obsolete. 2) Form a mix of online and offline operations and lay procedures to enable customization and ordering by customers over the internet but maintain physical dealerships as well. a) Advantages: Customization to clients, start of vertical integration, b) Disadvantages: Costly, time consuming, requires internal and external changes which are not easy to handle and integrate with other operations. Team 4 Critique 4 3) Create a virtually integrated supply chain based on Dell's model. Ford
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its portfolios in a related field, it will either embark on a vertical or horizontal integration. Quite often an organisation will decide to take over a stage within the value network that is adjacent to their own. They thereby take over the responsibilities that input into the business. This is called backward integration. Others decide to take control of the next stage of their supply chain; this is referred to as forward integration. Furthermore, other organisations may decide to either develop
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and motion detection. Under Tim Cook, Apple is moving in a more innovative direction, launching multiple new projects, enhancing the company’s platform to enable more people to build business. Apple’s horizontal integration strategy across devices and channels and vertical integration strategy from chip design to software and retail is creating a truly sustainable competitive advantage that is hard to replicate. For that reason alone, its valuation skyrocketed. This is a brilliant example of classic
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Zara is vertically integrated as a result of its focus on being the quickest and most agile fashion retailer in the market. Zara’s structure vertically integrates the design process, just-in-time production, sourcing, delivery and sales which provides a very close and informal information network and efficient coordination across all of the production and sales units. For example, store managers are able to share feedback on how new designs are being received by the market with the relevant design
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they supply. Their goal is to be the leader in beverage. You don’t have to focus on keeping up with other company’s just have really good products and come up with new products for your company. Coca cola beginning to offer other beverages is vertical integration, they produce their own products and are always build a better brand. By making other products like tea, juice and water help the company be diversified. Southwest airlines has found a way to pay less for fuel and that helps the bottom line
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#2 – Is Disney diversified along geographic and product lines? Disney is definitely diversified along both geographic and product lines. Disney has created value through various diversification strategies, primarily vertical integration and more specifically forward integration. They have diversified over geographic lines when they built hotels around the world, theme parks, not only in California and Florida, but also in Asia and Europe. Their cruise ships travel all around the world as well
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New Entry | Rivalry | Suppliers | Buyers | Substitutes | High/Mod/Low | High/Mod/Low | High/Mod/Low | High/Mod/Low | High/Mod/Low | Barriers to entry (reverse) - Are Economies of Scale an important part of this industry?(Y/N) - Do incumbent firms possess substantial brand identification and customer loyalty that potential entrants do not? (Y/N) - Are there significant cost advantages independent of scale in this industry (Table 2.2)? (Y/N) - Do governments regulate this industry? (Y/N)Yes answers
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Individual Assignment 1 Zara: Fast Fashion 1. + 2. Zara’s business and operating model is focused on speed and the need for fast fashion, I think a word that would classify it is mass customisation. It is targeted at young fashion and price conscious urban dwellers and is built on a vertically integrated system focussed on demand and supply. Zara is constantly updating its design and production base to deliver exactly what the client wants based on their buying habits and the latest trends
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ADVANTAGE TECHNOLOGY NETWORKS PRACTICE PROCESS BALANCE PERFORMANCE SUPPLY CHAIN SUPPLY CHAIN THE &THE VS. HYPE REALITY 46 SUPPLY CHAIN MANAGEMENT REVIEW · SEPTEMBER/OCTOBER 2001 www.scmr.com The conventional wisdom is that competition in the future will not be company vs. company but supply chain vs. supply chain. But the reality is that instances of head-to-head supply chain competition will be limited. The more likely scenario will find companies competing—
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with an average of 92,000 employees, 44,000 shell service stations around the world, over 30 refineries and chemical plants that produce 2% of the world’s oil and 3% of the world’s gas at 3.2 million barrels produced daily (About Shell). Vertical Integration According to their website Royal Dutch Shell’s main mission is to “engage efficiently, responsibly and profitably in oil, oil products, gas, chemicals and other selected businesses and to participate in the search for and development of other
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