Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
Question
Book Icon
Chapter 1, Problem 2DQ
Summary Introduction

Interpretation: The competitive priorities of the online platform and the focus of its operations strategy is to be identified.

Concept Introduction:

Competitive priorities can be defined as the dimensions that should be included in a production process to fulfil the needs of the internal or external customers now, and in the future. This concept is crucial in goal achievement and ensuring business performance in the long run.

Expert Solution & Answer
Check Mark

Explanation of Solution

Competitive priorities of the online platform A are as follows:

  1. Low-cost operations:
  2. It has a low-cost base due to the absence of physical retail outlets. Further, the online marketplaces have allowed the online platforms to sell more units without an increase in marginal costs. This has led to a decrease in the consumer prices.

  3. Delivery speed:
  4. One of the key reasons for its success has been due to the use of superior logistics and distribution networks. As a result, the order fulfilment rates have become better leading to a competitive edge over other players.

  5. Variety:
  6. It has an extensive range of products which is one of its key strengths. Its products are sold by a wide variety of sellers across several global markets. Moreover, it has also adopted a strategy in Asian markets that suits their local needs.

    The areas where its operations strategy should focus on are as follows:

    The key focus should be on winning the competition despite the pressure from other players in the market. The main reason for this is the imitable business, and hence, the company should plan its operations to create differentiation with other players.

    Although it is operating in a low-cost operation model, still there have been losses recorded in certain parts of the world such as India. It offers free shipping to its customers and, as a result margins have eroded. Therefore, the company should increase their margins at least for high risk products or else focus on reducing shipping costs.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
PS.53 Brother I.D. Ricks is a faculty member at BYU-Idaho whose grandchildren live in Oklahoma and California. He and his wife would like to visit their grandchildren at least once a year in these states. They currently have one vehicle with well over 100,000 miles on it, so they want to buy a newer vehicle with fewer miles and that gets better gas mileage. They are considering two options: (1) a new subcompact car that would cost $18,750 to purchase or (2) a used sedan that would cost $12,750.They anticipate that the new subcompact would get 37 miles per gallon (combined highway and around town driving) while the sedan would get 26 miles per gallon. Based on their road tripping history they expect to drive 13,000 miles per year. For the purposes of their analysis they are assuming that gas will cost $2.93 per gallon.Question: How many miles would the Ricks need to drive before the cost of these two options would be the same? (Display your answer to the nearest whole number.) (Hint:…
TisjTzktxydudu
Not use ai please
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Text book image
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning