Introduction of acoustic office products at

Marijke de Jong Rijkuniversiteit Groningen

Student number: 1770446 Faculty of Economics and Business Broerdijk 27; 1678 HA Oostwoud BA: Small Business & Entrepreneurship

Mail: m.de.jong.44@student.rug.nl Coordinator: P.S. Zwart Phone: +31 620475878 Second coordinator: H. Zhou

Introduction of

acoustic office

Abstract

This research is aimed at finding a strategy to launch the acoustic office products of the firm Voortman Kantoormeubelen. Three important concepts are elaborated: supply chain, the selection system, strategic launch decisions. These concepts are theoretical researched first, a qualitative method is used to research the concepts in practice. Based on the theoretical research three strategic options are mentioned, these options are placed against the conclusions of the qualitative research. Based on these findings the strategic launch decision of delivery to customer in collaboration with an acoustic advice organisation is the best option.

Keywords

Preface

I would like to thank everyone who has supported me during my master thesis. Furthermore I would like to thank everyone who has made a contribution to complete my master thesis.

First of all I would like to thank my parents, Bauke de Jong and Janke de Jong-Looijenga, for their emotional and financial support during my study. They made it possible I can compete my study business administration by writing this master thesis. Second I would like to thank my boyfriend Jasper van der Weijde, for his emotional support during the writing of my master thesis. Also an important person in making and completing this thesis is my coordinator Peter Zwart. Without his professional knowledge, help and guidance during the process I could not completed this master thesis in this way. He helped and guided me during the process to make it a complete research. Besides these persons I would like to thank follow students, friends and family for their support during the process of my master thesis. They helped me with sharing their knowledge and ideas to complete the thesis.

1. Introduction

Companies thinking new ways and possibilities to distinguish themselves from competition and survive in today’s market competition. For instance, firms can distinguish themselves in the market by introducing new product – market combinations. These can be in line with trends and developments in the market or the firm can set new trends by itself. Firms can wonder; ‘where is a gap in the market we can fulfil?’. For small and medium sized enterprises (SMEs) this is even more important, because they have limited resources compared to large firms. To compete against the large firms, SMEs have to be innovative. However it is not enough for a firm to invent a new product because it also needs to be introduced in the (new) market, the product needs to be sold to make profit. In order to achieve this there needs to be knowledge about the market. In this study it revolves around Voortman Kantoormeubelen B.V., a SME located in the Netherlands. Voortman is trying to find a strategy used for the commercializing of their acoustic office products to the market.

Voortman Kantoormeubelen B.V., located in Purmerend (NL), employs around 45 employees and is managed by two brothers. Voortman is specialized in making office furniture out of steel, like desks and storage units. Their market is business to business which means they produce for other companies (intermediaries) who sell their product. The distribution of the products is indirect. Voortman works with around 40 different dealers, which all have their own distribution network. The dealers sell the products Voortman produces, due to this construction they can deliver nationwide. In the market two distribution models are used; one in which firms have their own sales organisation and the other firms use dealers to sell their products.

To research this question the selection system of Voortman needs to be analysed. A selection system is needed in a market to evaluate new product-market combinations. In the current market of Voortman expert selection is dominated, so expert selectors evaluate the products Voortman produces and determine the value for the customer of the products. Expert selection is a system where a special evaluative capacity is attributed to a relatively small group of selectors who are not members of the group in which the selection process takes place (Wijnberg, 1995). The expert selectors do not create value but determine value (Wijnberg, 2004). The expert selectors of Voortman are the dealers, because they can make, or break, the reputation of the products at the customers. The dealers are not only part of the selection system of Voortman, they are also a link in the supply chain of Voortman. Voortman has a strong and straightforward relationship with their dealers, because they need them to sell the products in the market. Because of this unique relationship, it is hard for Voortman to set pressure on their dealers to get more knowledge and expertise in the field of acoustic. In the supply chain boundaries are set in the dividing of the different products each firm produces and so sells. In this research a strategy will be chosen to, eventually, launch the acoustic office products in the right market. This is done through analysing three different items: the supply chain, the selection system and the role of selectors in the selection system, and the possible strategic launch decisions.

1.2 Research questions

In this research there will be one main question and three sub questions that will be researched. All the questions are related to the company Voortman and their acoustic office products. The main question to answer is:

What strategy can be used to launch acoustic office products?

The sub questions are:

Subquestion 1: What is the supply chain?

Subquestion 2: What is the role of the selectors in the selection system?

Subquestion 3: Which strategies can Voortman choose to launch their acoustic office products?

1.3 Research methodology

The techniques that will be applied are interviews and desk research. Desk research is used for collecting and structuring information that is already available through internet and from Voortman. Interviews are used to collect and ask the personal opinions of people or partners that work in the field of (acoustic) office products. Furthermore during the interviews questions can be requested to collect more information on the topic when it is not clear. The interviewees will be selectors in the field of (acoustic) office products and the directors and few employees of Voortman. It depends on which information to collect, who will be interviewed about it.

