Globalization and across the board Internet network are offering to ascend to broadened and interconnected supply chains that mismatch the globe. As organizations wander into new markets and manage providers and clients crosswise over fringes, their supply chains turn out to be more unpredictable and are a higher hazard to business progression (Christopher, 2016). Companies are going global with a supply chain. For instance- coco-cola; the company follows the globalized supply chain.
Coca-Cola is adopting globalizing supply chain because a company wants to meet the dynamic need of the growing market and the new consumer segments. It helps the company in managing the balance between the risk caused by economic and political uncertainties (Coca-Cola, 2017). The organization is globalized in 2 Dimensions. Vertically, a company is globalized along with the supply chain and of a relevance of the franchising system. The supply chain of the company contains 300 bottling partners across the world. Horizontally, the company is globalized in different regions that include 6 operating groups such as Eurasia, Europe, Africa, Latin America, North America, and Pacific.
This globalizing supply chain helps the company in connecting the operations of the company with advanced cost. For managing the Ford and logistics charges company has to pay a tariff, transportation, tax, duty. But with the help of globalized supply company reduce the production cost by adopting new technology, by adopting new qualified employees, etc. Though, for adopting new technologies company need to perform investment. The company needs to bear the risk while adopting new technology (Marshall, McCarthy, McGrath, and Harrigan, 2016).
Globalising supply chain enables the opportunity for the companies for expanding the business in the new market. The coca cola company is following horizontal supply chain which helps in dealing with multiple companies (Mangan, and Lalwani, 2016). This leads to the success of the company. Though, on the other hand, a company might face large-scale management issues related to the inventory and distribution issues. The company should manage the issues with the help of the globalized supply chain. Global quality shows a rise in relation to the high level of quality among the competitive products or services across the world. The globalized supply chain can help companies in enhancing the quality with the use of the advanced technologies and by adopting different types of raw materials. Though, operating the logistics across the border may lead to the legal issues for the company. The company needs to take care of the legal laws and policy that can create an impact on the working of the company.
The implementation of the globalized supply chain will lead to the success of the Coca-Cola Company. Though there are some of the issues that the company has to face still, a globalized supply chain is beneficial for the company. This enhances the quality of the products and services; this will lead to the opportunity for the company to grab the attention of the new customers and will also motivate the companies to adopt new technologies. Ultimately, the working of the company will become effective and this leads to the success.
The companies can enter into the new markets to deal with the customers and the vendors across the border. Globalization and across the board Internet network are offering to ascend to broadened and interconnected supply chains that mismatch the globe. Though, the globalized supply chain consists of risk and complexity of a business.
Apple Company has adopted globalizing supply chain that results in the growth and success of the company. Apple is one of the leading companies in the market across the world. According to the Gartner research, Apple’s supply chain has ranked#1 across the world in the year 2012 and 2013. Apple supply chain consists of 785 suppliers in approximately 31 countries. Out of these 349 suppliers are based in China. The supply chain of the company includes new manufacturing partners in Taiwan and China (Gartner, 2015).
Globalising supply chain brings a positive as well as negative impact on the operations of the company. The company started focusing on the manufacturing of innovative products for the use of the advanced technology. The adoption of the advanced technology is possible because of globalizing the supply chain. Though, a company had taken a risk while bringing innovative products to the market. A company is trying to bring diversification in the customized manufacturing equipment and milling technology. For this apple company is strategizing to do tie up with multiple suppliers for the single product (Banker, 2012). This will help the company in enhancing the competitive advantage on competitors. Though, managing suppliers at the same is a challenge for the company. The company should reduce the key suppliers of the single products that are involved in manufacturing, storing and shipping. Due to the globalized supply chain; the warehouses of the products are increasing in numbers. This leads to a challenge of synchronizing data of the stock with the central warehouses. To reduce the challenged company should try to centralized warehouses at one location this will help in making the operations more cost-effective and more efficient. This efficiency will lead to the success of the company (Clarke, and Boersma, 2017).
“An incredible measure of Apple’s supply chain achievement can be credited to them proceeding to outline their items in California while utilizing the lower cost of outsourcing assembling to China.” – Original quote from Jonathan Hamilton (IT Consultant) (Black, 2015). This supply chain helps in enhancing the outsourcing partners of the company. These outsourcing partners help in enhancing the business activities and lead to the success. Though, a company is totally depended on the services provided by the outsourcing partners. Along with this company relies on the partner to follow the supplier code of conduct. Keeping the challenges aside the company is gaining reputation and a good brand image in the market.
