a).Factors for the decision
1.If Kenya has the capacity to assemble the parts to make a bike.
2. Whether the cost of a complete bike is satisfactory
3.If there is variations in the taxation levied on the parts and that of a complete bike
4. Whether the variations in the expected profit margins for parts and a complete bike is desirable.
5. Whether there is a ready market for the complete bike (demand)
6. If it involves a distribution cost involved
b). Limitations of spurcing
1. It is limited to profit sharing
2. Long decision making Chanel since it involves more than one parties.
C.Benefits of sourcing
1. Cheaper cost
2. High quality of goods or services
Limits of sourcing
1. High taxation cost
2. Frustrations from the host country
3. Brain drain
d). Importance of market analysis
1. Helps in identifying the market gaps
2. Helps in identification and analysis of the main competitors
3. Market analysis helps in discovering new products to satisfy a given market segment
4. Market analysis helps in identifying various segments and tailoring products towards satisfying the needs.
5. Market analysis helps in formulation of competitive strategies.
e. Disadvantages of EDI
1. No bargaining on electronic data interchange.
2. High uncertainty rate
3. High cost of communication since it requires expensive gadgets such as a laptop or a smart phone.
Real Educator answered the question on September 14, 2018 at 13:03
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