The success story of a small and lean organization such as Super Bakery, Inc. to create a $10 million donut bakery business lies in the ability of the former football star turned entrepreneur, Mr. Franco Harris to develop and identify a flexible business model that has enabled Super Bakery to mitigate business risk, while speeding up time-to-market and immediately gaining access to various competencies that are not readily available internally to the company.
Super Bakery is operating in a competitive baked goods industry. Traditionally, the established donut bakery companies have total control over its supply chain to reach the targeted consumers. ...
As for Super Bakery, the company had decided to compete differently. Being a small company with limited resources and experiences in the baked donut business, the company adopted a very different go-to-market approach to deliver its donuts to the consumers. Super Bakery has successfully created a network of multiple outsourcing supply chain partners in order to provide timely response to the changes in the market place. Thus, the question is why Super Bakery created a network of multiple supply chain outsourcing partners to deliver its donuts to its targeted consumers.
The followings are the rationale why supply chain outsourcing is more appropriate for small companies like Super Bakery. ... The industry is characterized by low barrier to entry for new players, high failure rates for new and small start-up companies, generic product offerings among competitors and difficulty in differentiating one product offering from the others. Pure competition in the market place has caused margins to decline and small companies like Super Bakery must minimize its operating cost in order to be more competitive and improving shrinking profit margins.
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