Target market defines as a market where company wants to sell the products and services. This market consists of the set of customers to whom company directs its marketing efforts. Zara is a Spanish clothing accessories retailer that is based in Arteixo, Galicia. The company was established by Amancio Ortega and Rosalia Mera. Currently, the company operates approximately 2,100 Zara stores located in 88 countries. Whenever a business decides to establish the operations in foreign countries they use different modes of entry such as licensing, franchising, wholly owned subsidiaries, joint venture etc. similarly Zara also uses different modes of entry to expand the business.
Zara market consists of both men and women, age group of 18-40 years with the middle range of incomes. The target client is extremely designed forward and drifts cognizant, living in an urban zone. They are either looking for themselves or for their kids. Zara’s clients are certainly delicate towards having the most up to date and in vogue garments and adornments however at a moderate cost (Zara retailer, 2017). The most common mode of entry used by the company includes own subsidiaries, joint ventures, and franchising. A wholly owned subsidiary is a company that is fully owned by the other company. To enter the Indian market, Zara used the strategy of a joint a venture with Trent limited, a Tata group company. Joint venture is undertaken by 2 or more companies. Franchising is one of the modes of entry that is used by the company to enter into the market. It is a practice of the right to use firm business model and brand for a prescribed period of time (Ang, Benischke, and Doh, 2015).
Zara has maintained a reputation and a brand value for targeting the teenagers. The company has established a space in the market. The target customers of the company include youth who believes in wearing a brand according to the trend. Youth believe that it adds value to their social status. The change in the trends and fashion result in the change in the customer behavior and purchasing power of the customer. Though, this creates a problem for the company as company has to produce according to the demand of the customer. Sometimes company produces some fashionable or designers stuff. The stuff changes the demand of the customers and gradually this became a trend for the customers (Viardot, and Nylund, 2017).
Zara is one of the leading and popular brands in the market across the world. The company entered into the foreign market by using different modes of entry. After the selection of the place or country, a company decides the mode of entry into the country. For instance, for Chinese Market Company decided that franchising will be the best option. On the other hand to enter into the Indian market company decided joint venture as a mode. Though, the selection of the mode of entry needs proper analysis on the country where the company is willing to expand the business.
The target market of the Ford includes the set of customers to whom the company wants to sell its end products. The target market of the companies varies according to the products and services that they are providing to their customers. The company is American multinational automaker. The company was founded by Henry Ford. The company uses a different mode of entry to make the space in the competitive market. Modes of entry into the foreign market consist of franchising, joint venture, own subsidiaries, etc.
The company uses differentiated strategy in the business to target customers. The company believes in satisfying the needs of the customers by providing a different form of economy cars such as sports car, luxury car, sedan and hatchback cars (Boone, and Ozcan, 2016). The new model of the company Ford Fiesta is designed to target the youth including both men and women. Targeted youth consist of the age group of 18-25 years old with the average income slabs. The car is best in the segment and suitable for the unmarried or for the nuclear family. According to this ford target the customer who can actually buy the product.
The mode of the entry that is used by the company includes exporting, licensing, and joint venture. Most common mode of entry used by the company includes licensing in which company takes permit to enter into the market (Waller, Bradley, Hosking, and Clarkson, 2015). Apart from licensing company also uses exporting in which company exports its product directly to the other country. In the automobile industry, it is, quite normal to get the car from the foreign countries.
The target market of the company depends on the product that the company is offering to customers along with the demands of the customers. According to the requirement, the automobile company brings updated version and keep adding a new model in the product. This enhances the scope for the company in terms of the target market. The company tries to fulfill the requirement of the target segment by adopting advance technologies (Zhou, et.al. 2015). This will ultimately lead to increase in the demand for the product. Higher demand of product enhances the sales and profitability of the company. This will lead to the success of the Ford Company.
The company decides the mode of entry seeing the target market of the company along with the economic condition of the company. The major mode of entry that is used by the company is exporting; most of the customers across the world try to export the product. For instance, ford manufactures a car in the UK but they sell or export the cars in Germany, in spite of having a manufacturing unit in Germany. This shows how exporting of cars take place and how its benefits the company in tapping the business in the international markets. This help in enhancing the brand value of the company (Hennart, 2014).
References
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