Alex, the senior electronics buyer for MegaShop, saw a great potential in acquiring digital cameras model JX-25 after he found the demand forecast for that specific product to be high (Coyle, J., & Novack, R., 2011). He saw a great opportunity to profit from the demand for these digital cameras but he needed a supplier that would provide him with the quantity that he needed at a low price (Coyle, J., & Novack, R., 2011). He had three offers, one from a supplier based in Japan, a second offer from a supplier based in India, and a third offer from a supplier based in Ukraine(Coyle, J., & Novack, R., 2011). Each of these suppliers had different prices and different ways to deliver the merchandise that would result in different total costs (Coyle, …show more content…
What is the current price per camera in USD for the Foto Technika offer? What costs, responsibilities, and risks does MegaShop (the buyer) assume under EXW, Odessa Distribution Center? (Coyle, J., & Novack, R., 2011) The price per camera included in this offer is $200.Under the terms of Ex Works (EXW) MegaShop has all the responsibility and risks associated with the shipment. Foto Technika is only responsible for making the cargo available at its facility. This means that MegaShop will not only have to pay for the carriage and insurance but also pay for everything else needed for the merchandise to arrive at its destination. This offer if chosen will create great transportation costs and risks for MegaShop. 4. What other transportation costs and issues must Alex consider to make an effective supplier selection? (Coyle, J., & Novack, R., 2011) When selecting one of these offers Alex has to take into consideration transportation costs as well as product costs. He must also make sure that the company he plans to do business with is financially stable, and has good reputation and experience in the market. He needs to be aware of how much inventory carrying costs each offer would create. A good demand forecast and analyzing expected transit times are also essential in order to determine approximately how much inventory is
A couple of Squares has a limited capacity for which to produce their products and smaller companies tend to have larger fixed costs than bigger companies. Therefore, A Couple of Squares must maximize profits in order to ensure that they will stay in business. A profit-oriented pricing objective is also useful because of A Couple of Squares’ increased sales goals. A Couple of Squares increased their sales goals due to recent financial troubles. Maximizing profits is the easiest way to meet these sales goals due to the fact that A Couple of Squares has limited production capacity. The last key consideration favors a profit-oriented pricing objective because A Couple of Squares offers a specialty product. A specialty product often has limited competition, therefore can be priced on customer value. Pricing at customer value will maximize profits as well as customer satisfaction. A Couple of Squares’ lack of production capacity, increased sales goals, and specialty product favor a profit-oriented pricing
The major categories or modes of shipment for Amazon.com in the U.S. are drop-ship, split, partnered, and postal-injection.
Leica introduced a small format 35mm camera in 1925. This smaller machine revolutionized the way photographers could transport the camera, as they could photograph discretely in all situations. (Uk.leica-camera.com, n.p.) Leica are considered a premium brand camera, well built and precise ensuring the images they create are quality. Leica, who are still a camera maker, have photographic galleries in Frankfurt, Los Angles, New York, Salzburg and Tokyo, alternating exhibitions of work that the Magnum Photographers captured. But from here, the 3...
Primark is a subsidiary company of the Associated British Foods (ABF). It was first opened in Dublin in June 1969, which under the name Penneys. Four more stores were launched within a year in Ireland afterward. Currently, Primark operates in over 270 stores in 9 different countries in Europe such as United Kingdom, Germany, Spain, etc. Primark capitalised on the fast-fashion tendency that began in the 1990s as well as the capability to produce garments cheaply in Asia where clothing values fell dramatically (Shawcross, 2014). It offers a diverse range of products which includes kids clothing, menswear, womenswear, accessories, home ware, beauty products and confectionary. According to TNS market research ranking, Primark ranks the second
Rohm and Haas plans to enhance its allocation for distribution and marketing spend of the Kathon MWX. This would result in additional revenue of 0.1 million.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
Atlantic Computer is a large manufacturer of servers and other high-tech products. They are known for providing premium high end servers. Atlantic Computer’s is in the process of introducing Tronn, a new basic server, which includes Performance Enhancing Server Accelerator (PESA) software. This software will allow Tronn to perform up to four times faster than its standard speed. Therefore these two new products were specifically designed to sell as a bundle or “Atlantic Bundle.” Jason Jowers, fresh off of his MBA degree is responsible for developing the pricing strategy for the “Atlantic Bundle. After much research Jowers narrowed down to four different routes on how the bundle can be priced: status quo, competitive, cost-plus, or value-in.
Should Lille Tissages, S.A. lower the price to FF15.00/m? (Assume no intermediate prices are being considered.)
· Price- the prices depend on the quality of the camera. The cheapest is the Hero 3 White Edition at £199.99, and the most expensive is the Hero 3+ Black Edition at £359.99. They offer free shipping around Christmas time to encourage sales. (GoPro website)
$46.0 to buy 458 V-22 Osprey tilt-rotor helicopters that have continuing safety problems and has already caused the deaths of 23 Marines this year
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
business on the model of selling cameras at low prices and keeping the focus on consumable
+Marking a test with lots of questions about digital camera to show that what consumers¡¯ need is, what they want and what motivation cause they to own a digital camera.
All items are hand-picked and have been established for 3 years. Mr Price will need to combat this threat by closing the gap where potential customers are escaping by merging businesses, or creating a competitive advantage. A competitive advantage is achieved by having lower prices, better quality, customer’s loyalty or best service. (Retief, 2015)
... about it. The website also has nice appearance, but not as professional as the first one. The big plus for this website is the forum dialog section where users can communicate to each other by sending messages in the context of the digital camera. The third website has the simplest looks of the three. Two best features of this are the active buyer’s guide (these virtual sales assistants give the best product recommendations based on one’s specific needs and uses) and message boards which is very similar to the megapixel’s user forum. One couldn’t say if one of the three is the best since they complimented each other very well.