Posted at 10.16.2018
Due to market research and marketing evaluation in what consumer needs or would like, company must develop new product and services or improve them with the creation of new idea, design or technology to fulfill consumer. Also to contend with other rivals to be first to bring in one new product, industry needs to constant innovation. For example in 2010 2010, because of low barriers to entry to New Zealand banking market, the banking industry's effort to innovate their products and services such as make easier for customers to change bankers and competitive interest rates and it brings about high customer satisfaction ratings and increase in profits.
http://www. nzherald. co. nz/business/news/article. cfm?c_id=3&objectid=10845099
------ Competition within an industry is actually affected by rivals racing to be first to create one new product or product advancement after another
Product creativity is the introduction of new products, changes in design of proven products, or use of new materials or components in the produce of established products.
Thus product invention can be divided into two categories of technology: development of new products, and improvement of existing products.
New product development explains the complete process of bringing a new product or service to market. You will discover two parallel paths mixed up in process: one consists of the idea era, product design and information engineering the other involves market research and marketing evaluation.
Improvement of existing products includes, but is not limited by, improvements in practical characteristics, technical capabilities, or simplicity.
2. Marketing innovation
Introduce of new ways to marketing products like costing, packaging and promotion, can appeal to buyer's interest, and increase industry demand and product differentiation which may lead company to change the competitive positions of rival firms. For instance, companies like Dell; they use one-to-one marketing strategy for customers to modify their products predicated on what they need to gratify them more. It implies that marketing innovation can support business expansion without introducing new products.
the advantages and execution of new marketing techniques, like costing, product packaging and campaign etc. ///////Introduce of new ways to advertise products, can spark a burst of buyer interest, widen industry demand, increase product differentiation, and lower unit costs-any or all of which can transform the competitive positions of rival organizations and power strategy revisions.
Innovation is very important to maintain business development and innovation new products should be strong enough to enter market place
3. Technological change and creation process innovation
Development in technology processing process can make industry to create high quality product at less expensive which can result in higher industry profitability. As the upsurge in technological changes, plenty of companies automate their developing processes which can contributes to increase development and reduce expenses. However, it also has disadvantage such as lack of many manufacturer job so CEO has to consider carefully about applying this strategy to not to have issues between labor makes.
Advances in technology can dramatically adjust an industry's landscaping, making it possible to produce new and better products at less expensive and opening up totally new industry frontiers.
4. Changes in who purchases the product and how they use it
change in buyer demographics and how consumer use the products can transform how customers make purchasing decisions, where customers choose the product and exactly how customer consider value. And it can cause more competition between other rivals.
Shifts in buyer demographics and the ways products are used can alter how customers understand value, how customers make purchasing decisions, and where customers purchase the product.
4. Increasing globalization
Even though globalization has benefits to expanding country, it also brings negative result such as eliminates careers, lower pay, and exploits staff on benchmarks of residing in some country. Therefore some countries are actually trying to restrict globalization. Due to globalization, lots of global company like Apple or Samsung will try to manufacture their product in low-wage country to export and transfer at an extremely low cost. It could be benefit to growing country. However, it'll decrease manufacturing careers in developed countries. Moreover, because of low-wage in growing country, wages for worker in developed country is underestimated. Even though, the typical cost of living is greater than what they earn. Finally, there have been some serious interpersonal issue about Nike that they cared for employees in low-wage country very terribly, people were working in awful environment with very low-wage. Regarding to the, global company only considering utilize work force because of low wage without contribute toward efficiency in producing country.
Question 3 b)
Some people view the increasing globalization as a menace to many local market segments and view it as it creates poor people become poorer and wealthy people become wealthier because revenue is unevenly distributed.
But Increasing globalization can be beneficial and may develop many country's current economic climate, politics, culture and environment. In addition, it made the entire world easy to exchange information worldwide making global company to switch faster or use knowledge effectively to handle quick changes in global market.
Because of globalization, global companies like Apple, Samsung or Nike are trying to make their product in low-wage country to export and transfer at an extremely low cost. Also to do that, they need to build their facilities, training personnel and develop good romance in country which will offer alternatives for unemployment and trade problems. It also brings new production methods and management techniques. In addition it also spreads out new types of technology faster. The business has to take up new technology to increase their quality of products and sales. Due to globalization, new technology spreads out the world faster making company to fulfill their customer expectations efficiently.
It is beneficial and may develop many countries overall economy, politics, culture and environment. And it could also bring happiness to customer by gratifying their needs.
But many people view the increasing globalization as a menace to many local markets
They view it as it creates the indegent become poorer and rich people become wealthier.
But if people understand globalization in different ways, it could help and develop the economy of several countries.
Growth of modern electronic digital communication, made the planet easy to transfer information all over the world
Globalization offers solutions for trade problems and unemployment in many countries
It also spreads out knowledge, new types of technology and cheaper economic polices
It also brings new production methods and management techniques.
Products can be exported and brought in at a very low priced.
It can be identified either as a difficulty or an opportunity.
Nike has spent the previous four years building facilities, training staff, and developing connections in China
Question 4 1) Value Chain Analysis
Value Chain Examination is tools for managers to check that company is utilizing their resources effectively and effectively to produce benefits for the business or losing their resources unnecessarily during operations. By analyzing key activities and support activities of company's businesses can figure out their competitive advantages. Moreover, it helps to find ways to provide satisfaction to customers.
Primary activities for Dell
Dell stores the part for personal computers until they want for the coffee lover on creation and assembly series. So suppliers can be found close to the factory plants to lessen costs. Dell depends mostly on the suppliers and they are using just in time deliveries using their suppliers with good marriage. Also they let suppliers to provide items like displays and speakers directly to the customers to reduce inventory costs.
