Académique Documents
Professionnel Documents
Culture Documents
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Finance, Accounting, Information Technology, Human Resources New Product Development Marketing and Operations Sales
Distribution
Service
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A company may fail because of a lack of strategic fit or because its processes and resources do not provide the capabilities to execute the desired strategy Example of strategic fit -- Dell
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Variety of products required increases Demand per product becomes more disaggregated Number of channels increases Rate of innovation increases Required service level increases Total customer demand is now disaggregated over more channels New products tend to have more uncertain demand Firm now has to handle unusual surges in demand
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Salt at a supermarket
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1%-2%
10%-40%
10%-25%
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Low
Cost
High
2007 Pearson Education
Low
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Responsiveness Spectrum
Highly efficient
Somewhat efficient
Somewhat responsive
Highly responsive
Hanes apparel
Dell
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Responsiveness spectrum
Uncertain demand
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Responsive
Quick response Modularity to allow postponement Higher margins Capacity flexibility Buffer inventory Aggressively reduce even if costs are significant
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Five categories:
Intracompany intraoperation scope Intracompany intrafunctional scope Intracompany interfunctional scope Intercompany interfunctional scope Flexible interfunctional scope
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Retailer
Customer
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