Case Study Supply Chain Management - 1925 Words

In today’s society â€Å"technology†, especially the internet has taken an important role in the Supply Chain Management sector of business, and majority of the companies involved in Supply Chain Management have adopted new and improve technologies to gain a competitive edge, and become leaders within their industry. Supply Chain Management has become one of the leading industries in business. Companies recognized that in order to get their products to retailers and consumers on a timely manner they have to implement successful Supply Chain Management strategies. Companies have to identify the opportunities and challenges their organization might face in order to prepare for the future. Moreover, companies have to realize that selecting the†¦show more content†¦The main reason functional products have a longer life cycle is because they are mostly everyday useable items such as household goods, basic clothing, basic foods from grocery shopping, every day or e very week gas for consumers cars, medication or over the counter medicine, etc. Furthermore, functional products have low product variety because they do not need rapid introduction to new products, and for that reason they have predictable demand. Functional products have lower obsolescence, low margins, and low cost because of the variances in its product life cycle and the complete nature of its products. The fact that functional products have a stable demand makes it easier for companies to tailor the precise strategy for their products, and they know consumers will be satisfied. On the other hand, innovative products are much different, and they have a shorter life cycle with high innovation and fashion materials. Innovative products are known to have unpredictable demand because of the constant change of consumer’s interest. There are so many trends in innovative products especially with smart phones. The two main companies that are always creating new and improve innovative products in technology are Apple and Samsung. Apple and Samsung are always competing with the IPhone and the Galaxy. These two companies know that consumers are always waiting for the â€Å"new thing†, so they produce new