Business Model What Does Competing Term Paper

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Taken together, all these factors influenced by the stage a product is in relative to the industry lifecycle; influence the business model's profitability. Overall this factor influencing a business modes' profitability is the stage in the product lifecycle a product is relative to the industry.

Another significant series of factors are the extent of the supply chain integration, supply chain management and supply chain planning the company has engaged in. For customer orders to be filled on time and delivered accurately, the synchronization of supply chain systems and suppliers is critical. This has a direct impact on a business models' profitability as well.

Third, there is also the aspect of how the distribution channels, both direct and indirect, are managed from an incentive, costing and margin standpoint. It is important to manage indirect channels to alleviate pressure on pricing and margins by only signing up with channel partners who can effectively sell products as solutions rather than as commodities.
Selling products as commodities creates price competition and drains gross margin from a business models' profitability as well. With direct selling the need to protect margin and price is also critical, teaching sales organizations to compete on value and solutions over just on price.

What is the difference between customization and mass customization? What kinds of strategy are appropriate for each?

A useful perspective to take on the differences between customization and mass customization is to consider the sourcing, supply chain, manufacturing processes on the one hand, and the selling processes on the other to fulfil a customized vs. mass customized product. For customized products, the margins and profits are typically.....

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