Question

In: Operations Management

During high growth period what capacity strategy for a growing business would be most appropriate given...

During high growth period what capacity strategy for a growing business would be most appropriate given an intense market competition?

Solutions

Expert Solution

In case of market growth period or high demand scenario, Lead Capacity strategy can be adopted to meet the growing demands and thus to provide the product and service to customer with minimal lead time.

Lead strategy helps an organization to be the first in the market and thus to attract more customers which helps to deal with the competition in the market.

Lead strategy ensures that the resources are available and have capacity to produce and fulfill the demands of the customer with minimal lead time and in competitive price

Sometimes it happens that in lead capacity strategy an organization takes the lead to launch a product or service with a competitive price and having full availability to fulfill the customer demand and the competitor still planning to increase their capacity reach that competition level. Thus and speedy decisions for increasing the capacity and being first in the market proves to be a success or failure for the organization


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