This reduction can happen by investing in workers training as it appears from the comparison between China and Hong Kong plants that the main difference between the two is in the skills level of the workers. Organization challenges along with competition from competitor companies were major challenges the company had faced. As mentioned earlier in the paper Hong Kong workers were trained in many different facets of production whereas China's worker were trained in one specific area of production. Along with this, the company should create promotion strategy to attract the retailers and improve the production system that will help to reduce the lead time for efficient production. Coefficient of variation measures variability relative to average demand. The large batch sizes required by manufacturers for Obermeyer further highly restricts Obermeyer ability to respond to uncertain demand.
The biggest challenge Sport Obermeyer is facing is uncertainty. After having a clear idea of what is defined in the case, we deliver it to the reader. A firewall is obstructing entry to Prezi content. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Standard deviation is defined as a measure of how much demand tends to vary around the average, and coefficient of variation is the ratio of standard deviation to average demand.
This could be taken one step further to accommodate a standard color. It is recommended to address long lead times and a high inventory count with uncertain demand, that Sport Obermeyer should begin operational changes through the utilization of risk based production sequencing. The current challenges that are being faced by Sport Obermeyer are firstly, as a result of. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources. More importantly, I have also decided that Sport Obermeyer, as a company, needs to focus on two distinct issues going forward.
Pest analysis is very important and informative. It was, founded by Klaus Obermeyer, a German ski instructor. Before Wally made the decisions, he needed to know how to make forecast as close as possible to the market demand according to the previous record and how to balance orders between operations in Hong Kong and China to make sure the flexible production line and the lowest cost. Coupling this with their inflexibility to meet unexpected or unplanned demand puts a big challenge to Obermeyer. By starting with the cheaper products, Obermeyer is minimizing their costs and risks of the more expensive style being not accepted by the market. Therefore, it is recommended to negotiate different terms with the suppliers and manage long-term relationships with them to minimize the lead-time.
The Fashion Industry is extremely competitive, as well as trendy. This results in high holding costs. It would be ideal for Obermeyer to forecast future demand with the help of a forecasting committee. Please place the order on the website to order your own originally done case solution. .
The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Quick and fast changes in an environmental market place such as social growth globalization and the growth of social networks , economic instability crises , industrial progress, fast growing competitive world and firm marketing regulatory mainly have an effect on the work of most of marketing companies or marketing and brand image divisions of the companies. Ultimate success of the line is highly dependent on how well the company was able to predict future market response. They are more highly skilled and typically trained in a broader range of tasks. Words: 1035 - Pages: 5. In order to put into practice a winning marketing plan or a boost in sales and customer… 1441 Words 6 Pages The Sport Obermeyer case is mainly about the production and manufacturing process of a skiwear product. My experience is that in real-life, in business, these steps are not always practical and possible.
This measure should be quantifiable. There is no indication of how consumers reacted to 1992-93 line of their skiwear. The price of producing a variety of styles in Hong Kong would be lesser then producing in China. Secondly it is recommended that the company aim to improve qualitative demand forecasts made internally by the buying committee in November just before Speculative Production. Is a high end fashion design and merchandizing company based in Aspen Colorado. Second production order with Obersport. This causes below stocking of Individuals designs which have been in high demand and the organization is unable to fulfill the orders of the shops.
The company has a global supply network; however, most of its products are outsourced through the operations in Hong Kong and China which is a joint venture between Obermeyer and its Hong Kong partner. The seduced brand production is the safest choice. Thus in both cases, the uncertain demand is costing Obermeyer a lot. Sport Obermeyer is a high-end fashion skiwear design and manufacturing company located in Aspen, Colorado. Obermeyer must comply sample data from the buying committee's forecast and correlate it with Obermeyer's top selling products. The company holds 45% share of children's skiwear and 11% of adult Skiwear market.