The information and the questions for the interviews are collected through structuring the theory about the three different topics of interest in this research. At the end of each theory paragraph variables will be given as input for the interviews. More information about the respondents and the data collection will be given in chapter 3, Research Design.

1.4 Structure of content

2. Theory

Chapter 2 explains the theory about the concepts used in this research these are: supply chain, selection system and strategic choice. The concepts are elaborated in separate paragraphs. Each paragraph ends with a conclusion and the variables used to measure the concept. The relations between the concepts are shown in a conceptual model at the end of this chapter.

2.1 Supply chain

In the first section the definition of the supply chain is elaborated. The second section explains what supply chain management is and what it entails. In the last section the measurement of supply chain management is discussed.

2.1.1 Definition

Every firm participates in an industry which is a group of actors that is involved in a particular competitive process (Porter, 1980; Wijnberg, 1995a). This group offers products or services that are comparable and are compared in order to determine the value of each of these goods. Firms can collaborate to come to a jointly end product, this process is called the supply chain, where each firm contributes as a link to the end product. Every focal organisation has its own supply chain and this supply chain can include several focal organisations. Vaaland and Owusu (2012) define the supply chain as a series of companies (links) in which the consecutive stages of production of an economic product takes place, from primary producer to final customer. Beamon (1999) defines the supply chain as an integrated process wherein raw materials are manufactured into final products, then delivered to customers (via distribution, retail, or both). Beamon (1999) states a supply chain contains different echelons, for example supply, manufacturing, distribution and consumers, where each echelon may comprise numerous facilities. The complexity of the supply chain areises from the number of echelons in the chain and the number of facilities in each echelon (Beamon, 1999), because every customer, with exception of the end-user, is also supplier and any supplier is also a customer, with exception of the very first link in the supply chain. Because of complexity in relation to a conventional chain, it is highly relevant to focus on the co-operation between several parties embedded in the network.

define the concept of the supply chain as the formation of a value chain network, consisting of individual functional entities committed to providing resources and information to achieve the objectives of efficient management of suppliers as well as the flow of parts. Lambert, Cooper and Pagh (1998) define the supply chain as a combination of three closely related elements. 1. Supply chain structure, determined by the network of participants involved in the supply chain and the relations between those (Lambert et al., 1998). In the supply chain partners are working together in an element of trust between purchaser and supplier (Morgen and Hunt, 1994). 2. Business processes, defined by the activities that produce a certain output of value for the customer (Lambert et al., 1998). 3. Management components, described by how business processes and structures are integrated (Lambert et al., 1998).

Arend and Wisner (2005) state the aim of the supply chain is to integrate the key business processes among the partners to add value for the customer, reached by connecting suppliers to distributors. Suppliers achieve this through connecting manufacturing and assembly organisations. Distributors achieve this through connecting retailers and end-customers. These connections are made to make the process more efficient and the product and services more differentiated. Furthermore the integration of the key business processes of the partners in the supply chain can also enhance the ability to leverage scalable competences, like enforcement of innovative product design and radical process innovation, and to access complementary partner assets (Arend and Wisner, 2005). This shows how the three elements Lambert et al. (1998) describes are closely (inter)related to the idea of Arend and Wisner (2005).

In this research the supply chain is defined as the formation of a value chain network consisting of a series of firms wherein (raw) materials are manufactured into final products and then delivered to the final customers. This definition is mainly based on Beamon (1999) and Lau and Lee (2000). This definition is chosen because its focus on the value chain, also the focus of this research. The three closely related elements of Lambert et al. (1998) are covert in this definition: 1. supply chain structure: the network of participants; 2. business processes: activities that produce value for the customer; 3. management components: how processes and structures are integrated.

relations and partnerships that are important in the acoustic market. Both descriptions are therefore concepts in the conceptual model. The description of the supply chain is based on the three elements of Lambert et al. (1998), see appendix 8.

2.1.2 Supply chain management

Supply chain management (SCM) is a set of activities undertaken through an enterprise to promote effective management of its supply chain (Lenny Koh, Demirbag, Bayraktar, Tatoglu and Zaim, 1997). SCM consists of a set of approaches utilized to effectively integrate suppliers, manufacturers, logistics, and customers for improving the long-term performance of the individual companies and the supply chain as a whole (Chopra & Meindl, 2001; Lambert & Cooper, 2000; Zhao & Simchi-Levi, 2002). Van Weele (2010) defines SCM as the management of all activities, information, knowledge and financial resources associated with the flow and transformation of goods and services up from the raw materials supplier, component supplier and other suppliers in such a way that the expectations of the end users of the company are met or surpassed. Lummus, Vokurka and Alber (1998) and Tan (2001) states that SCM tightly links together several consecutive elements of the industry value chain from upstream suppliers, to subassembly manufactures, to final manufactures, to distributors, to customers, to make the process more efficient and the end products and services more differentiated. SCM is about both the links in the value chain entities upstream, like supply and manufacturing, and downstream, like logistics and distribution. SCM is also a way of obtaining vertical integration benefits without its formal ownership costs. To be successful in SCM it requires the integration of the value chain entities, a cooperative and collaborative environment needs to be created that facilitates information exchanges, materials and cash flows (Kukalis, 1989). SCM has a central objective for enterprises, the creation of a major source of competitive advantage. This implies enterprises wants to differentiate itself in the eyes of the customers from its competitors, inter alia, this can be done by operating at a lower cost and hence at a greater profit (Christopher, 1992).

