– No losses to middlemen and retailers
– More customer feedback
– Customers who are more comfortable with picking their own computer preferences
– Can do wholesale for large company orders
– Can shorten days of inventory
The advantage of a direct business model is that the producer can maintain a good relationship with its customers and create better products
It allows you to have good relationships with customers& suppliers. So they know what kind of products customers want in the future.
The advantages of a direct market: better relationship with the costumer, control, obtain more information
Companies will develop a better understanding of their client base as well as retain more profit because no 3rd party is involved.
Selling products directly to customers is a great strategy. The company has more control over their inventories.
Some advantages of going direct to the market are the higher amount of feedback from customers and lower amount of storage space needed.
Direct Business Model advantages:
Decrease possibility of errors
More accurate info. about customers
Easier to keep days of inventory low
The business will have a direct relationship with the customers and this will allow them to react to changes faster.
they save on commissions; better access to the inventory -> better knowledge of customers’ needs.
Direct sales has a better control over its pricing and distributions.
By going direct, they can save more money, communicate with customers,react more quickly to change in demand.
One of the advantage of direct Business model is that the company can by pass intermediaries and it is cost effective.
Better customer relationships, prevents variability, less expenses, much more efficient from input to output. Shrinks entire process.
No reliance on third party distributors, selling products for cheaper, lower storage costs for inventory, and better customer relationships.
Almost $900 Million in inventory= Approx 3.1 million units (assuming $300 to produce)
Does anyone know for the reading The power of virtual integration: is the article with 14 pages? The link is not working and I found another
The link is not working for me either…. Could you link the other article you found? Is anyone else able to open the original on Connect?
The above link won’t work before its incomplete, just search it up at http://web.ebscohost.com
Choosing bigger planes may give customers more leg room, but it will also impose the opportunity cost of higher gas costs for the company.
The people in short flight who need to have a considerable price would take more pressure fromthe more cost on bigger size of plane lead.
Larger aircrafts require higher maintenance, resulting in higher costs.
More leg room=space that could be used for another customer. It depends on the flight. Westjet mainly does short flights,
big planes not efficient. Big planes would waste more gas and they risk not being full
Higher cost to the company for a price that customers may not be willing to pay. Profit and cost will not equal and company will deficit.
It costs more and less people would be able to fit in the plane.
Bigger planes need to spend more fuels, which would increase the total variable cost.
Maintenance on bigger planes would be more costly.
Technology problem , labour, more responsibility
It’s not efficient because the cost is higher (maintenance, fuel, etc)
Bigger planes are ideal for long routes, but for small routes it would be cheaper for the airlines to run smaller planes.
Choosing bigger planes may give customers more leg room, but it will also impose the opportunity cost of higher gas costs for the company.
Depending on the distance of the flight, the optimal size of the plane varies. Due to factors such as crew costs and fuel costs.
amnamasud 7:37 am on September 24, 2013 Permalink | Log in to Reply
It also reduces costs spent on intermediaries