Introduction
ReignCom prides itself as a well renowned electronics company. In addition, it is also an entertainment company. As a matter of fact, the company has its headquarters in South Korea. It should be known that is the parent company of Funcake entertainment and iriver. Iriver manufactures Mp3 players while Funcake provides entertainment services (GDN, 2011, p. 18).
As far as our case is concerned, the company has various challenges that it is currently facing in the market place. In this case, there are market changes in Mp3 players. This therefore forces the company to come up with a new business strategy and supply chain to enhance its activities (Simchi-levi, 2007, p. 15). In a broad perspective, the new business strategy will have various effects on the company’s supply chain.
Discussion
ReignCom is currently faced by a tricky market situation that needs to be critically looked at for sustainability. The company is facing a saturated MP3 market and this is a worrying trend. To deal with this situation, the company has to come up with a new business strategy that will enhance its sales around the world (GDN, 2011, p. 14). This is because it has a presence in various markets with diverse and distinct needs.
Other challenges have been brought about by an increase in competition. In this case, it should be known that the MP3 market has a lot of players. Therefore, for a company to be profitable and successful, it should have an effective supply chain to reach various markets at the right time (Hugos, 2006. p. 28).
As far as the supply of MP3’s is concerned, there are various security issues that need to be sorted out. This is because the company needs to protect online shopping while giving customers a good experience that will leave them satisfied. It will be wise for the company to enhance its security measures to reach many customers and attract others for sustainability (GDN, 2011, p. 27). The company has also been faced with a challenge of reaching far markets.
This can be blamed on its business systems that have hindered its supply chain as time goes by. Because the market is almost saturated, the company needs to review and enhance its business systems to support its supply chain and reach as many markets as possible.
The company’s supply chain strategy is based on value addition and that is why it has been growing as time goes by (Hines, 2004. p. 34). As a matter of fact, it has been enhancing its supply chain relationships with different businesses to reach different markets.
The old strategy of value addition will continue to work in future because the market is saturated. To make it sustainable, the company needs to review this strategy to suit different markets because of competition. Although China has a wide market, it has a lot of products and this has created a lot of competition.
In this case, the country is highly competitive. Therefore, the company needs to enhance research and development to come up with new products that will make it unique in the market (Hugos, 2006. p. 45). This will give it the customers that it needs for long term sustainability.
Conclusion
As far as supply chain management and business strategy is concerned, the company needs to enhance its business systems. This is because business systems and overseeing product development are related to a sales and marketing (Hugos, 2006. p. 11). As much as the company might have a good supply chain, it needs highly innovative products to compete well. This will likely increase its market share and dominance.
Through this, the company will be highly successful and this will make it more competitive. The strength of such an initiative will be seen in competitive advantage (Hines, 2004. p. 4). The only weakness can be seen in the replication of the company’s adopted strategy. Wholesomely, ReignCom has a great future through good product development.
Reference list
GDN. (2011). Reigncom Ltd Officially Changes Name To iriver Ltd. Web.
Hines, T. (2004). Supply chain strategies: Customer driven and customer focused. Oxford: Elsevier.
Hugos, M. (2006). Essentials of Supply Chain Management. New York: John Wiley & Sons.
Simchi-levi, E. (2007). Designing and Managing the Supply Chain. New York: McGraw Hill.