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    Alpha Electronics Presentation

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    Anushree Khandalkar
    Alpha Electronics is facing pressure from Japanese competitors. It conducted a SWOT analysis identifying weaknesses in quality and training. Its current strategy focuses on global expansion, reducing costs, and leveraging its supply chain. It sources from low cost locations and uses multiple suppliers to mitigate risk. Alpha aims to integrate its supply chain for coordination and information sharing to reduce costs and times while improving quality. It evaluates strategic fit and implications on overcoming shortages, relationships, and faster product development.

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    Alpha Electronics Presentation

    Uploaded by

    Anushree Khandalkar
    569 views17 pages
    Alpha Electronics is facing pressure from Japanese competitors. It conducted a SWOT analysis identifying weaknesses in quality and training. Its current strategy focuses on global expansion, reducing costs, and leveraging its supply chain. It sources from low cost locations and uses multiple suppliers to mitigate risk. Alpha aims to integrate its supply chain for coordination and information sharing to reduce costs and times while improving quality. It evaluates strategic fit and implications on overcoming shortages, relationships, and faster product development.

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    Alpha Electronics is facing pressure from Japanese competitors. It conducted a SWOT analysis identifying weaknesses in quality and training. Its current strategy focuses on global expansion, reducing costs, and leveraging its supply chain. It sources from low cost locations and uses multiple suppliers to mitigate risk. Alpha aims to integrate its supply chain for coordination and information sharing to reduce costs and times while improving quality. It evaluates strategic fit and implications on overcoming shortages, relationships, and faster product development.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    569 views17 pages

    Alpha Electronics Presentation

    Uploaded by

    Anushree Khandalkar
    Alpha Electronics is facing pressure from Japanese competitors. It conducted a SWOT analysis identifying weaknesses in quality and training. Its current strategy focuses on global expansion, reducing costs, and leveraging its supply chain. It sources from low cost locations and uses multiple suppliers to mitigate risk. Alpha aims to integrate its supply chain for coordination and information sharing to reduce costs and times while improving quality. It evaluates strategic fit and implications on overcoming shortages, relationships, and faster product development.

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    Case Study: Alpha Electronics Global Strategy

    ADVANCED SUPPLY CHAIN MANAGEMENT PRESENTED BY:

    AMIT JAIN ANIRUDDHA BHATTACHARYA ANUSHREE KHANDALKAR ARNAB KUMAR ROY (01) AUMKAR WAYKER

    SWOT Analysis
    Strengths:

    Being the most successful consumer electronics firms, it has a strong brand name & is well established. The customers base of Alpha is also very wide. Executives are passionate & open to try new things. Learning tours to build competency and apply the global learning knowledge to strengthen its supply chain. Employee training for quality enhancement.

    Weaknesses:

    Low employee training, motivation & morale. Overall quality of its products, and business practices is very low. Their products seem to have high numbers of defects.

    Opportunities:

    Learn from the Japanese firms. Improvements in products, in terms of better quality. Introducing brands in new markets with improvements and innovations.
    Threats:

    Japanese firms have flooded the market with lowprices high quality products.

    How Alpha Electronics might have arrived at its current strategy


    Pressure to be responsive and cost-effective due to

    the entry of Japanese firms forced Alpha Electronics to makeover. Increased availibility of new product at cheaper price & of high quality motivated Alpha Electronics to focus on quality. The changing market forces towards high speed, flexibility, reliability , rising expectation of endusers, retailers made Alpha Electronics to revamp their business strategy.

    Similar Indian firms: M&M


    Mahindra Top Gear Programme: Aim to boost

    productivity by 50% in a year. Six principles followed by M&M are: Build Product Units Create Cellular Systems Deploy Flexible Processes Try to Cut Cycle Times Customize Your Shop Floors Let Your Workers Own the Factory

    Primary Business Strategy


    Principal Business strategy Global expansion of

    the firm Reducing costs Leveraging competitive advantage through diversification of Business Evolving through procurement and sourcing in domestic markets followed by cross - border procurement Launching newer products

    Supply Chain - Business Strategy Fit


    Emphasis on low costs and quality products Procurement from strategic locations where cost is low

    and consumerism high Asia, Africa Sourcing from multiple locations, not only from Japan to mitigate risks Developing an integrated supply chain co-ordination and information sharing from design to delivery Outsourcing to contract manufacturers/EMS Leverage their economies of scale

    Implications for the SC strategy above


    Overcoming Material Shortages Regular Availability of critical components & parts Procurement at low cost

    Good relationship with suppliers and distributors

    with a willingness to share information at every stage Faster product development Making design in house Outsourcing Manufacturing - Lower costs, lesser investment in fixed assets & inventories, concentrating at core competencies

    Efficient vs. Responsive Supply chain


    Efficient Supply Chain
    1. Main objective is of pursuing efficiency goals w.r.t Supply chain operations 2. Predictable demand for the product - functional 3. Cost optimization & maximum utilization of resources 4. Generate high turns and minimize inventory 5. Long term relationships with suppliers and better information sharing across the supply chain needed 6. Standardized production process with minimal differentiation

    Responsive Supply Chain


    1. Need to develop capability to respond faster to market requirements 2. Demand is uncertain for the product innovative 3. Reducing time to market/lead time 4. Deploy significant buffer stocks 5. Capturing POS data and immediate updating of the system using EDI and web linkages necessary 6. Postponement of differentiation

    Real Life Examples


    Efficient Supply Chain Responsive Supply Chain Fashion Apparel Nike, Zara

    Toothpaste manufacturer - Colgate

    Steel Producer SAIL, TSL

    Personal computers - Dell

    Oil Companies HP, BPCL

    Fast Food - McDonalds

    RnD Financial

    Operational

    Measures To Evaluate Success Of Strategy

    Operational Measures

    Quality Productivity Flexibility

    1. RFTR 4. Customer Complaints 2. No of Processes validated 5.Cost of quality failures 3. Quality awareness training

    1. Automation 2. Material Handling 3. Removal of Bottlenecks 4. Reduction in cycle time

    1. Time required to setup processes for new products 2. Capability to adjust processes according to changing volumes 3. Allowing variations in process sequence

    Time

    1. Time for NPD 2. Time required to source new raw material / parts from supplier 3. Time to market for new products 4. plc time

    Financial Measures

    Total sales

    Turnover of capital

    Value added

    Profit Margin

    Measures To Evaluate R&D Department


    Financial Revenue growth R & D spending Percentage of sales from new products ROI Profit growth Changes in market share Operational Number of ideas or concepts in the pipeline Number of New products or services launched Number of R & D projects Number of people actively devoted to innovation Others Customer satisfaction Potential of entire new product / service portfolio

    SC strategy
    Supply chain management - supply chain operations

    are controlled to reduce costs Supply chain strategy is an iterative process that evaluates the cost benefit trade-offs of operational components.

    External Considerations For SCM Strategy


    Customer Demand Market structure Customs clearances and duties

    Vendor selection
    Terms of purchases in international markets Performance of competitive firms Cross border taxes

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