Question 1 (P1.1) ISO 9000 Quality Management: Description : A Brief description of this standard is created to help any organization and makes sure that they meets customers satisfaction while still meeting all the product requirements given. But the main concern of this standard is the quality of the end product. Advantages: This is because it focuses mainly on the quality of the product so that it would be up to the client’s expectations, and this is usually done in a very efficient manner. The reason for the efficiency is because the quality management standard creates guidelines intended to increase both efficiency and more importantly customer satisfaction. The main purpose of the standard is to reduce unnecessary costs, increase
If it did control our acts, the savings in cost of distribution would be tremendous. Advertising would be a contact of the expert consultant with the customer, in order to give the customer the best product available when all of the customer 's needs are considered. Competition then would be in improving the quality of products and increasing efficiency in producing and distributing them; not in deception, as is now too customary. Pricing would reflect efficiency of production; it would not be selling a dodge that the customer may well be sorry he accepted. It would be proper for all concerned and rewarding for the ability used in producing the product” (Sharplin,
This solution provides Endius with the lowest risk solution for bringing the forceps to market in the short-term, and helps build the long-term infrastructure to ensure the company's long-term success, as well. Strengths The primary strength of Endius is its management team. Davison has expressed a willingness to loan Endius the requisite cash to continue development, but his inclination is to work with Product Genesis since he knows their track record and is comfortable that they can complete the work on time. The cost is lower than that associated with an external product development team, which can be a key concern to a company with cash flow problems. The result is that patients recover faster and with less pain, and the procedure itself can also be less expensive than traditional approaches.
Following are the strategies that the company followed to remain a market leader in the industry; • Mass Production at Low Cost The company ensured that it produces in large quantity so as to gain benefit of economies of scale and reduce costs. It allowed the company to save cost and reduce unit costs which was very useful in a competitive market as it allows the management the flexibility over price without affecting gross profit margin. • Extensive Advertising It was company policy to do extreme advertising as they regarded marketing as essential factor in success. The company was able to start innovative marketing campaign at the beginning of its creation where it targeted the customer needs. With use of its marketing campaigns, the company was able to secure enough customer loyalty that the customers were not trying new products even though these were of better quality.
• Effective and efficient service: the service provided by the monopolist companies would be efficient and effective as they would be sole provider of that particular product or service, as such extra care and attention will be paid in providing better service to the consumers. • Induces innovation: the supernormal profits that these monopolies earn would motivate them to invest more in research and development for further innovations which in turn leads to production of improved products and
Since full market segmentation is highly expensive, segmenting the market according to the customer helps in reducing the cost of marketing hence utilising the resources for productive purpose. In other words, it avoids unnecessary spending on advertisement where it is not required. Since it deals with markets of smaller size, the marketers can directly deal with the customers and create a lasting buyer-seller relationship and hence can retain the customers. Since the market segmentation helps in maintaining the existing market, it leads the organization to expand and also increase the market share. While making a market segmentation one must remember that selecting a market with suitable conditions is very important.
The competition between businesses will ensure better quality of their goods and service they provide. Competition is well known for providing great productivity which leaders to a growth in the economy. Not only can competition improve the quality of work, it can also improve innovation. Innovation is an important quality to have in a company because it aids in keeping products and services fresh. “Economic Influence on Marketing” claims, “To keep current, your business has to adapt to changes in the industry and must always keep its eye out for innovative, cutting-edge technology and product improvements” (Bradley).
Despite these polished strategy summary, companies put all efforts to save money, for instance if the cost of repairing, donating (corporate social responsibilities) and loss due to damage is lesser than that of constructing the best infrastructure at first place in long run, the companies will invest in repairing rather than building perfectly at first place. These will help them cut the cost and use the capital for other growth and expenses. Thus, the actual strategies are very different from stated strategies. (Smit and Trigeorgis,
Market Orientation According to Naver and Slater (1990), market orientation is one of the organizational cultures which will lead to high performance of a business. This is because the business is able to provide customer superior value with lead cost and time. Market orientation includes customer orientation, competitor orientation and interfunctional coordination. Market orientation will lead to new product performance whether the new product is achieving customers’ expectation or out performing than their competitors (Zhang & Duan, 2010). From Zhang and Duan’s research (2010), market orientation is important than innovation orientation, because customers’ expectation was studied and innovation of new product was built according to customers’
With dropshipping it is possible that one business can sell anything right from a hairpin to a advanced machine.But the main talent lies in the communication skills of the person to convince wholesalers to supply products to him. The scope to expand business is easier and faster in this method of business. Disadvantages -- The margin is quite low in the dropshipping model. Marketing costs needs to be incured, plus the supplier would keep his markup. This makes it very difficult to gain higher returns, keeping in mind the growing competition in the market.