Here goods are received from a company's suppliers. They are really stored until they can be needed on the production/assembly range. Goods are shifted around the organization. Dell relies usually on its highly reliable company, where Dell streamlines its operation and depends on its computer monitor supplier to deliver directly to the client. So long as its supplier keeps its authority position, Dell would collaborate with it to achieve common success.
1. Those activities concerned with receiving and strong externally sourced materials
2. Just with time ordering
3. Close to suppliers
The offer customization option for customers to fulfill exactly what they need and all the goods are produced with (build-to-order) system to lessen expenses on stock and cost. This manufacturing process is their main competitive advantages to grow business.
This is where goods are made or put together. Every Dell system was created to order. Customers get exactly what they want. Dell uses knowledge gained from immediate customer contact before and following the deal to provide award-winning trustworthiness and tailored customer support.
1. The make of products and services- the way in which resources inputs are changed into outputs
3. Customizations options
Dell offers the completed good to their customers immediately which can makes them to talk easily with customers and build good marriage. This direct model offers them benefits such as learning sales movements and recognizes what customer need or what customer don't want.
When Dell introduced the direct model, its competitors were selling computer systems to end consumers via marketers. Dell, on the other hand, sells right to consumers and is continuously interacting with them and benefiting, especially in two areas, finding sales styles and learning about unmet customer needs. The company also relies on customers' understanding of what they want to purchase so when they want to complete the transfer to drive the direct business model. Dell leverages this source of customer knowledge by so that it is as easy as possible for a customer to put a customized order electronically.
1. Those activities associated with getting done goods and services buyers
2. Near customers
3. The monitor example
4. Room for improvement
5. Night time delivery
Marketing and sales
Dell offers online-sales or telesales directly with customer and without any retailers. Advantage of direct model is that the business can continuously in touch with its customers which helps these to get a concept of how to innovate their sales and marketing strategy and they also can reduce cost on exploring market trends.
Dells direct to customer model solve the challenge for extra capital for marketing and sales. By reselling right to consumer it taken away retailers on the way. One advantage of this type of system is that the organization is continuously in contact with its customers and they're benefiting in two areas regarding sales and marketing, seeing sales developments and learning about unmet costumer requirements.
1. Essentially an information activity- informing customers and customers about products and services
2. China/ credit credit card/ shop essential
3. What about people who don't computers
4. Improve a lifestyle brand
Dell provides assembly services by Dell experts as well as 24/7 online support for large businesses and establishments as well for small businesses and home Personal computer users. Asset restoration and recycling services within an green manner are offered. PC support services in case there is malfunctions and safeguard services against accidental damage are given.
Dell spent dollars training well-educated business segment professionals provide state-of-the skill advice to customers. The company also initiated a collaborative customer-solution teams that collaborate with customers to fulfill any unmet customer needs. Because of the type of work of Dell's employees they can be continually being encouraged to stay abreast of technology dangers and opportunities that could adjust the competitive panorama in the future.
1. All those activities associated with maintain product performance after the product has been sold
2. Service a poor
3. People don't lick just offshore support, usually pressured when they call and this adds to their stress
4. If something will go wrong the computer has to go back in the past
Supporting activities for Dell
It is upon this activity that Dell is vulnerable because Dell do not enjoy covered by hallmark or patent or copyright technology. The technology being found in the industry is shared by all industry players.
1. Sourcing and negotiating with materials suppliers
2. Cutting down the bargaining ability of Intel and Microsoft
Human source of information management
Dell's mission affirmation is "to be the most successful computer company on the globe at providing the best customer experience in marketplaces we serve". Dell employees, immediate salespeople, help-desk providers, engineers, and the like all have to be knowledgeable and customer concentrated to ensure Dell's extended competitiveness.
1. Those activities worried about recruiting, developing, motivating and rewarding the work push of an business
2. Potential for spinning it off as a separate business unit
3. Hosted payroll
Technology is an important source of competitive advantages. And here's one durability of Dell for the company enjoys better usage of technology. Dell presents the latest relevant technology a lot more quickly than companies with slow-moving indirect distribution channels.
1. Activities concerned with managing information control and the development and safeguard of knowledge in a business
2. Lagging behind in technology research and development
Dell revolutionized the original value chain of computer creation industry by launching the direct to customer model. Dell also employed a global business consultancy, to make it develop a group of metrics to guage business-unit performance. By doing so, daily decision making were better. The chief financial purpose that steered managerial evaluation at Dell was return on invested capital (ROIC). Which contributes to no inventory build-up, Dell becomes over inventory every six days and nights normally, keeping related costs low.
1. Concerned with an array of support systems and functions such as finance, planning, quality control and general senior management
2. Reacting to problems by change in older management
Operation to meet adding value, improve quality, add efficiency and increase profit
Receiving and distributing natural material
Converting raw material into a completed product
Identifying customers and distributing the product
Supplier romantic relationship process
Sharing data with suppliers
Long time romance with suppliers
Sending latest information about services or services by email to construct good marriage with customers.
Question 4 2)
- In today's competitive software industry, all firms would like ways to improve their efficiency. One such method of improvement, recently implemented by many companies, is benchmarking. Benchmarking is a method used to judge internal business operations. In this analysis, managers determine the firm's critical procedures and outputs, baseline those techniques, then compare the performance of each process against a typical within the industry. Dell offers similar products, acts different customers, and use different ways of achieve their goals. Dell can study from the competition. The most effective way to learn about the industry is by benchmarking world-best techniques. This practice has been successful for Dell before and should be a continuing progression of benchmarking each year.