VF Brands: Global Supply Chain Strategy Sample Paper

VF Brands: Global Supply Chain Strategy:

Kerin, R., & Peterson, R. (2013). Strategic marketing problems: Cases and comments (13th ed.). Upper Saddle River, NJ: Prentice Hall.

Read the case study, “VF Brands: Global Supply Chain Strategy,” on page 437 of your textbook. Once you have read and reviewed the case scenario, respond to the following questions with thorough explanations and well-supported rationale:

1. Contrast the advantages of utilizing company-owned plants to using a large network of suppliers.

2. The development of strategic supplier relationships was discussed in the case. Why is this important to both the company as well as to the suppliers?

3. Analyze the strategic growth plan of VF Brands with respect to their acquisitions. Their mission in these acquisitions was to preserve the organizational culture and unique brand identities of these acquisitions. Why was VF Brands concerned about this?

4. Analyze whether VF Brands should expand the “Third Way” sourcing strategy, expand internal manufacturing, or do more traditional sourcing. Include your rationale.

ANSWER:

VF Brands case study:

VF utilizes both the company owned plants and external suppliers. The idea behind not relying much on the production strategy is due to the need for the company to acquire more brands. However, the company has strong internal capabilities for conducting its manufacturing. The advantages of shifting the production of the company to different location had benefits through responding to the changes in exchange rates. It helps in strategic optimization which emphasizes the need for the company to continue with the production. The company also has the chance to manage its activities better since they can choose the suppliers wisely. Furthermore, the strategy helps the company to incur lowers costs because they can choose providers with lower expenses in the field(Kerin & Peterson, 2013). The use of advanced technology also is possible since the enterprise gains access to the improved technologies. The resources in the company are distributed to the primary operations thus helping in offering flexibility to the business.

However, the strategy is without some of the limitation such as the loss of expertise. The company may lose the skills which are essential for the future development and dealing with competitors. The information gained from the suppliers also may help in coming up with new product features (Kerin & Peterson, 2013). Moreover, the approach leads to high dependency on the suppliers which may affect the firm in case of price rise. The company may end up not enjoying their initial levels of performance where they end up engaging in their manufacturing. The firm also ends up losing control over the costs since they don’t have the chance of using improved facilities in production which may end up being cheaper than outsourcing.

The company and the suppliers should maintain a strategic relationship as discussed in the case since it helps in the timely delivery of materials of better quality. The business gets the materials needed promptly thus one produces in time and maintains the quality that suits their customers. Moreover, the production becomes smooth sailing since one assured of getting top quality materials thus eliminating the risk of rejected final products (Kang et al, 2015). The business meets customer’s satisfaction due to timely delivery of goods and services devoid of any defects. The customers, therefore, trust the company since they feel get value for their money. The customers leave a positive impression about the firm which is likely to result in strengthening the brand of the enterprise. The company also gets excellent support thus not getting their goods late or in some cases having delayed shipment. The company can fix the problem faster and also offer compensation for any inconveniences caused during the process. Finally, good relationship helps the company to save more financial resources for the business through eliminating some of the unexpected cost that frequently arises such as getting the right materials and avoiding mistakes during production.

The success of VF Corporation built upon the strategic acquisition which entails seizing of opportunities when they arise. The culture of the corporation is well combined and driven to guide all the members through constant innovations and to create brand loyalty among the consumers. The company has also incorporated the values of integrity, respect, consideration, and honesty thus creating a healthy environment for all the members. The acquisition strategy adopted by the corporation mainly had the idea of propelling the manufacturing of its products thus leading to the expansion of the company.

Promoting the brand during this period would assist in transforming the global lifestyle appeal for the company which would contribute to greater development. The name concerned itself with preserving the culture and the unique identities of the brand since it formed the values on which most of the customers felt attached to the business, and it would facilitate the future development of another brand.

VF Corporation should adopt measures that would help in building a good reputation which would focus on developing strong internal performances which involve using of more skilled people. Through adopting the strategy, it would make the corporation have a competitive advantage since they already have the technical know-how required. The use of suppliers also gives the business reliable and important network which is important during acquisitions. The difficulty the corporation faces while using this approach mainly include lack of trust and coordination among the company and the suppliers. The effects of this would lead to reduced inventories levels for the business to operate efficiently. The rapid changes in the apparel industry would require the company to adopt Third Way approach which would give the business a competitive edge (Kerin & Peterson, 2013). Furthermore, through the expansion of the company sales, it would give the company a competitive advantage and an opportunity to grow. The development of new product line would help the corporation in reaching out to the different market segment which would result in customer’s satisfaction. However, the economic situation would affect the apparel industry thus high dependency of the suppliers would prove fatal especially during a crisis. Finally, competition from other brands is more likely to affect the sector and the increased bargaining power which would lead to lowering the prices.

References:

Kerin, R., & Peterson, R. (2013). Strategic marketing problems: Cases and comments (13th ed.). Upper Saddle River, NJ: Prentice Hall.

Kang, H., Yong, H., & Hwang, H. (2015). Clustering Corporate Brands Based on Social Metrics A Case Study of the Cosmetic Brands. doi:10.14257/astl.2015.120.11