The Supply chain for Joe and the Juice
The Supply chain of each company varies depending on the home country and the mode of entry into the host country. Joe & the Juice uses the pull-driven supply chain where the company does not produce until the customer orders making it possible for the customer to be part of the decision making regarding the product, however there will be slow delivery time. However, to answer the question;
What are the implications of the chosen strategy for Joe & the Juice supply chain and value chain? Based on the above analysis, Joe & the Juice have an option to enter the Kenyan market through the intermediate mode of entering, franchising. This means that Joe & the Juice will still have control over while the Franchisee in Kenya will take care of production, sales and services. The production, such as the assembly of the sandwiches and making the juice to serve the customer as soon as ordering is made are transferred to the franchisee in Kenya, whereas the research and Development and marketing functions remain under the sole control of Joe & the Juice. Joe & the Juice will therefore adapt a general marketing plan which will be adapted to Kenya conditions and cultures. This is very challenge to the company as there is a very big sociocultural distance between Denmark and Kenya. However, Joe & the Juice have been doing franchising according to an interview with the CEO but the CEO of Joe & the Juice will preferred the indirect franchising mode appointing a sub franchisor which will establish and service its own subsystem of franchisees within its territory. We have considered Joe & the Juice to be both a production and a service company. Joe & the Juice as a production company transform the raw materials (e.g. fruits) into the finish product (juice) which is then served to the customer thereby creating value for the company. Porter’s value chain is divided into primary activities which are the...
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