Question

Please (a) in any industry of your own selection, please identify a dilemma involving the use of overseas suppliers in a US company’s supply chain. The dilemma has to involve a difficult decision where it is hard to please both investors and customers; (b) discuss your alternatives to solve the dilemma; (c) recommend the best alternative; (d) explain why the recommendation provides a comprise that manages to make, to a reasonable degree even though not perfectly, both investors and customers happy.

Answer 1

Answer a :

Dilemma involving the use of overseas suppliers in a US company’s supply chain :

Marketing tools are strategies or techniques that a business involves developing or retain its customer base. There are many tools for marketing. Some of those are sponsored advertisements, direct emails, search engine optimizations, customer loyalty programs etc.

When an economy collapses, like the 2008 recession and the latest issues related to corona virus, a lot of people become jobless and probably homeless. During such conditions, people's spending capacity decreases and priorities change which in turn affects businesses badly. Under such circumstances, businesses will have to optimize their marketing strategies in order to retain their customer pool as well as to build it.

A good way to achieve this is to introduce enhanced customer loyalty programs. The customers should feel that they are valued during tough times by their beloved brand or product seller. The necessities for customers during tough times will be food, shelter etc. You may introduce giving away some items for free. And there can be reduction in prices of the services you offer or products you sell. In the case of textile industry, you can introduce discounted sales and give the customers option to gain money by introducing new customers who can spend. There are other options like giving out the textile products on an EMI basis as well. The reduction in prices or giving away products on EMI basis is risky as situations will not be good with homeless people during tough times and you cannot fully expect them to pay back. Investors may not be in tune with the idea and customers also will be confused as they may be able to pay it on EMI basis, but they cannot be sure given changing times and breach of agreements may lead to legal issues.

We can address the issues by convincing the investors that it will be good for the company in the long run. No bad situation is forever, and situations will improve. If trust and hope can be instilled in the minds of customers, they will remain loyal to the brand always. You can sell of the products without any margin, if required. Once situation improve, you can recover the losses. Customers also can be tackled by assuring them of the company's stance towards its customers and their issues will be taken care of.

Answer b :

Alternatives to solve the dilemma

The best alternative is to make pact with some NGOs and raise textiles and stuff for the customers. You may be able to deliver them also along with your products. It will be possible to take help from your wealthy customers as in the example with the doll stated in the question. You can introduce options like once a wealthy customer makes a purchase, part of the price will go to provide textiles for the poor.

Answer c and Answer d :

Recommend the best alternative :

These recommendations are not fully acceptable for investors or customers. Customers may not get things according to their wish and investors may be unsure due to the risk potential. But during bad times, it will be good to proceed with options like these as investors will not lose their built-up customer pool and customers will also be happy that they are getting things for their 'needs'.

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