As a small country, without the global supply chain, NZ would not be creating or selling the large variety of goods that are available to us on a daily basis. Globalisation opens the door to an extended market and range of different products and services that suit a variety of different demands.
Businesses seek to gain a competitive advantage over others in the market, by constantly following and keeping up with ever changing consumer demands (Cattaneo et al., 2016). In order to achieve this, companies need the best possible supply chain which includes multiple international countries, as without efficient links to global markets, a country or firm can not remain competitive (Cattaneo et al., 2016). Supply chains benefit from the competitive market because there are so many opportunities and strategies that can be adopted. Michael Porter (1986) stated 2 key strategies that can be adopted. Firstly, focusing on low costs or second, a unique point of differentiation. Costs, which include production, transport, labour …show more content…
Africa, the poor are getting poorer and poverty is increasing (Costello, 2001). These countries don’t have the resources, information and capabilities to join the global network, therefore are falling further and further behind as the rest of the world advances (Weinstein, 2005).
Consumer demand is constantly changing. One week everybody wants the new iPhone 7 that’s just been released, and next week everybody’s dropped the new iPhone for the new Samsung with better features. Because of social trends, consumer demand is never the same 2 weeks in a row, therefore flexibility is a key aspect to a successful supply chain. Because of globalisation, flexibility has become much easier. If one supplier is unwilling to follow commands or keep up with demand, there will be another supplier who is looking for
Businesses seek to gain a competitive advantage over others in the market, by constantly following and keeping up with ever changing consumer demands (Cattaneo et al., 2016). In order to achieve this, companies need the best possible supply chain which includes multiple international countries, as without efficient links to global markets, a country or firm can not remain competitive (Cattaneo et al., 2016). Supply chains benefit from the competitive market because there are so many opportunities and strategies that can be adopted. Michael Porter (1986) stated 2 key strategies that can be adopted. Firstly, focusing on low costs or second, a unique point of differentiation. Costs, which include production, transport, labour …show more content…
Africa, the poor are getting poorer and poverty is increasing (Costello, 2001). These countries don’t have the resources, information and capabilities to join the global network, therefore are falling further and further behind as the rest of the world advances (Weinstein, 2005).
Consumer demand is constantly changing. One week everybody wants the new iPhone 7 that’s just been released, and next week everybody’s dropped the new iPhone for the new Samsung with better features. Because of social trends, consumer demand is never the same 2 weeks in a row, therefore flexibility is a key aspect to a successful supply chain. Because of globalisation, flexibility has become much easier. If one supplier is unwilling to follow commands or keep up with demand, there will be another supplier who is looking for