growing trends toward online gaming and video game downloading. Situation GameStop began as a small software...
Words: 3205 - Pages: 13
...Consultation Hours |DAY |TIME |ROOM |HOURS | |Sun & Tues |12:30-01:50 |UB 20605 |3 | |Sun & Tues |02:00-03:20 |UB 20605 |3 | |Mon & Wed |11:00-12:20 |UB 20605 |3 | |Mon &Wed |12:30-01:50 |UB 20503 |3 | I. RATIONAL: This course introduces the students to the world of marketing. Starting off with the key concepts of marketing, the course is also a survey of the marketing function of the organization, including the marketing environment and target markets, marketing strategy with emphasis on the marketing mix and social and ethical responsibilities of marketing. II. SPECIFIC LEARNING OUTCOMES: At the end of the semester, the students should be able to understand – • The basics of marketing as well as its Concepts, Processes and Environments. • The behaviors of different customers as well as their segmentation, targeting and product positioning process. •...
Words: 1707 - Pages: 7
...Deborah J Ross Auto Edge & Oligopoly Colorado Technical University Online Abstract: At noon, I share an elevator ride with Auto Edge’s Executive VP, George Wirtz. Ingrid stated that I gave her some good data about relocation. The President could use my help with a presentation that he is making to a crucial group of shareholders. I will discuss the 4 various kinds of market structures. I understand that each market structure is different as related to the number of firms that compete in each one, competition levels, coming into and exiting the economy, the price range of goods, and product variety. I will relate Auto Edge’s market structure to pricing concepts. The demand for goods is related to price sensitivity. This differs. I will align market structures with elasticity of demand structures. A monopoly involves no pressures as related to competition. This can well be related to government regulation. Consumers have no freedom as related to choices. Monopoly is an example of perfect inelasticity. Government regulations are hard to keep without legal restrictions. The post office is a great example of a monopoly. They only deliver envelopes (Hagen, 2014). De Beers is a great example of a monopoly. They offered diamonds very openly. They put a complete lockdown on the whole chain of supply. De Beers put quite a bit of pressure on retailers to just sell their diamonds. The company would buy up all diamonds; so that the diamond supply was limited...
Words: 2605 - Pages: 11
...BUSINESS-LEVEL STRATEGY By Alan S. Gutterman 1 Abstract Growth is a key goal and objective for emerging companies and management must carefully determine the best way to combine the core competencies within a firm’s functional departments to provide the firm with the best opportunity for achieving and sustaining a competitive advantage in its chosen environment. This report focuses on the process of setting business level-strategy, which includes (1) selecting the domain(s) in which the firm will be competing for scarce resources (e.g., capital, personnel, technology, inputs and customers) and (2) positioning the firm in each chosen domain so that its function-based core competencies are most effectively leveraged to establish a competitive advantage. The overall goal of business-level strategy is to protect the firm’s position in its current domain and, if possible, enlarge the domain in which the firm can operate with a competitive advantage. I. Overview Senior executives and managers involved in the development and implementation of business-level strategies are tasked with identifying the core competencies within the various functional departments of the company and combining them in a way that provides the company with the best opportunity for achieving and sustaining a competitive advantage in its chosen environment. The key choices that must be made when setting business-level strategy include: (1) selecting the domain(s) in which the company will...
Words: 5116 - Pages: 21
...Can It Recover from Its Strategy Missteps? Company Overview: Netflix Corporation was established in 1997 by the current CEO, Reed Hastings alongside software executive, Mark Randolph. They are the world’s leading internet television network with over 57 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any internet-connected screen. Additionally members can play, pause and resume watching, all without commercials or commitments. The company was originally only a DVD--by--mail service in which the customer paid for a certain level of membership that determined how many DVD’s could be rented at one time. DVD’s were mailed to the customer and then returned by the customer when they were done watching. After a couple years in business, the company began including streaming services along with this. The goal here was to reduce costs by trying to get the subscribers to switch to streaming, which would reduce the costs incurred for postage and shipping with the mailed DVDs. By 2009, Netflix was offering a collection of 100,000 titles on DVD and had surpassed 10 million subscribers. Strategic Challenges and Analysis: Hastings developed a strategy which made Netflix the largest online subscription service for streaming entertainment in the world. Netflix’s strategy includes the following: ...
Words: 3245 - Pages: 13
