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  • Case - Study - 1 (1) .PPTX With Change

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    MATEEN AHMED
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    Gateway chose not to carry finished-product inventory in its retail stores in order to focus on a build-to-order strategy and customization while controlling costs. Apple chose to carry inventory in its stores to enhance the customer experience and tightly control its limited product variants, allowing for impulse purchases. Products best suited for finished-goods inventory are standardized, have stable demand, and low obsolescence risk, while made-to-order products benefit from high customization due to low/unpredictable demand and high obsolescence/storage costs. Product variety affects a store's necessary inventory through demand forecasting complexity, inventory turnover, supplier relationships, and customer experience.

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    Gateway chose not to carry finished-product inventory in its retail stores in order to focus on a build-to-order strategy and customization while controlling costs. Apple chose to carry inventory in its stores to enhance the customer experience and tightly control its limited product variants, allowing for impulse purchases. Products best suited for finished-goods inventory are standardized, have stable demand, and low obsolescence risk, while made-to-order products benefit from high customization due to low/unpredictable demand and high obsolescence/storage costs. Product variety affects a store's necessary inventory through demand forecasting complexity, inventory turnover, supplier relationships, and customer experience.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    8 views9 pages

    Case - Study - 1 (1) .PPTX With Change

    Uploaded by

    MATEEN AHMED
    Gateway chose not to carry finished-product inventory in its retail stores in order to focus on a build-to-order strategy and customization while controlling costs. Apple chose to carry inventory in its stores to enhance the customer experience and tightly control its limited product variants, allowing for impulse purchases. Products best suited for finished-goods inventory are standardized, have stable demand, and low obsolescence risk, while made-to-order products benefit from high customization due to low/unpredictable demand and high obsolescence/storage costs. Product variety affects a store's necessary inventory through demand forecasting complexity, inventory turnover, supplier relationships, and customer experience.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    case study 1

    Gateway and Apple: Two Different Journeys


    into Retailing
    Group members
     Humna Naveed Abbasi
     Obaid Asif
     Hassan chaudry
     Hassan Saeed
    Why did Gateway choose not to carry any finished-product inventory
    at its retail stores?Why did Apple choose to carry inventory at its stores?

    Gateway decision
    • Build-to-Order Strategy
    • Customization Focus
    • Cost Control

    Apply decision:
    • Customer Experience
    • Highly Controlled Product Variants
    • Impulse Purchases
    What are the characteristics of products that are most suitable to be
    carried in finished-goods inventory?
    • Standardization
    • Stable Demand
    • Low Risk of Obsolescence
    What characterizes products that are best manufactured
    to order?
    • High Customization
    • Low Demand & Unpredictable Sales
    • High Risk of Obsolescence
    • High Storage Costs
    How does product variety affect the level of inventory a retail store must
    carry?

    Ways of affecting inventorey


    • Demand Forecasting Complexity
    • Inventory Turnover
    • Supplier Relationships
    • Customer Experience
    Is a direct selling supply chain without retail stores always less
    expensive than a supply chain with retail stores?
    • It's not always the most cost-effective option.
    • The decision depends on various factors like industry,
    product complexity, target market.
    • In many cases, companies might find a hybrid approach -
    utilizing both direct selling and select retail partnerships -
    to be the optimal strategy for their specific situation.
    What factors explain the success of Apple retail and the failure of
    Gateway country stores?
    • Customer Experience
    • Inventory Management
    • Brand Image
    Gateway Country Store Struggles:
    • Inventory Strategy
    • Limited Customization
    • Location
    Thank you

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