Case Study Smartguy

2251 Words10 Pages

1. In which market does Smartguy operate?
Smartguy consist of: smartguy.dk (menswear and boy fashion), smartgirl.dk (women's and girls' clothes), smartkids.dk (children's clothing), smartmen.dk (menswear and business clothing), smartsport.dk (as in sportswear). This means that the company operates in many markets, as the company has many business areas. All domains are gathered under one roof in Jyderup from which the distribution is managed, however Smartguy are soon moving to Copenhagen(???). The company has high hopes for the future and expects a turnover of 1 billion kr. by 2015, Net sales totaled 340,206.00 kr. in 2011/2012, so there is still a long way to go. However, Smartguy think that the 1 billion is still a realistic goal, because …show more content…

Make a value chain analysis.
The value chain consists of various primary activities, which are divided into up-stream activities and down-stream activities that, among others, covers the incoming and outgoing logistics. In addition, the primary activities are coupled with a number of support activities, which should help to increase the efficiency and functionality of the company.

The first part of the primary activities belongs to the inbound logistics. In Smart Guys case, the incoming logistics do not consist of raw materials for production, but instead of receiving clothing deliveries from suppliers. The delivery of the clothes and the inbound logistics consists of ordering clothes from suppliers => Transport => Delivery => Handling => Inventory => Product Control => Buying new clothes. A support activity includes an optimized IT system that keeps track of when Smartguy should buy more clothes and for how much. Smartguy are therefore in the inbound logistics highly dependent on suppliers to comply with the agreed terms of delivery time and size. They place high demands on packaging and labeling of products, as this will improve their internal management. Especially their IT and communication plays a significant role according to Smart Guys …show more content…

However, this is a superfluous activity to be included in the value chain, as Smartguy do not produce any of their products themselves. The next point would thus be the outbound logistics, where the products are sold to customers. Distribution is particularly important for e-commerce companies, as this is a competitive factor. Shipping Cost and delivery time are becoming more important to customers, which means that competition between firms has intensified. If an order is received before 16:00, it is packed the same day - and delivered the next. To fulfill this Smartguy have hired youth workers who work part-time on weekends and evenings. It is analyzed to be extremely positive, since it minimize costs and create value for

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