Respond with a value added contribution with reference to the discussion below

TOPIC 2: Supply Chains

PROMPT: Choose a product that you used today. Look up where it was made and the different channel partners used to deliver that product to you. Are you surprised? 

A product I used today was my Xbox One X. It was manufactured in China, but was actually assembled in the United States (MadeFind, 2022, "Where are Xbox Made 2023," para. 3).  It was the only Xbox model that was not fully manufactured overseas, which I found surprising: it would seem to be more cost-effective to manufacture and assemble the console all within the same location. Completing the entire manufacturing process in China would seem the cheapest route, since outsourcing typically lowers labor cost (University of Maryland Global Campus, n.d., "Week 7: Channel Strategies for Delvering Value," para. 14). This may be why later models went back to assembling Xbox's all in China. They were all transported by cargo ships from China to the United States. This is what I had expected, due to the cost-effective nature of shipping by sea (University of Maryland Global Campus, n.d., "Week 7: Channel Strategies for Delivering Value," para. 76). Once the console was assembled, it was purchased by Gamestop, and shipped to one of the distribution centers (Gamestop, 2021, "Gamestop Expands Fulfillment Network with New Facility in York, Pennsylvania," para. 1). It makes sense that Gamestop utilizes large-scale distribution centers to manage the high volume inventory it deals with, but I had assumed that the inventory was handled directly at the store level. Managers at the store level manage inventory levels, and restocks are fulfilled by the distribution facilities as needed. This keeps a large inventory within the local area, and prevents the stores themselves from carrying excess stock that would clutter the retail space.

References

MadeFind. (2022, October 5). Where are Xbox Made 2023. https://madefind.com/where-are-xbox-made/#:~:text=Xbox%20One%20X%20was%20assembled%20in%20the%20United,Hungary.%20These%20are%20not%20manufactured%20in%20the%20USA.

 

 

 

2. Respond with a value added contribution with reference to the discussion below

 

TOPIC 2: Supply Chains

PROMPT: Choose a product that you used today. Look up where it was made and the different channel partners used to deliver that product to you. Are you surprised? 

Researching channel partners is important since it helps shoppers learn about where their products are from. An everyday product I use is Simply Orange Juice. The Simply brand is owned by Coca Cola. The oranges that are used to create this product are from three different countries: USA, Brazil, or Mexico (Simply, n.d.). The juice is manufactured in a facility in Apopka, Florida (Madefind, 2022). Based on the Coca Cola website, their orange juice suppliers include Cutrale, Peace River, and Ticofrut (The Coca Cola Company, n.d.). Currently Coca Cola has 225 bottling partners worldwide (The Coca Cola Company, n.d.). I did not know this information before doing my research. I was surprised that they are manufactured in Florida since not all of their oranges are from that state, but from Brazil or Mexico.

References:

Madefind. (2022, May 7). Where is Simply Orange Juice Made 2023? - (Revealed). Retrieved from Madefind: https://madefind.com/where-is-simply-orange-juice-made/

Simply. (n.d.). Frequently Asked Questions. Retrieved from Simply: https://www.drinksimplybeverages.com/faq#:~:text=Q%3A%20Where%20do%20the%20oranges,the%20best%2Dtasting%20product%20possible.

The Coca Cola Company. (n.d.). Ingredient Suppliers. Retrieved from The Coca Cola Company: https://www.coca-colacompany.com/sustainability/sustainable-agriculture/ingredient-suppliers

 

 

 

3. Respond with a value added contribution with reference to the discussion below

 

TOPIC 3: Pricing 

PROMPT: Describe the concept of price bundling. Why might a company initiate this pricing strategy? Give an example of a company that implements price bundling and how the combined pricing strategy affects customer behavior. (Think about the telecommunications industry, restaurants, software, etc.)  

Price bundling is a pricing strategy that offers discounts to customers. It occurs "when different offerings are sold together at a price that's typically lower than the total price a customer would pay by buying each offering separately," (UMGC, 2023). By using this strategy, customers can purchase a larger value for a lower price. This method affects shoppers' "perceived quality, price acceptability, perceived value and subsequent purchase intentions," (Yang & Lai, 2006). Price bundling is the sale of many separate products in a package at a lower price (Stremersch & Tellis, 2002). One example of a company that implements price bundling is Claire's. Claire's often uses the in-store sale "buy three get three free". This sale influences customers to purchase six products in order to get the three free ones. This is an effective strategy since shoppers will be able to have more products at a lower price. I have shopped from Claire's using this sale before and I find it beneficial since they have various products that shoppers can easily add to their purchase. This method is helpful since it also allows businesses to have a larger profit. Businesses must "engage in an advertising campaign to promote the bundled products while ensuring the success of the bundling strategy," (Yan et al., 2014). This will ensure that the businesses will still have high profits during these bundling sales.

References:

Stremersch, S., & Tellis, G. J. (2002). Strategic Bundling of Products and Prices: A New Synthesis for Marketing. Journal of Marketing, 55-72.

UMGC. (2023). The Pricing Framework and a Firm's Pricing Decisions. Retrieved from UMGC : https://leocontent.umgc.edu/content/umuc/tus/mrkt/mrkt310/2225/learning-resource-list/the-pricing-framework-and-a-firm-s-pricing-decisions.html?ou=702046

Yan, R., Myers, C., Wang, J., & Ghose, S. (2014). Bundling Products to Success: The Influence of Complementarity and Advertising. Journal of Retailing and Consumer Services, 48-53.