Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
3. How do you anticipate Altera’s customers will react to this new strategy? What are advantages and disadvantages for Altera’s customers? I would think that Altera’s customers would embrace Altera’s new management strategy. This is because their new strategy will likely reduce lead time for most products and service levels will increase.
In 2009, Temsa Global executed a low-cost, customer-driven product strategy. Through product design, the company was able to bring down production costs of the Avenue city bus, which they were able to price competitively. Temsa Global also responded rapidly to the market needs ahead of its competition. It invested in hybrid power technologies and green design to produce lighter buses that consumed less fuel. This is vastly different from their business model in 1984, which was simply to manufacture the license products of Mitsubishi.
b) Explain why you should respond positively to changes in products or services. It is important to respond positively to changes in products or services because it is likely it will increase your business turnover. A company will want to review its services and products so that it keeps up to date with the expectations of its customers. This will ensure the company can stay competitive and meet its targets and objectives. c) Identify ways of responding positively to
With the value of the dollar raising it will increase real Gross Domestic Product. When the country as a whole is better it will make people feel good about spending money. Once people start spending money, the country will start to resemble what it used to be. In addition exchange rate could be a big factor on the amount of product that you export. This could have a bearing on what the company’s bottom line
Creating more profit opportunities by increasing marketing and promotion will encourage the dealerships to bring in and stock more of Company S’s product. This strategy is advantageous because it increases the opportunities for profit for not only the dealerships, but for Company S as well. If the dealerships sell more units, then Company S will make more money as well. This will create trust between Company S and it’s dealerships. A disadvantage of this strategy would be costly.
In addition, by forming partnerships and joint ventures with other industry giants, Toshiba shared the risk of developing expensive on new technologies. This strategy enabled Toshiba to produce higher quality products at lower prices. Insistent improvement to the manufacturing process resulted in higher quality products, making the products more attractive, and the increase in efficiency generated lower unit costs. These make Toshiba’s product more attractive and competitive which allowed the company to make further investments in quality and exploit advantage on its competitors. Using efficiently of balancing the lines in assembling process also helped Toshiba ends up increasing productivity and lower costs, at the meantime caused introduction of new models.
The sooner that company Q can anticipate and foresee what products are more in demand the sooner the company will be able to create a better profit margin, establish a good working relationship with the customer, and achieve a favorable public and consumer perception. The problems that face Company Q today are not unlike those that face many companies throughout the country. The difference is that company Q has the opportunity to repair the public perception, learn from the error of their ways, and develop new strategies to increase their profit margin, establish community relations, and achieve a good public
Lean’s solution provides benefits to outsourcing buyers. They include:  Providing great value because the outsourced supplier can complete the work more efficiently and with higher quality Giving the supplier more flexibility to craft a better solution. Some suppliers use formal outsourcing models, which limits their flexibility. Focusing the supplier’s attention on the value the customer is looking for. By working backwards from the end state of the customer’s value, the supplier is able to design the process and then drive to that value.
In 2007 Aldi was implanted in Europe, USA and Australia, and Lidl only in Europe. The main strategy chosen by these two retailers to enter foreign markets is greenfield investment. Greenfield investment is a form of foreign direct investment (FDI). It means that a parent company starts a new business by constructing new operational facilities and hire new employees from the local country. There are mainly three kinds of FDI: Greenfield investment (The main internationalisation strategy of Aldi and Lidl) Acquisition (Sometimes used by Aldi or Lidl, for instance the acquisition of Hofer) Joint-venture (not discussed in this case) The main advantage of greenfield investment against acquisition are: The flexibility: It gives them the maximum design flexibility of their stores and their warehouse; moreover, they can choose precisely the location of their business in order to optimize the rental cost and the catchment area of their stores.