Otis Toy Trains Explores the Supply Chain
The value proposition of Otis Toy Trains of Minneapolis is to offer well designed, detailed, evocative and luxurious toy trains and their accessories to middle-aged and senior adults. The traits for its critical customers are mainly two aspects. First, the critical customers’ age generally range from 35 to 55 (born from the 1960s to the 1980s). Second, the critical customers should have fairly high income to afford buying and collecting luxurious toy trains. The toy trains have many order winners, such as its high brand recognition among critical customers, its attractive and evocative train series due to those experienced designers and its wide selection of related accessories. However, Otis Toy Trains still has some order losers. For example, the Otis Toy Trains’ critical customers are so narrow (only adult born from the 1960s to the 1980s), and the toy trains do not have much attractiveness among other groups; therefore, it is hard to expand market and easy to lose market. In addition, the Otis Toy Trains does not have a method to efficiently produce and deliver its toy trains to customers, which means the cost of production and delivery is relatively high.
As a consultant, I will highly recommend the Otis Toy Trains to accept the proposal because it can cut about half of the manufacturing cost, and the outsourcing will also emancipate the Otis Toy Trains from maintaining its facilities (factories). However, outsourcing will make the quality of toy trains out of control. For example, the Mattel recalled back over nine million toys because its outsourcing factories in China used paint which was hazardous for health. Therefore, my recommendation is to send managers to Chinese factories and keep track of the manufacturing to make sure the quality is under the Otis Toy Trains’ control.
Trail Frames Chassis
Trail Frames Chassis’ value proposition is to offer customized, timely fashionable and technologically...
Cited: “Mattel Issues New Massive China Toy Recall.” Msnbc.com. N.p., n.d. Web. 07, May 2014.
"BMW: Outsourcing Assembly and the 'Modular Industrial ' Strategy:." Abubakrag. N.p., n.d. Web. 07, May2014.
Please join StudyMode to read the full document