What would be the differences you would expect in operations

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Reference no: EM133298734

Topic: Consider the difference between the value chain activities of jean manufacturing from the Old Navy brand (cost leadership strategy) versus the activities of getting a custom-made pair of jeans from Dolce & Gabbana (D&G) which has a differentiation strategy. What would be the difference in human resources, in-bound logistics or procurement, and service?

The human resources department at the manufacturer of Old Navy jeans are going to be looking for people who can cut and sew quickly. The designers are hired who can design jeans that are easy to make. The focus will be on the productivity of employees. The HR department at D&C are looking for designers who can bring a unique style to the jeans. They will also make sure they hire people who are able to take accurate measurements and sew a high quality jean that people will be willing to spend over $1000 to own. For the in-bound logistics or procurement the focus is on negotiating low prices from suppliers for Old Navy while D&G will focus on the quality and uniqueness of the fabric, thread and buttons or zippers. Customers of Old Navy expect to have a return policy but not a lot of warranties or guarantees but the customers of a custom made jean will probably expect D&G to fix or replace the jeans if they do not meet expectations of an amazing fit.

Question: If you were able to observe all the activities in their value chains, what would be the differences you would expect in operations, outbound logistics, and marketing & sales?

Reference no: EM133298734

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