MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
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Chapter 14, Problem 6MA
Summary Introduction
To calculate: The break-even volume at each case.
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As a purchasing manager for a manufacturer of domestic appliances, you are to source the door seal for a new model of a microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Limited has a substantially lower price than the other suppliers, including your current supplier Thermalbond Limited. However, the last time you did business with Permaseal Limited was six years ago and at the time you experienced some quality and delivery problems.
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Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
As a purchasing manager for a manufacturer of domestic appliances you are to source the door seal for a new model of microwave oven. the component has caused problems in the past but design problems have now been overcome. the market has been increasingly competitive and any problems with the new model could be disastrous. preliminary sourcing indicates that permaseal Limited has a substantially lower price than the other potential suppliers, including your current supplier Thermal Bond limited. however, the last time you did business with permaseal was six years and at the time you experience some quality and delivery problems.
Explain in details how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
4. Who are 401 Games' direct and indirect competitors? How competitive is this industry? Are there any general trends or changes you anticipate for this industry?
5. What is John’s current product mix? What are the options to change that in the future?
6. What is John’s current pricing strategy? Should he change it? Why? What about his place/distribution strategy? What options does he have?
7. What are John’s promotion activities? What else could he do? How effective would that be?
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