It is actually quite the opposite, Wal-Mart’s supply chain is very customer focused, which is what gives them an advantage over their competitors. Wal-Mart focus’s on the customer and employs a pull strategy, where the demand from customers is the basis for production for Wal-Mart suppliers. This gives them a unique production method, in that they do not produce based on traditional methods rather it is based on short-term forecasts of demand generated by their customers. This allows them to not only keep stock costs low, it also allows them to track demand of individual products. This results in lowered costs of advertising and promoting products because they are able to accurately track demand and can adjust their advertising based on what is selling and what is not resulting in more accurate marketing efforts.
With limited means companies, can exploit promotion mix marketing strategy. According to Tanner and Raymond (2010), promotion mix is the harmonization of marketing elements like advertising, personal selling, sales promotion, direct marketing, telemarketing, public relations, and direct response advertising so that together they can work efficiently. Take advantage of any event and carry out a sales promotion. From my personal observation stands at trade fairs are always affordable and as such are opportunities firms with a limited budget should make use of. Secondly, sales promotion is also good for new businesses because an awareness campaign for products is just as important as sale promotion and advertising but cheaper.
The advantage of these kinds of partnerships is that you can use your partner’s established platform to promote your products. The biggest disadvantage of indirect distribution is that the quality of the item no longer remains in the principal’s control. The pricing also would vary from store to store and this may not be preferred by global customers. An advantage identified in indirect distribution is faster time to market. Hence the customers can buy the items more rapidly and this saves time and money of the principal company.
They would do well investing inwardly, yet there is more room for growth in other markets and into other nations and businesses. c. Acquisitions make sense because there is a track record behind the business. They would not have to necessarily have to start form scratch in a foreign nation. Cemex can make this business prosper into something new. They have the experience and the knowledge in the industry to apply.
A company or business organization can also save costs and provide a cushion capital fund to business organization that could be leveraged in a manner that best profits the organization. Outsourcing and especially offshoring aids business organization to lessen risk and is also among the primary reasons embarked upon. Outsourcing is a better solution to business organizations since it enables business organization to realize the benefits of re-engineering. Business organization can also outsource in order to help them expand and gain access to new market areas worldwide, by taking the point of production or service delivery closer to their specific end users (Carroll, et al
The Practical Elements Compared to starting your own business from scratch franchising can provide a relatively safer route into self employment. The franchisor has established a tried and tested path through the maze, and will have eliminated many of the mistakes that are often made when starting a business. It is this experience and system that you are paying for when you buy a franchise. One element with franchising to be wary of is also part of franchising's strength. As a franchisee you will be expected to follow the system that you have purchased.
As I states above Indigo’s core competency is how easy and fast it is to implement it. Although Adeptia believed that they would differentiate themselves through pricing, companies have expressed that what they actually appreciate is the system in and of itself. While lower prices can be a good way to get doors opened I believe they can still increase their prices and therefore their profits.
Brand loyalty is also very attractive to the companies since they enjoy their work being easier, and less costly. It is less expensive and less time consuming to keep old customers, rather than spend money and time advertising towards new ones. "Furthermore, companies with faithful customers tend to be less susceptible to economic down turns or new competitors"(Harrell). There are numerous ways that a company can create Brand loyalty. When the consumers can name the brand for themselves, they are more likely to care about it.
‘The franchisor also benefits from the fact that the franchisee, being a sole proprietor in most cases, is likely to be very highly motivated to succeed. The success of the franchisee means more sales, which translate into higher royalties for the franchisor.’ (S. Dibb et al, p335) Franchisors will also gain additional outlets for the distribution of products and services without having too many costs, such as hiring employees and acquiring facilities and equipment. A franchisor may also require the payment of an up front franchise fee, providing immediate revenue. The franchisees, having made a substantial investment in their own businesses, can be relied upon to maximize market penetration of the franchisor brand name on an ongoing basis and to deal with emergencies as they arise. But while franchisees can ... ... middle of paper ... ...for someone who does not like to be told what to do and likes to do things their own way.
Business Goals Often Can Be Met. It is often possible to draft a license agreement that achieves the goals of the licensor and does not violate the various franchising laws. Existing Businesses as Potential Licensees. Existing businesses often buy a license and add the product or service to that existing business; this allows the licensee to keep his “bread winner” business going while he tests the licensing operations and thus reduces the risk on the acquiring the license. Much Less Work on Daily Basis.