The Saratoga Supply Company Needs a Strategy
Key Issue
Saratoga company is facing a business challenge, which is a decline in the supply of their products such as paper clips, desktop computers, copying paper, and many other goods they deal in supply. The company CEO was, is trying to rethink a possible strategy to curb this problem and has decided to seek some views from his staff members Darleen and Gary. It’s the declining sales in supply that are driving the CEO of Saratoga company to look for a strategy to restore the company so that it does not shut down.
Contributory Factors:
- The decline in the supply of items like computers; copying papers is that the customers who used to depend on Saratoga to supply for them have opted to do online buying and are buying directly from the manufacturers.
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- The introduction of e-commerce has led to intermediaries like Saratoga to lose make as the manufacturers are supplying directly to those customers who are ordering direct from them.
The Root Cause.
Saratoga is facing a decline in sales of its supply products like paper towels, cleaning solvent, among other goods which have made the CEO worried about the future of Saratoga supply. The acceptance of manufacturers to allow the customers to shop online and deliver the goods to them is the root cause of the decline in the number of products by Saratoga company. The introduction of online shopping due to evolution in technology that enables direct contact between the manufactures and customers to be connected is the cause that is killing intermediaries’ partners like Saratoga.
Solution
The Saratoga CEO should talk with the manufacturers they enter into a business agreement that will let the manufacturers supply to them the goods. The company acts as a storage warehouse where the manufacturers will be providing their surplus produced goods. They can also form a partnership that will agree on certain benefits the manufactures will get so that they can use them to provide the products. The other strategy is that Saratoga company should start thinking of providing spare parts computers so that they can fetch more market. They should also introduce online sales the way manufacturers do so that they can reach more customers and introduce free delivery services as a strategy to attract and maintain more customers (Chan, 2018).
Advantage
Wes, as the head of the company, should come up with new measures that will keep them in business since he is the head of the company. He should learn the market pattern and adapt it so that they do not go out of business. Wes and his team in the company should develop a robust website so that they can use to supply their goods (Wang et al. 2016).
Disadvantage
It is challenging to depend on the manufacturers to get goods from them and supply on their behalf as online marketing is eradicating supplies by linking customers to manufacturers directly.
Final suggestion
- I suggest that Saratoga should introduce free delivery services so that to maintain his clients.
- The company should come up with a strategy like selling spare parts that manufacturers do not produce. They should manufacture the spare parts of the products that make products and offer repair services to damaged goods like office furniture and computers.