Ch5_supply_chain_S2011

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Unformatted text preview: Chap
5
–
Managing
the
Supply
Chain
 8
Supply
Chain
Func5ons
 Buying
 Financing
 Info
 Gathering
 Selling
 Sor5ng
 Risk
Taking
 Storing
 Transpor5ng
 Marke5ng
Ins5tu5ons
 Primary
 (take
5tle)
 Facilita5ng
 (don’t
take
 5tle)
 Facilita5ng
Ins5tu5ons
 Agents
&
 Brokers
 Financial
 Market
 Researchers
 Length
&
Width
of
 the
Supply
Chain
 “Best
Buy
Expands
iPad
Sales”
 Source:

Wireless
Week
9/15/10
 Length
of
Chain
–
“Time
to
Market”
 “Quick
to
Market”
or
“Fast
Fashion”
 Control
of
the
Supply
Chain
 Which
intermediary
exert
 influence
in
the
channel?
 How
do
they
influence
the
 channel?

 How
do
those
who
do
not
 dominate
the
channel
behave
 to
most
effec5vely
preserve
 their
posi5on
in
the
channel?
 Ver5cal
Marke5ng
Systems
 Manufacturer
 Wholesaler
 Retailer
 Consumer
 More
Consumer
Manufacturers
Selling
 Online,
Compe5ng
with
Retailers
 Source:
Star‐Telegram,
12/28/10
 Different
Ver5cal
Marke5ng
System
 Structures
 •  •  •  •  Corporate
 Contractual
 Coopera5ves
 Franchises
 Retailer
–
Owned
Coopera:ves
 Franchising
 Franchises
and
Business
Opportuni2es 
 Advantages
to
the
Franchisee
   Low
Capital
Requirements
   Proven
Brands
   Loca:on
Pre‐Screened
   Management
&
Opera:ons
 Support
Provided
   Coopera:ve
Marke:ng
 Possible
   Lower
Risk
of
Failure
   Economies
of
Scale
 Disadvantages
to
the
Franchisee
   Oversatura:on
Possible
   Franchisors
May
Overstate
 Poten:al
   Locked
Into
Contracts
   Loss
of
Freedom
   Opera:ng
Restric:ons
   Fees
May
be
High
   Fees
Usually
Based
On
 Sales,
Not
Profits
 Balance
of
Channel
Power
 Types
of
Power
in
the
Chain
 Manufacturer
 Wholesaler
 Retailer
 Reward
 Power
 Exper:se
Power
 Referent
Power
 Referent
Power
 Coercive
Power
 Legi5mate
Power
 Informa5onal
Power
 Conflict
in
the
Channel
 Percep5on
 Conflict
 Goals
 Domain
 Dual
Distribu5on
–
Levi
Strauss
 Channel
Collabora:on
 Mutual
Trust
&
Solidarity
 Category
Management
 ...
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This document was uploaded on 11/04/2011 for the course MKTG 436 at S.F. State.

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