Go Downstream : The New Profit Imperative in Manufacturing  

Oleh:

Wise, Richard ; Baumgartner, Peter

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Harvard Business Review bisa di lihat di link (http://web.b.ebscohost.com/ehost/command/detail?sid=f227f0b4-7315-44a4-a7f7-a7cd8cbad80b%40sessionmgr114&vid=12&hid=105&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&jid=HBR) vol. 77 no. 5 (1999), page 133-143.
Topik: MANUFACTURING; business models; customer relations; distribution channels; distribution planning; manufacturing; manufacturing strategy; strategy formulation; vertical integration

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Perpustakaan Pusat (Semanggi) Nomor Panggil: HH10.14 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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The 1990s have been a great time to be in business - unless, that is, you happen to be a manufacturer. As business value has flowed steadily downstream, from producing goods to servicing them, most manufacturers have struggled, unable to boost their profits or stock prices. A few manufacturers, though, are thriving. They've gone beyond the factory gates and have begun competing in downstream markets - where the money is. The authors describe four business models for successful downstream moves. The embedded - services model involves using new technologies to build services into products ; Honeywell, for instance, offers a product that ties airplane subsystems together through the use of microprocessors. The comprehensive - services model involves providing a set of services that spans the entire product life cycle, as GE is doing for railroads. The integrated - solutions model is a matter of combining products and services into a single offering, as Nokia has done by helping its cellular - carrier customers deploy their networks. The fourth model, distribution control, involves taking control of lucrative distribution activities ; Coke's control of 70% of its U. S. bottling and distribution is a prime example. Moving downstream requires manufacturers to shift their strategic focus from achieving operational excellence to gaining customer allegiance. It also calls for new skills and performance measures. But the rewards can be substantial. Downstream markets often generate 10 to 30 times more revenues than the underlying product sales - and they tend to have higher margins and require fewer assets as well.

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