Alset is a company which is planning to introduce a new phone Sparki. For this purpose it needs suppliers. Using theoretical concepts, describe the competitive industry of the suppliers mentioned below.Use Porter's Model to explain how aligning with suppliers that see Alset as a preferred customer of data projectors is critical for Alset. Summarise your market intelligence, with specific reference to the suppliers contacted in your selection process. Please use journal references if needed.

Taegeuk Nangja: Relevant Taegeuk Nangja data from their tender response include: FOB quoted price = $134 AUD, however quoted as currency in South Korean Won Ramp up time = 13 weeks Delivery lead time = 5 weeks (from time to order to day received) Line capacity = 12,000,000 units Current installed capacity for data projector production = 95% On-time delivery record = 98% on-time (for current customers) Quality = 8,000 defects ppm Minimum batch size = 10,000 units for mini container Currency denomination = South Korean Won Price basis = FOB = Free On Board Tooling cost = $1.1 million plus any extras deemed required on final contract Payment Terms - payment on Bill Of Lading (prior to departure of ship) - approx 4 weeks prior to delivery Relevant Alset data specific to Taegeuk Nangja include: Frequency of Shipment = four weekly Estimated day of arrival = Every Fourth Monday Ordering cost per order = $750 due to needing all paperwork and individual orders prior to shipment Receiving cost per delivery = $550 for unloading container and inspection Sea transport (ship) = $38,500 per batch in mini container Land transport (truck) = $7,000 per batch in mini container including load / unload and transport from Sydney to Wollongong Duties / customs / tariffs = $31,000 per batch in mini container Insurance = $19,800 per batch in mini container Financing Cost = Total Cost of Units X 4 weeks / 52 weeks X 4% since Alset will pay for the items 4 weeks prior to receipt in store It must be noted that regional instabilities between South Korea and North Korea pose a threat to international sourcing as there is potential political and economic risks with region predicted within the next two years. FernFuel: DAT quoted price = $143 per unit Ramp up time = conservatively 3 months Delivery lead time = 2 weeks (from time of order to day received) Current utilised capacity = 83% Current installed capacity = 4 million On-time delivery record = 93.5% on-time (but measured as DIFOTIS) Quality = from experience 13,000 defects ppm as a maximum on any initial orders, with any issues usually attributed to tooling aspects that would be worked out within the first month during pilot testing, dropping to well less of this ongoing Minimum batch size = 4,000 units for optimizing transport options on a purpose designed pallet, which could be recycled and reused Price basis = DAT = Delivered at Terminal to Sydney (Port Botany), with customs and duties payable, expected to be low Tooling cost = $1,655,000 as a maximum, downside to budget maximum to Alset through an open book arrangement Relevant Alset data specific to FernFuel include: Frequency of Shipment = Fortnightly Estimated day of arrival = Every second Thursday Ordering cost per order = $160 due to individual purchase orders fortnightly Receiving cost per delivery = $160 for unloading container and inspection Land transport (truck Sydney to Wollongong direct) = $2,600 each pallet including load / unload and return transport of the pallets Insurance = $0.14 per unit while in transit, including the pallets Duties / customs / tariffs = $0.68 per unit - due to the lower tariffs paid on New Zealand goods and lower customs clearance due to the pallet design NADESHIKO TECH: FAS quoted price = 11,586.34Yen. Today conversion rate is 94.97JPY to 1AUD Ramp up time = 15 weeks Delivery lead time = 6 weeks (from time of order to day received) Current installed capacity for data projector production = 84% Market Share = 32.82% Plant Installed Capacity = 41,000,000 units On-time delivery record = 95.5% on-time (for large customers, somewhat less for smaller customers) Quality = 12,000 defects ppm Minimum batch size = 20,000 units for container Currency denomination = Yen Price basis = FAS = Free alongside ship Payment Terms - payment on Bill Of Lading (prior to departure of ship) - approx 4 weeks prior to delivery Tooling cost = $2,000,000 Australian dollars equivalent, however could incur lost production costs additional to this Relevant Alset data specific to Nadeshiko Tech include: Frequency of Shipment = monthly Estimated day of arrival = first working day of month Ordering cost per order = $750 due to needing all paperwork and individual orders prior to shipment Receiving cost per delivery = $1,100 for unloading container and inspection Sea transport (ship) = $88,000 per container (includes labour to pack and load ship with the dunnage provided) Land transport (truck) = $16,000 per container including load / unload and transport from Sydney to Wollongong Duties / customs / tariffs = $56,000 per container Insurance = $1.82 per unit Financing Cost = Total Cost of Units X 4 weeks / 52 weeks X 4% since Alset will pay for the items 4 weeks prior to receipt in store

Matildas: Relevant Matildas data from their tender response include: FIS quoted price = $149 per unit Ramp up time = 8 weeks Delivery lead time = 1 weeks (for initial order, then on a weekly rolling forecast but could delivery with a days notice where required). They explained that much of the tooling time and ramp up time was reduced allowing more testing during the first week Frequency of Shipment = daily Estimated day of arrival = Any weekday, 9am - 10am Plant capacity = 9 million units per annum Current operating capacity = 92% On-time delivery record = 99.95% on-time Quality = recent performance 9,500 defects ppm as a historical high Minimum batch size = 1 unit - due to being so close and having their own courier system, they could deliver any number per day Price basis = FIS = Free In-store - unloaded Tooling cost = $1,800,000 Payment terms = monthly - pay on the last day of the month for all deliveries that month Relevant Alset data specific to Matildas include: Ordering cost = $1,800 as a total for the two years as a blanket order and monthly invoicing Receiving cost per delivery = $200 per month for inspection (25 months of deliveries) Financing cost = not required as payment would be after receipt of the items during the month Crypto Technologies Relevant Crypto Technologies data from their tender response include: FOB quoted price = $105 AUD quoted at 4.39172cyn to $1AUD Ramp up time = 3 months Delivery lead time = 4 weeks (from time to order to day received) Current installed capacity for data projector production = 50% On-time delivery record = 99% on-time (for China customers) Quality = 1,000 defects ppm Minimum batch size = 10,000 units for mini container Currency denomination = cyn Price basis = FOB = Free On Board Tooling cost = $1.4 million - to be paid upfront Relevant Alset data specific to Crypto Technologies include: Frequency of Shipment = four weekly Estimated day of arrival = Every Fourth Friday Ordering cost per order = $750 due to needing all paperwork and individual orders prior to shipment Receiving cost per delivery = $550 for unloading container and inspection Sea transport (ship) = $38,500 per batch in mini container Land transport (truck) = $7,500 per batch in mini container including load / unload and transport from Sydney to Wollongong Duties / customs / tariffs = $29,500 per batch in mini container Insurance = $15,720 per batch in mini container Financing Cost = Total Cost of Units X 4 weeks / 52 weeks X 4% since Alset will pay for the items 4 weeks prior to receipt in store