Challenges of globalization:-
Globailzation involves managing these challenges in many overseas markets simultaneously. When operating globally the business environment is typically more complex and demanding dur to range of factors:- 1)
Competition:- Dakz was an relatively new in the market and their brand may not be accepted in globalization because Global brands are predominate with the several smaller innovative and specialised manufacturers with Niche brands. 2)
Distribution:- Supply chain becomes more critical when Dakz enter into globalization. Their manufactures happen in family owned sports swear clothing manufacture in china and Ken tucky has expressed concerns to the executive management team that the existing manufacturer is unlikely to have the capacity to deliver the additional quantities required to meet anticipated demand and within reasonable timeframes. This is because the owner of the Chinese factory will not acquire the new machinery required to produce additional quantities of products in timely manner and Lack of knowledge on international supply chain by the management 3)
Macro – Economic:- The economy of every country and region differs in its fundamental economic characteristics, un like Australia where there is relatively high level of per capita participation in regular exercise and sporting activity and CAGR of athletic apparel grew at 8.3% comparing with other country CAGR 0.8%. 4)
Benefits of globalization:-
2) Timing benefit
3) Learning benefit
4) Arbitrage benefit
Value chain of sports:-
The main supply chain for Sheek seems quite short. It begins with producers of cloth and other materials for fashion clothes. Materials are purchased by the businesses that manufacture the clothing for Sheek.
The manufacturers are mainly small independent firms in Russia and Malaysia, but the company has its own small manufacturing subsidiary. The manufactured goods are transported to the company’s distribution centre in Russia.
Sheek buys the manufactured clothes that it has designed, and distributes them to retailers directly from its Russian distribution centre, or through the distribution centre in France. Retailers may be department stores or its own stores. There are also some e-sales direct to customers. There may be some weaknesses in the supply chain.
• Most sales are in Europe but most manufacturing is in Russia (Eastern Europe) or Malaysia. Although these areas may be cheaper for manufacturing, the costs of transporting the clothes to the distribution centre in Russia and then to the distribution centre in France may be quite high.
• There is no information about the efficiency of Sheek’s delivery system, but operating with two distribution centres may be inefficient and slow down the transfer of manufactured goods to shops. Its competitor Zara has a manufacturing centre in Europe and a modern distribution system. This may give Zara a strategic advantage because transport costs should be lower and distribution times quicker. Zara operates a just in time system for ordering goods from manufacturers, and this seems to be more successful than Sheek’s attempts to do the same thing.
• The supply chain operates slowly between Sheek and its manufacturers, and this may put the company at a disadvantage compared with Zara and H&M.
Value chain of Sports apparel r&d SUPPLY CHAIN
Initial research :- Dakz invest a considerable amount of its financial resources in research and development of its products. Research plays a considerable time and money for value creation. 2)
Target identified and validated :- A new product line that dazk is contemplating is in the area of compression sleeves and guards. These are compression wear items that protect selected parts of the body such as arm sleeves and calf sleeves. 3)
Please join StudyMode to read the full document