Lom5 Chapter 6

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LOM 5

A Question 2: What are Amazon.com’s competitive priorities and what should its operation strategy focus on?

Competitive priorities:

- Keep the position of market leader. - Maintain the fast delivery. - Low price focus - User friendly website.

Operational strategy:

Promote the website, especially in this time of the year, during the holidays. People will be reminded of the website, and maybe visit the website because of the promotion. When the visitors are on amazon.com, they must experience a nice shopping-environment. This can be done by constantly improving the website’s user friendliness, this can be done by improving the search engine for example. Or something as easy as changing some
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Extra questions

Question 1: Explain the competitive priorities for both product lines (customized furniture and standard furniture)
The priority of the company is the department of the customized furniture. But with both departments, there are different priorities. For customized furniture, the priority is to create a creative design, with the highest quality possible. For the standard furniture, the priority is deliver on time and a good price-quality ratio.

Question 2: Identify the OPP (Order Penetration Point) of each productlines
The OPP for the custom made pieces of furniture is the moment Chad’s staff start working on a project. The whole project is specifically made for one customer from the beginning.
The OPP for the Standard pieces is the moment that a customer buys the (already fully assembled) product. At that moment in time, the pieces are for that specific customer.

Question 3: Which flow strategy would be the most effective for each of the product lines?
For the custom made pieces flexible is the best strategy. This focuses on individual pieces. For the standard pieces, the line strategy is the best strategy. This strategy focuses on the whole line, not on individual pieces.

Question 4: What would you advice Chad 's to do to solve the current problems?
We would advise Chad to start a second factory. The current factory should be used for only the custom pieces. The new factory can be used for the

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