Writer's Choice Assignment Example | Topics and Well Written Essays - 500 words - 1

Writer's Choice - Assignment Example This is because companies produce their goods to target the global market and sourcing is a core consideration (Lechner & Boli, 2011) Future global sourcing will depend on negotiated worldwide performance parameters, a globally incorporated market system as well incorporation of global professionalism especially in marketing, human resource, engineering and source groups. One effect of sourcing globally is that companies no longer source components but rather source in systems and services. This is important to companies because they not only have to produce affordable goods for the global market, but the goods need to be of right quality and standard. Companies which source systems therefore have an easier way of controlling quality and price. Another effect of global sourcing is that as much as companies would still prefer traditionally cheaper markets of China, Eastern Europe and India, they cautiously check the unknown costs that arise from sourcing in these markets (Lechner & Boli, 2011) The articles relate to the week’s topic because they fulfill the objective of evaluating how organizations can control cost of production by ensuring that standards and quality are observed when sourcing from a global market. This results in production of quality goods and services which meet global standards and consumed by a global market. Prior to buying of a system or even a product, purchasers usually would be interested in finding out an estimation of the total of direct as well as indirect charges included in a specific transaction. The comprehensive figure is what is called a Total Cost of Ownership. One main challenge that organizations go through while implementing a Total Cost Measurement system is the length of time required to come up with a comprehensive Total Cost Measurement System. This is because organizations have to go through

Online Sales - Amazon Essay Example | Topics and Well Written Essays - 1000 words

Online Sales - Amazon - Essay Example Amazon's brand has enabled them to pursue differentiation strategy. They have an excellent reputation due to their efficient one-click purchasing system, prompt after-sales service and tight security measures. Amazon are using innovative business models such as e-mail alerts, which deliver value in ways that have not been economically viable in â€Å"traditional† physical settings. Their distinctiveness is evident in their online value proposition "Earth's biggest selection." Their brand, accompanied by reputation and trust is difficult for competitors to imitate, making it a source of sustained competitive advantage. Barnes and Noble previously traditional intermediaries, now conduct business using both traditional and online methods. Due to its large share of traditional consumers and physical store outlets, Barnes and Noble are able to appropriate benefits of EC innovation in a manner that Amazon cannot match. (Kauffman, 2003) Our client is also ideally positioned to adopt any technical innovations Amazon may look to introduce. Crucial to Amazon's competitive advantage has been their ability to build affiliate/associate networks. "Amazon has in excess of 500,000 affiliates, which have links to the Amazon site." (Chaffey, 2004.) They have entered exclusive bookseller relationships with five of the top six sites on the web: AOL, Yahoo, Netscape, GeoCities and Excite. Amazon pays commission on sales referred from these sites. In return brand awareness, traffic and sales for Amazon increase enormously. The methodology selected is questionnaire and previous documents method. Questionnaire form of requirements gathering is best suitable for a large number of people in a relatively short period of time and can be less biased in the interpretation of results. It would largely save time on the vendor’s part but would generate no personal touch on each other’s part. The use of white papers and company financial sales reports are also taken into ac count for the purpose of the gathering the records. This form of requirements gathering takes place when the information is quite large for simple gathering methods.