Chapter 5: Purchasing and Supply Management Organization
- The role of organizational design
- Centralized versus de-centralized operations
- Future trends in supply chain management
>Chapter 6: Category Strategy Development
- The difference between category strategies and sourcing strategies
- The category strategy development process
- Types of category strategy outcomes
- Supply management transformation initiatives
>Wall Street Journal: “Amazon to Launch Its Own TVs in Push to Cement Itself in Living Rooms,” Link: https://www.wsj.com/articles/
Please review the assigned materials for answering the questions below.
Questions ——————————
- How will launching Fire TV sets likely influence the organizational purchasing and supply management (P/SM) organization for Amazon (See Exhibit 5.2)?
- Describe how Porter’s Five Forces (Exhibit 6.10) can be used to create a Strategy Portfolio Matrix for Category Management (Exhibit 6.12) that Amazon can use to create a competitive advantage in the market for television sets.
- Discuss how Amazon can manage “Supply Chain Transformation” (page 237) utilizing the stages of supply management strategy evolution (Exhibit 6.14).
- Please provide an insightful question about category strategy development.
Due dates: ==============================
>Initial comments to questions: Thursday, September 16th at 11:59 p.m. Central Time
>Responses to other students: Sunday, September 19th at 11:59 p.m. Central Time
Requirements: as needed
the professor told us to use exhibit 6.13 instead of exhibit 6.14
Answer preview
The threat of new entrants is low since producing TVs requires significant capital and technological know-how. The buyer bargaining power is moderately high because of the availability of substitutes and price sensitivity. However, the supplier bargaining power is low because of buyer price sensitivity and the availability of other suppliers. There is a lot of pressure from substitutes since there are several TV companies in the market, each looking for a way to increase its market base through various innovations and differentiating its products.
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