Inventory Management: Strategies to Sustain Business in a Competitive World - Essay Sample

Introduction

Inventory management is one of the critical industry that involves management strategies and application programs to sustain the business within the competitive world. Generally, with the development of the technology and invention of new techniques towards solving business problems. Regarding, the data management and development of the strategies towards counter dealing with competitors (Cao et al., 2002). Primarily, existing businesses they possess information that is vital to their development and advancement. For instance, for manufacturing industries such as Coca Cola Company have ideal technologies and data inventory that they maintain secretive about hindering access and counter competitors of the soft drink production. The business culture, therefore, becomes a vital element in influencing the performance of the company in regulating competition. Based on coca-cola Company, employees are always allocated in different points of stages of the operation hence specialization thus reducing ineffectiveness. For that reason, many counter competitors in beverages have not been able to compete with it for as well as secure data-keeping. Thus by using porter's five force model, the company has kept away rivalries and also maintained a monopoly in the market ("Porter's Five Forces: - Understanding Competitive Forces to Maximize Profitability. Mindtools.com", 2020).

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Industry Analysis

Companies dealing with inventory management often are faced with a crisis such as political instability, lengthy legal procedures, supply chain, and also the existing competitors. The critical area of the advancement is normally technology, legislation protocols and ideal methodologies in the business operations. Most of the companies or rather business seek to improve ideas that have already been in place. Therefore, for the industry to maintain its profit margin, it requires to enhance the techniques and data inventory management to avoid stiff competition. Also, it should establish its operations based on the comparative advantage and the culture of the consumers. Inventory management hence should capitalize itself more on the technological advancement to win more customers.

Competitors

Most competitors in the inventory Management industry often take advantage of the stock output, poor inventory visibility and excessive inventory. Following the issues, the inventory management faces lose due to improper supply of the product. For the companies that are unable to supply adequate products causes a decline in sales. To facilitate the development of the supply techniques, therefore there is a demand to invent new technologies. Lack of ability to fix the problems invites the competitors in development strategy to win more customers as well as making significant profits.

Stakeholders

Regarding the shareholders of a different institution, the Human resource management is the critical regulator of the workforce. Occasionally different companies have manifested their weaknesses through operations of its employees and stakeholders. In order to mitigate project in any company, rules and regulation are essential in ensuring that each and every participant a limit and task to accomplish (Liu et al., 2012). Finally, to manipulate efficiency, cross-cultural training is essential, and also the implementation of new technologies would increase output for higher profit margins.

References

Cao, Y., Chau, K. W., Anson, M., & Zhang, J. (2002, September). An intelligent decision support system in construction management by data warehousing technique. In International Conference on Engineering and Employment of Cooperative Information Systems (pp. 360-369). Springer, Berlin, Heidelberg. https://link.springer.com/chapter/10.1007/3-540-45785-2_28

Liu, Z. K., Bai, Y. W., & Li, Q. (2012). Application Research of Data Warehouse Technology in Integrated Drilling Engineering Design. In Advanced Materials Research (Vol. 421, pp. 431-435). Trans Tech Publications Ltd. https://www.scientific.net/AMR.421.431

Porter's Five Forces: - Understanding Competitive Forces to Maximize Profitability. Mindtools.com. (2020). https://www.mindtools.com/pages/article/newTMC_08.htm.