Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
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
As a manager of housekeeping service. which one is a better strategic option,  horizontal and vertical integration, ? Why
How has competition to McDonald’s changed over its existence? What are the main operations performance objectives for McDonald’s?
Fuel Up Restaurant is nestled near the bustling library of Westford University, "Fuel Up" isn't your typical collegeeatery. Forget greasy pizza and microwaved burritos; Fuel Up serves up fresh, healthy, andenergizing meals designed to fuel students' minds and bodies for the academic grind. This casestudy delves into the inner workings of Fuel Up, analyzing its operations through the lens ofproduction and management principles. Fuel Up's primary customers are Westford University students. Their main competitors includethe campus cafeteria, fast-food restaurants, and nearby convenience stores. Fuel Up differentiatesitself through: Health-conscious focus: Filling a gap in the market for healthy and delicious food, appealing tostudents prioritizing wellness. Convenience and customization: Offering quick service and customizable meals cater tostudents' busy schedules and dietary needs. Sustainable practices: Minimizing waste and promoting local sourcing resonate withenvironmentally…
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
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
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.