Global brands Global Branding and Organizations
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| Global Branding and Organizations Pros Branding provides an opportunity to reach new groups of consumers. An efficient strategy promotes brand awareness which, in turn, can help achieve superior profits. In combination with an appropriate pricing strategy, branding can support the realization of a product as an asset and contribute to the growth of brand equity. The more valuable the brand or the firm will be, the greater barriers to market entry for new competitors it will create. It means that branding is essential to gaining a leadership position. Cons With the increase in brand awareness at the global scale, the number of cheap and illegitimate product substitutes grows proportionally (with approximately 1-to-8 ratio). These fake brands take a significant share of profits and jeopardize the integrity of genuine brands. Sometimes the outcomes of branding may be counterproductive − customers become more and more suspicious of big brands as they impact the local environments forcing “a grey cultural homogeneity on the world” (“The Case of Brands”). As a result, consumers may prefer smaller brands over the global ones. Global Branding and Customers Pros Since branding implies the development of customer loyalty and trust, by purchasing goods produced by famous brands, potential consumers can obtain such values as quality. Global branding provides more consumer choice options and, in this way, allows potential consumers to fulfill a plethora of their needs and interests. Cons The adverse effects of globalization accelerated by branding include ecological deterioration, inability to sustain in the market for local small businesses, promotion of cultural homogeneity, informational pollution, etc. Brands tend to sell “superior lifestyles” along with their physical goods (“The Case of Brands”). When brands play on the psycho- emotional needs of customers, sometimes they tend to buy unnecessary items. Discussion Brand image is more than just a complex of logos, color solutions, and labels. The brand is also a message conveyed to consumers. It comprises both tangible and intangible values. Therefore, the influence of the brand on a person is tremendous. Moreover, the very fact of buying a particular product often demonstrates what interests and qualities the buyer may have because every purchase can be regarded as an act of self-identification. Thus, if branding is carried out correctly, the influence of the brand on consumers may be powerful. For companies, branding can help gain such advantages as increased brand awareness and greater customer loyalty which, in turn, can result in better financial performance. Moreover, branding is core to successful international market entry. Efficient branding (i.e., product localization, etc.) can help a firm to address the needs of local consumers much better and reduce the risks associated with entering new markets. However, along with raising brand awareness, companies may contribute to the development of counterfeiting and piracy. The illegitimate goods are always produced as replicas of the most successful premium products. Since the fake items are cheaper, they attract the lower-income buyers who cannot afford the genuine goods. As a result, the brands suffer losses in terms of finances and brand value as well. When speaking of consumers, the major advantages of branding they receive include the opportunity to purchase products of higher quality. Global trade largely contributed to product diversification in most parts of the world, and now consumers can find a brand that meets their peculiar interests based on the price, authenticity, exclusiveness, etc. However, from another point of view, global branding does not allow local firms to succeed as it is hard for them to compete with international giants. Other adverse effects of branding are associated with globalization and international trade as such. They are environmental deterioration, human rights’ abuse, unfair business practices, etc. which negatively influence the social welfare. Moreover, to increase product demand, marketers identify the emotional and psychological needs (e.g., self-enhancement, etc.) of potential consumers and develop images which, as they suppose, may promote the desired purchasing behavior. In a way, the given approach is unethical. Supply chain management What Does Supply Chain Management Mean? Supply Chain Management (SCM) is the handling of the flow of goods and services from the raw manufacturing of the product through to the consumption by the consumer. This process requires an organisation to have a network of suppliers (that serve as links in the chain) to move the product through each stage. Why Is Supply Chain Management Important? Effective Supply Chain Management improves the financial position of an organisation by delivering value linked to the organisations corporate strategy. Supply Chain Management plays a significant role in customer satisfaction through the delivery of products and services. Good supply chain management is critical at reducing operating costs from Procurement activities, through operations and logistics functions and throughout the whole supply chain. The scale of profitability for large organisations is relative to the management of an organisations supply chain. Supply Chain Management also has a lesser publicised societal role – ensuring that the basics necessities humans depend on like, food, energy, medicine and modern infrastructure are flowing and available. What Are the 6 Components of Supply Chain Management? Planning – Make vs buy decision to understand whether you will manufacturer or buy domestically or internationally. Sourcing - Identifying, evaluating and building relationships with suppliers that will provide goods and services Demand/Inventory - Managing inventory and manufacturing schedules to meet consumer demand. Production - Ensuring the right volumes and quality of production. Warehouse & Transportation - Storing and delivering the product effectively. Return of Goods - Ensuring an effective returns process for customer satisfaction. These six components enable to you provide effective Supply Chain Management. CIPS Knowledge-related topics, best practice guides and white papers include: Guidance to support the development of organisations supply chain activities, from setting strategy through to operational developments, supporting organisations to build efficiencies into their supply chains to develop supply chains of the future 5 Parts of SCM In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which consists of five parts: The plan or strategy The source (of raw materials or services) Manufacturing (focused on productivity and efficiency) Delivery and logistics The return system (for defective or unwanted products) The supply chain manager tries to minimize shortages and keep costs down. The job is not only about logistics and purchasing inventory. According to Salary.com, supply chain managers “oversee and manage overall supply chain and logistic operations to maximize efficiency and minimize the cost of organization's supply chain."1 Productivity and efficiency improvements can go straight to the bottom line of a company. Good supply chain management keeps companies out of the headlines and away from expensive recalls and lawsuits. SCM vs. Supply Chains A supply chain is the network of individuals, companies, resources, activities, and technologies used to make and sell a product or service. A supply chain starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer. SCM oversees each touchpoint of a company's product or service, from initial creation to the final sale. With so many places along the supply chain that can add value through efficiencies or lose value through increased expenses, proper SCM can increase revenues, decrease costs, and impact a company's bottom line. Example of SCM Understanding the importance of SCM to its business, Walgreens Boots Alliance Inc. decided to transform its supply chain by investing in technology to streamline the entire process. For several years the company has been investing and revamping its supply chain management process. Walgreens was able to use big data to help improve its forecasting capabilities and better manage the sales and inventory management processes.2 This includes the 2019 addition of its first-ever Chief Supply Chain Officer, Colin Nelson. His role is to boost customer satisfaction as the company increases its digital presence. Beyond that, in 2021, it announced it would be offering free two-hour, same-day delivery for 24,000 products in its stores. Yüklə 414,2 Kb. Dostları ilə paylaş:
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