Supplier Development at SysInteg C Case Solution

The Harvard Business Review published a case study that primarily focuses on Supplier Development at SysInteg C. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Supplier Development at SysInteg C has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Supplier Development at SysInteg C using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Supplier Development at SysInteg C faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Supplier Development at SysInteg C to ensure that the company is able to respond to all the changes in the macro-environment. This is because Supplier Development at SysInteg C cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Supplier Development at SysInteg C will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Supplier Development at SysInteg C.

• It is important for Supplier Development at SysInteg C to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Supplier Development at SysInteg C by impacting imports and exports.

Economic

• Supplier Development at SysInteg C can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Supplier Development at SysInteg C, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Supplier Development at SysInteg C with more investment opportunities.

• The flexibility in the labor market allows Supplier Development at SysInteg C to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Supplier Development at SysInteg C to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Supplier Development at SysInteg C to develop and align communication as well as marketing strategies accordingly.

• Supplier Development at SysInteg C has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Supplier Development at SysInteg C to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Supplier Development at SysInteg C should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Supplier Development at SysInteg C to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Supplier Development at SysInteg C should adopt eco-friendly products to establish better relationships with the stakeholders.

• Supplier Development at SysInteg C can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Supplier Development at SysInteg C should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Supplier Development at SysInteg C as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Supplier Development at SysInteg C can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Supplier Development at SysInteg C’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Supplier Development at SysInteg C.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Supplier Development at SysInteg C can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Supplier Development at SysInteg C operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Supplier Development at SysInteg C operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Supplier Development at SysInteg C to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Supplier Development at SysInteg C. The company can also switch suppliers for more reasonable pricing.

• Supplier Development at SysInteg C can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Supplier Development at SysInteg C industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Supplier Development at SysInteg C can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Supplier Development at SysInteg C can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Supplier Development at SysInteg C operates.

• Expensive substitutes are available in the industry of Supplier Development at SysInteg C, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Supplier Development at SysInteg C operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Supplier Development at SysInteg C operates has highly differentiated products, making it difficult for companies to win each other customers.

• Supplier Development at SysInteg C can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Supplier Development at SysInteg C can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Supplier Development at SysInteg C to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Supplier Development at SysInteg C has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Supplier Development at SysInteg C to have a high level of customer engagement (Rizaldi, 2015).

• Supplier Development at SysInteg C has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Supplier Development at SysInteg C has a strong brand image in the market.

• A low-cost structure of Supplier Development at SysInteg C has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Supplier Development at SysInteg C is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Supplier Development at SysInteg C has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Supplier Development at SysInteg C on its research and development is comparatively less to other competitors of the market.

• Supplier Development at SysInteg C uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Supplier Development at SysInteg C operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Supplier Development at SysInteg C. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Supplier Development at SysInteg C can take it as an opportunity to expand its online presence.

• Supplier Development at SysInteg C can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Supplier Development at SysInteg C can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Supplier Development at SysInteg C to expand its operations in multiple countries.

• Supplier Development at SysInteg C can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Supplier Development at SysInteg C, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Supplier Development at SysInteg C to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Supplier Development at SysInteg C.

• There has been constant pressure on Supplier Development at SysInteg C to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Supplier Development at SysInteg C.

VRIO Analysis

Supplier Development at SysInteg C uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Supplier Development at SysInteg C has a strong brand image and engages in corporate social responsibility.

• Supplier Development at SysInteg C has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Supplier Development at SysInteg C is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Supplier Development at SysInteg C focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Supplier Development at SysInteg C has been able to penetrate the market through its ability to raise large funds.

Rare

• Supplier Development at SysInteg C operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Supplier Development at SysInteg C has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Supplier Development at SysInteg C has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Supplier Development at SysInteg C is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Supplier Development at SysInteg C is its high-quality products. These products have allowed consumers to make repeat purchases.

• Supplier Development at SysInteg C operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Supplier Development at SysInteg C to attract more customers.

• Supplier Development at SysInteg C has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Supplier Development at SysInteg C maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Supplier Development at SysInteg C to explore more product development opportunities.

• Supplier Development at SysInteg C is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Supplier Development at SysInteg C that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Supplier Development at SysInteg C to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Supplier Development at SysInteg C to formulate effective strategies to achieve the company objectives.

Product

• Supplier Development at SysInteg C has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Supplier Development at SysInteg C to its customers. These distinctive products are not easily available at competitors.

• The products of Supplier Development at SysInteg C are of higher quality, and thus, customers pay more prices for these products.

• Supplier Development at SysInteg C designs products with traditional designs giving customers more product variety.

• Supplier Development at SysInteg C offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Supplier Development at SysInteg C to its customers.

Price

• Supplier Development at SysInteg C follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Supplier Development at SysInteg C for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Supplier Development at SysInteg C to its customers.

Place

• Supplier Development at SysInteg C uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Supplier Development at SysInteg C globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Supplier Development at SysInteg C has partnered with delivery service companies to distribute its products effectively to consumers.

• Supplier Development at SysInteg C has also adopted an omni-channel distribution system.

Promotion

• Supplier Development at SysInteg C uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Supplier Development at SysInteg C to increase brand awareness.

• Supplier Development at SysInteg C takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Supplier Development at SysInteg C also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Supplier Development at SysInteg C to attract and retain customers.

Value Chain Analysis

Supplier Development at SysInteg C can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Supplier Development at SysInteg C’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Supplier Development at SysInteg C has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Supplier Development at SysInteg C are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Supplier Development at SysInteg C has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Supplier Development at SysInteg C invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Supplier Development at SysInteg C to effectively devise and build sales and marketing activities.

• Supplier Development at SysInteg C offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Supplier Development at SysInteg C has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Supplier Development at SysInteg C has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Supplier Development at SysInteg C uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Supplier Development at SysInteg C has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Supplier Development at SysInteg C are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Supplier Development at SysInteg C can increase the capacity of its production so it can reach more of the customers in its existing market.

• Supplier Development at SysInteg C can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Supplier Development at SysInteg C in marketing and sales activities to increase the chances of successful market penetration.

• Supplier Development at SysInteg C can design and develop a content that increases customer engagement within a particular marketplace.

• Supplier Development at SysInteg C can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Supplier Development at SysInteg C to penetrate the market.

• Supplier Development at SysInteg C can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Supplier Development at SysInteg C can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Supplier Development at SysInteg C to mitigate the risk factors, and to gain customer groups of the market.

• Supplier Development at SysInteg C can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Supplier Development at SysInteg C to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Supplier Development at SysInteg C for growth purposes. This will also take into consideration the cultural differences.

• Supplier Development at SysInteg C should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Supplier Development at SysInteg C.

• Supplier Development at SysInteg C should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Supplier Development at SysInteg C should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Supplier Development at SysInteg C can come up with new improvements and modifications in the existing products to attract the market.

• Supplier Development at SysInteg C should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Supplier Development at SysInteg C to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Supplier Development at SysInteg C can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Supplier Development at SysInteg C can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Supplier Development at SysInteg C, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Supplier Development at SysInteg C can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Supplier Development at SysInteg C should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Supplier Development at SysInteg C should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Supplier Development at SysInteg C should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Supplier Development at SysInteg C is less affected by the new emerging competition in the industry.

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