Burtons Snowboards

9 September 2016

Analyze Burton using the competitive forces and value chain models. When examining Burton Snowboards we can see how they considered factors of the competitive forces model in an attempt to expand globally. Traditional customers At its peak burtons controlled over 40 % of the US snowboarding market and remains the market leader despite growing competition. One way Burtons has stayed market leader is by being adaptable and dynamic which is a competitive necessity.

Burtons take feedback from its customers very seriously and will move quickly to meet their needs. An example of this is if a rider tests a jacket and recommends re positioning a zipper, Burton’s production line must be able to make this adjustment quickly and easily. New market entrants Burtons designs manufactures and markets snowboarding equipment, one way they have taken steps to ensure that they don’t lose customers to new market entrants is by strengthening customer and supplier intimacy. The available to promise process was taking hours to complete.

Burtons Snowboards Essay Example

Available to promise, in response to customer order enquiries, reports on available quantities of a requested product and delivery due dates. ) Burtons wanted to speed up this process so that its dealers and retail customers would have more precise information about the availability of items not in stock. Strengthening customer and supplier intimacy in this way forms strong ties with them, which reduces the likely hood of new market entrants taking customers from them. If Burtons are considering expansion they must also take into consideration that they themselves will be new market entrants and consider possible ways to successfully gain a good customer base in these new areas. They must consider if they can still access the same suppliers in those areas They must research and understand the customers in those areas. They must research any competition and ensure that they can provide competitive advantages to gain a good customer base. Substitute products and services Burtons used product differentiation to increase customer convenience.

Burton found that the process of reporting inventory was inefficient and that customers and suppliers could not easily determine up to date information on which items were at stock at each warehouse. SAP (enterprise resource planning ERP software. ) and Burton worked together to improve communication between warehouses and supply chain efficiency. A management dashboard that was developed with the help of SAP shows how smoothly a critical process is running at a certain point in time, information from which helps burtons key users discover inconsistencies, gaps or any other areas they should be monitoring more closely.

Customers To reduce costs and offer an improved more efficient experience for its customers SAP helped Burton Gain proficiency, buy identifying unnecessary complicated processes, backlogs and design gaps in the flow of its business processes and making improvements. Burtons take feedback from its customers very seriously and will move quickly to meet their needs. An example of this is if a rider tests a jacket and recommends re positioning a zipper, Burton’s production line must be able to make this adjustment quickly and easily. Suppliers

Using Electronic Data Interchange systems (EDI) Burtons were able to improve dataflow of inventory data between warehouses. This meant that suppliers and customers could easily determine up to date information on which items were in stock at each warehouse. One consideration that Burtons must have when looking to expand is if they can keep the same suppliers in new areas. Keeping the number of suppliers low is good for companies as it reduces work and usually means that the suppliers that are in place will offer a better price. The Value Chain Model

When examining the value chain model we can see how Burton Snowboards applied competitive strategies to add value to their products and services. Primary activities In the value chain model Primary activities are most directly related to the production and distribution of the firm’s services, which create value for the customer. Inbound logistics One problem that Burtons faced was the handling of overdue purchase orders in the procure to pay process, which consists of all the steps from purchasing goods from a supplier to paying the supplier.

SAP and Burton worked together to improve communication between warehouses and supply chain efficiency. A management dashboard developed with the help of SAP shows how smoothly a critical process is running at a certain point in time. Information from the dashboard helps Burtons users identify inconsistencies a problems that should be monitored more closely. Operations SAP analysts helped Burton identify the top 5 transactions that were most critical to its business operations. SAP and Burton worked together to improve communication between warehouses and supply chain efficiency.

Sales and marketing Burtons take feedback from its customers very seriously and will move quickly to meet their needs. An example of this is if a rider tests a jacket and recommends re positioning a zipper, Burton’s production line must be able to make this adjustment quickly and easily. With the help of SAP analysts, the time taken to complete the available to promise process was reduced from hours to 20 minutes to complete (Available to promise, in response to customers order enquiries, reports on available quantities of a requested product and delivery due dates.) this means improved customer service. Using Electronic Data Interchange systems (EDI) Burtons were able to improve dataflow of inventory data between warehouses. This meant that suppliers and customers could easily determine up to date information on which items were in stock at each warehouse. Services SAP analysts helped Burton identify the top 5 transactions that were most critical to its business operations and that needed optimization from a system standpoint. Burton had to identify unnecessary, complicated processes, backlogs and design gaps in the flow of its business processes.

Outbound logistics Thousands of items are moving from warehouse to warehouse and thousands of transactions occur each day at each warehouse. Burton found the process of reporting inventory was inefficient SAP and Burton worked together to improve communication between warehouses and supply chain efficiency. All process improvements were very valuable during what Burton calls its ‘reorder’ season. Burton’s dealers place orders to stock their stores well before winter set in. As consumers start buying the merchandise, dealers re order with burtons to replenish their stock or to buy new products.

They can now see more timely product availability data and receive orders more rapidly. 2) Why are the business processes described in this case study such an important source of competitive advantage for Burton? Burton’s improvements in its business processes described in the case study were vital in maintaining competitive advantage by strengthening customer and supplier relationships reducing costs and becoming leaner. Burtons is looking at expanding into new areas of the world therefore it is vital that its business processes are as efficient as possible so that Burtons are ready to handle new challenges in expanding their business.

By identifying the top 5 transactions that were critical to its business operations and that needed optimisation from a system standpoint, Burton made great efficiency gains. The available to promise process was sped up so that Burton’s customers and suppliers would have more precise information about the availability of items not in stock. SAP and Burton worked together to improve communication between warehouses and supply chain efficiency so that suppliers and customers could easily determine up-to-date information on which items were in stock at which warehouse.

Explain exactly how these process improvements enhance burtons operational performance and decision making? By identifying the top 5 transactions that were critical to its business operations and that needed optimisation from a system standpoint, Burton made great efficiency gains. Becoming lean meant that burtons was making efficiency gains which not only increases profit but also means that expanding the business with good systems in place will be a lot easier than with previous systems.

SAP and Burton worked together to improve communication between warehouses and supply chain efficiency so that suppliers and customers could easily determine up-to-date information on which items were in stock at which warehouse. A good Customer and supplier relationship is vital and in improving this relationship means that Burton is more likely to keep its current suppliers and customers and is also more likely to ensure that in expanding they attract a good customer base in its ne locations. A management dashboard developed with the help of SAP shows how smoothly a critical process is running at a certain point in time.

Information from the dashboard helps Burtons users identify inconsistencies a problems that should be monitored more closely. All process improvements were very valuable during what Burton calls its ‘reorder’ season. Burton’s dealers place orders to stock their stores well before winter set in. As consumers start buying the merchandise, dealers re order with burtons to replenish their stock or to buy new products. They can now see more timely product availability data and receive orders more rapidly.

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