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Eliminate the middleman? Case Study: Eliminate the Middleman? US Tech
Ü Market positioning ¡V more features than commodity ...
... The Internet also serves to market Dells key message, which is to eliminate
the middleman and allow customers to buy direct. Dell ...
... The price for consumers would not increase because of the effort to decrease the
dependency on the middleman. This would eliminate the price increase that ...
... The use of EDI program between Supplier and Wal Mart not only saves time
but also it will help to eliminate the cost of middleman. ...
... brand image toward younger audiences without losing loyal repeat customers d)
Dell.com • Vision: Custom-build computers to eliminate middleman and more ...
Submitted by anakawai on June 28, 2006
Category: Business
Words: 1038 | Pages: 5
Views: 262
Popularity Rank: 38,172
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Case Study: Eliminate the Middleman?
US Tech
ƒÜ Market positioning ¡V more features than commodity and lower price than higher-end rivals
ƒÜ Goal ¡V number 3 spot in the global market
ƒÜ Competitors ¡V CaliTech and TexaTech
„c Produce innovative products and pull down price (20% cost cutting by sourcing directly from China)
Ć Sourcing directly from China
„c Indirect cost (government bureaucracies and long distance logistics breakdown) and low quality
„c Prices were undeniably attractive
„c Access to Chinese market
Ć TaiSource
„c World-class research and design and lower manufacturing costs
„c Can become USTech¡¦s competitor if it decided to enter China using its own brand
ƒÜ Multi-sourcing ¡V increase operating cost
Ć TaiSource strategic initiatives
„c Broadening our production base to other Chinese cities
ƒÞ Improve economic of scale (purchasing and manufacturing)
ƒÞ Cost saving
„c Establish an R&D office in the U.S.
ƒÞ Work closely with USTech on product innovation
„c Ship products directly to your U.S. warehouse
ƒÞ Cutting logistic cost
Problems of sole-sourcing
Ć The major benefit of sole-sourcing is simple management and the cost of managing multi-sourcing is seen to be higher. Whereas, relying on a sole original design manufacturer (ODM) for both development and production of technology products is risky because USTech may have seen the supply of his business through the supplier prospective, in this case, TaiSource. It also has less control of the quality and cost of production. Given that the vendor may not always disclose everything to USTech, the firm may not have enough knowledge of its vendor capabilities and whether it is competitive.
Ć Facing the demand of information technology products in mainland China, TaiSource has the ability to use its own branded products to...
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