Challenges
Despite Agora’s overall operational success, the stores face a number of challenges. Mr. Rahim and other senior executives have identified the following major challenges:
Supplier Management: Although initial efforts were geared toward an alignment of philosophies with suppliers, this has been difficult to achieve. Suppliers are known to be short-sighted and have been historically accustomed to a different manner of doing business, and it is taking time to adjust their objectives and operations to meet Agora’s vision. Specific challenges regarding suppliers include inconsistent supplies that result in frequent stock outs, ineffective quality control mechanisms that cause increased monitoring costs to ensure high quality
…show more content…
The attempts to differentiate Agora from its competitors seem to be causing some of the confusing results. Successful communication regarding Agora’s superior service seems to be reinforcing consumer associations about higher prices and limiting the number of new customers. Successfully delivering superior service, on the other hand, seems to be generating satisfaction among those customers who have chosen to shop at Agora. The challenge then is to develop strategies to attract large numbers of new customers who will continue to shop at the stores. Advertisements that feature prices for specific product seem to generate more traffic from new and occasional customers, but featuring product prices tends to undermine positioning the Agora brand along non-price dimensions. This positioning dilemma is creating uncertainty, particularly in the advertising decisions being taken to increase customer traffic volume. A related issue is the definition of competition. Agora’s strategic position is to differentiate itself from the local Kaccha bazaars on all dimensions except price. Since Agora built its first supermarket at Dhanmondi, the industry has seen several changes, including the appearance of other supermarkets offering products in environments similar to Agora’s. It is not clear whether the target market’s definition of “competition” is the same as Agora’s strategic definition of competition. There
Rana Chowdury is the current the manager of I.T store systems and store support for a company that has 4 different brands. The 4 brands are Hot Topic, which specializes in music and pop culture inspired fashion including body jewelry, accessories, and music T-shirts. Torrid is all about the fashion for Plus-Size style and trendy clothes for women. Box Lunch has apparel, gifts, gadgets, & more that also helps provide a meal to a person in need with every purchase and finally Lovesick is young, trendy, affordable fashion & accessories for curvy girl’s sizes 10-26.
Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.
This monopolistic competition market structure has a positive effect on Kudler because it allows Kudler and their speciality foods to carve out a niche that the competition will find it hard to enter. Kudler’s market strategy (locations and unique products) should be very effective in keeping out potential competitors and establish a large barrier to competitor entry. Since Kudler’s stores are located in areas with limited populations the ability of competitors to gain entry into their market is limited. Since competitors cannot enter their markets, Kudler should experience long-term profitability providing they keep their customers happy.
Aromaki, J. (2011, April 6). Tips for successful communication with suppliers. Retrieved September 1, 2014, from https://www.ictstandard.org/article/2011-04-06/Tips-for-successful-communi
Kudler Fine Foods is an epicurean grocery store for the connoisseur in which noteworthy growth with a focal point on increasing revenue, advancement concerning the effectiveness of operations, and shortening the consumer acquisition cycle is Kudler’s main objectives. Enclosed in this term paper is the significance of marketing research pertaining to the expansion of Kudler Fine Food's marketing line of attack and identification of the regions in which Kudler calls for additional market research is necessary. In addition, a comprehensive analysis concerning the value of competitive intelligence and breakdown with relation to the improvement of Kudler Fine Foods marketing strategy and tactics is scrutinized.
Businesses benefit from having a good relationship with their suppliers of raw materials and components. In manufacturing, companies are adopting “Just-in-time” manufacturing. This means that businesses only produce when they have an order, and they only get materials delivered when they are needed. Businesses require reliable and efficient suppliers to be able to order their stock last-minute.
When you’re choosing a supplier, you’re not just choosing a particular product, but the people who push that product as well. Issues or late shipments are inevitable, but when those things happen, you want to feel confident that you’re working with professionals that will solve things quickly.
Blanchard (2009), “successful supplier relationships require two-way information, recommendations, metrics and incentives. Riordan Manufacturing must understand the cost and value of their entire supply chain. Without a detailed understanding of all costs, from raw materials through the end product or service, and the value provided by its supplier in the process, a supplier cannot be evaluated. Therefore, there are several things Riordan Manufacturing can do to improve their relationship with it suppliers. They can incorporate appropriate service levels and metrics into agreement, share critical information as early as possible, plan for major contingencies, expect and reward honesty and finally, make relationship meetings meaningful” (10 Strategies for Managing Suppliers).
My objective was to recommend solutions to the supply of inferior quality sheet metal. I have to decide to retain the errant supplier and have recommended a roll out of supplier development strategies. I have recommended the optimal sequence of rollout of strategies for supplier development and did well!
Effective supply chain management can provide an important competitive advantage for a business marketer, resulting in improved communication and involvement among members of the chain, increased motivation, and decreased costs. Tracking the movement of and demand for components used to manufacture a product across a variety of potential and actual suppliers, provides insight and the ability to respond instantly to shortages, surpluses, and changes in market conditions. It seeks to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce cost.
Being one of the biggest technological companies in the world, HP 's products are by nature innovative products, which usually have short life cycles and require the introduction of a steady stream of newer innovations to keep imitators at bay. Their market is uncertain and suppliers in this context must be chosen for their speed and flexibility, not for
Some of these problems in the supply chain often go unnoticed as the number of links between supply network members. Supplier Ethics Management is the “management of suppliers and supply relationships with strategies, programs, and metrics that better align supplier business conduct with purchaser standards, with the goal of reducing the purchaser’s overall risk of corporate integrity failure in the supply chain.“ (www.s-ox.com)
Competition has became evident and essential in the market of the world’s most important companies. It has allowed consumers to receive ultimate value from the goods and services that they are seeking. In my case study this competition is between two companies that produce ponchos for the fashion industry. The company that we are introduced with is named Tela and their running mate, Saira, is the Goliath of this market. Tela is trying to stay afloat and gain more customers as the underdog. Their plan to reach out to prospective customers is to introduce their new marketing strategy. This strategy includes Tela’s new mission statement which would make consumers aware of their core values and advantages over the Saira. Tela is owned by
Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.