Forums › ACCA Forums › ACCA SBL Strategic Business Leader Forums › tows matrix&supply chain
- This topic has 2 replies, 2 voices, and was last updated 11 years ago by adnan00.
- AuthorPosts
- May 14, 2013 at 2:57 pm #125450
why is option ST in the TOWS matrix seen as a medium term strategy?
how or why does a pull model of supply chain centralise demand information?May 14, 2013 at 10:03 pm #125494Most successful companies will want to be in a situation where they can use strengths to take advantage of opportunities as this generally gives maximum competitive advantage.
An ST position is considered the second best strategy. Consider an example:A clothing manufacturer with an established reputation for quality products (S) is facing competition from cheap foreign competitors (T). The company can differentiate its brand to try and reduce the threat. But if the foreign clothes are also good quality then sooner or later the company will have to change to a low-price strategy.
Because strengths are internal and threats are external, strengths may not always address the ever changing threats in dynamic markets.Pull model and demand centralization:
In a pull model chain, production and distribution are customer driven. To ensure that all sections of the chain are working in tandem an integrated approach is taken that passes real time demand information throughout the chain. This area can get very technical and I doubt if any such information will be required in a question.If you’re interested:
DELL’s build to order supply chain is a good example to study.
An article by Ken Garrett “The strategic use of IT” (SA OCTOBER 2010) may be useful.May 19, 2013 at 6:18 am #126011to rajib
thanks a zillion.i had a haphazerd idea about it but your input totally cleared it up - AuthorPosts
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