The giant paint company 'Wattyl' are losing shelf space and market share to the strong foreign rival, and taken over by giant foreign industry. The company must be improving their strategies, service and increasing market share also increasing operation system performance and improvement efficient forecasting system, they be able to regain the market share and shelf space in bunnings stores, also they can avoid taken over by rival.
Walttyl, the giant Australia paint company are losing their market share to a strong foreign rival. Obviously, the walttyl need to create a new strong supply chain strategy to encounter a foreign competitive, and be effort maintain their leader position in Australian paint market. The company should develop operation system and the marketing knowledge more than the past decades such as customers need and marketing need, the company be able to change their market price to persuade a new customers also developing a new supplier and new market channel and find the right ways to bring the company to the company's goal.
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Walltyl need to develop the new strategy to encounter a rival, they be able to use 5 forces model to develop company's strategy. The 5 forces model has significant impact to marketing and company. According to the author (Michael E. Porter) no doubt rivalry can make obstacle to the company, they can create a new strategy to take a company's customers, this is a major problem for the company, the company should be understanding the number of competitor in the market and rate of company growing also environment in business. While Profitable market can draw the new entrants they come with the new strategy and new product, the customers have more choice it can be cause of sunk a product price, new competitive is a major issue of the business, the company be able to lose market share to the new entrant.
Obviously The bargaining power of customers are many impact to the price, the ability of customers to bargain with the companies are affected with the product price, when the market has many product and price competitive the customers have more choice it is a matter of business about Profitable market and market share. In addition suppliers of raw materials are a necessity for the company if the companies have a power to bargaining to suppliers or business can be a power over supplier, the company can buy a source low price, while the company is depended on one supplier, they have a power over the firm they can negotiate high prices for raw materials.
The threat of substitutes are describe another products are similar the company product, the customers have alternatives in respond product if the replacement products are similar and lower price, such as plastic or timber. Substitute Products or Services can threat a market share and Profitable market.
According to the author (Andrew Cox) supply chain thinking is a way to increased operational effectiveness and efficiency, the theory explained the way to support the best ways of product and service to the customers, the company should to find a ways to manage supply chain, and manage the resource, also the company should make the power more than suppliers and how to control supplier, the main of theory is the company should know the own resources and how to use their resources to deliver products or service to customer and explained the exchange relationship between supply chain resources and the flow of income in the value chain there also explain about the ownership and how to control the supply chain. The theory also focus on a horizontal competitive and competitive of raw materials, because the competitive of resources have many impact to the operate supply chain.
Many company got issue about delivery speed on supply chain, According to the author (Riikka Kaipia) the lack of planning of supply chain is a seriously problem in business, it can cause of stock out, and can be cause of delay for delivery to customer. As the result the company should to develop supply chain plan also develop forecasting system, because if the companies have a efficient forecasting system they can reduce the problem of stock out, while information between the customers and supplier the information from them are significant for forecasting process be able to reduce stock out problem, and support the company to produce product matching future demand.
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The company lost the market share to the rival and there are losing some shelf space to Nippon paints, according to 5 forces strategy Nippon paint is a intensity rivalry, for Walttyl this is a major problem, Nippon paint spending money for advertising and marketing more than Walttyl they have better operating supply chain to deliver to customer and better forecasting process. While walttyl planning to shut a plant and move the product line to another plant, it can be cause of delay in product line process, the company should develop forecasting process, efficient forecasting process can help the industry to reduce a cost.
Obviously the company losing the market share and customers, they need to improve the resource and operation system in the company they need to know the real customers need. Supply chain management can help the company to operate transport process, deliver to customers and stock products, if the company is use efficient supply change management, and use the right way, it can help the company be able to archive in the market share and company's goal.
Economic in Australia develop and growing, the paint market associated with them also grow, if walttyl can find a real problem and they can develop a new supply chain management and use the new knowledge to control supplier, they can become a leader in the paint market.