In the literature there is not a generally agreed definition of SCM, however it is agreed to cover generally all business processes between vertically linked organisations (Bask and Juga, 2001; Bowersox, Closs and Stank, 1999; Cooper, Lambert and Pagh, 1997; Lambert et al., 1998). Persson (2002) states SCM definitions can be divided in three groups, these will be explained below.

and organised well potential benefits include product and delivery process quality, like shorter delivery times, more reliable delivery promises, fewer schedule disruptions, cost savings (in inventories) and risk reductions (Bask and Juga, 2001; Christopher, 1998). Managing and controlling the supply chain can bring certain problems and issues when the management control is expanded to examine. Issues like: who in the supply chain should perform certain production functions, how this will be assigned in a collaborative framework and what is a fair measurement and compensation schema so all supply chain members are properly engaged (Mentzer, Stank & Esper, 2008).

2) Relation-oriented definitions; focusing on the relationships between the actors in the supply chain, and how co-operation and mutual interest can lead to improvements (Persson, 2002). An important issue in managing the supply chain is the ability to develop and maintain sound business relationships across the firm boundaries. It is essential to recognize the power structure between buyer and seller (Cox, 1999) and to understand it, to manage the relationship between buyers and suppliers in an appropriate manner (Cox, 2004). Cox, Watson, Lonsdale and Sanderson (2004) refer to this as the ‘power resources’ in the transactions. Firms are looking beyond the traditional logistic boundaries, to form partnerships, with the aim of creating a seamless flow of goods and information from raw materials supplier to the end consumer (Quayle, 2003).

3) Process-oriented definitions; focus on activities and processes in the supply chain where SCM typically is defined as: the integration of key business processes from end user to original supplier that provide products and services and information that add value to customers and other stakeholders (Lambert et al., 1998). SCM and related strategies are important for the success of a manufacturing firm, because the cost and quality of goods and services sold are directly related to the cost and quality of goods and services purchased (Lenny Koh, et al., 1997). SCM is also about how firms share advertising responsibilities, like cooperative advertising, for the benefits of all members of the supply chain, or ask suppliers to develop production plans based on the forecasts of end customers or consumer demand (Mentzer, et al. 2008).

Managing and organizing the flow of materials and the relationship between the actors in the supply chain are both described in this definition. The definition is also chosen because of the focus on the expectations of the end user of the company, so added value for the customer is important. This is the link with the third group of definitions of Persson (2002).

2.1.3 Measurement of supply chain management

Carter and Jennings (2002) state the supplier performance can be enhanced through improved trust and cooperation. Another aspect of the strategy in the supply chain context is related to the organisation of production (Vreeland and Owusu, 2012) and the danger of non-cooperative ‘power driven’ market governance (Drake and Schlachter, 2008; Locke and Romis, 2007). Part of this is also the importance of a holistic view of the supply chain for the organisation (Ciliberti, Pontrandolfo and Scozzi, 2008a; Petrovic-Lazarevic, 2008). It is thus important to be proactive in doing business.

To be proactive in doing business an organisation needs to have clear what their SCM activities are and how these work out. This can be done through measuring the SCM in an organisation. Lenny Koh, et al. (2007) distinguish three measurement pillars of SCM, these are: supply chain management practices, operational performances of supply chain management and supply chain management related organizational performances. The pillars can give an insight in the relationship between SCM practices and the performance of a SME. The pillars can also be connected to the three SCM definitions Persson (2002) describes, this will be explained below.

The first measurement pillar is the supply chain management practices.

Lenny Koh, et al (2007) state SCM practices involve a set of activities undertaken in an organisation to promote effective management of its supply chain. This can be linked to the relation-oriented definitions of Persson (2002), because these focus on the relationships between the actors in the supply chain, and how co-operation and mutual interest lead to improvements. Li, Ragu-Nathan, Ragu-Nathan and Rao (2005) develop and validate an instrument (appendix 1) with six dimensions to measure supply chain management practices.

Empirical studies have investigated vertical supplier and customer integration simultaneously, due to strategic supplier partnerships, and confirm that those firms with upstream and downstream integration outperform others (Juttner, Christopher & Godsell, 2010). From perspective, a supplier strategy cannot only be expressed in term of closeness and quality of the social relationships (Gundlach, Achrol and Mentzer, 1995). It has to be conceived as a strategic inter firm integration in which supplier partnerships are considered as assets in the strategic planning of the firm (Johnson, 1999). This can emerge in a range of strategies and approaches, like for example JIT, for supplier partnerships (Juttner, et al., 2010).

2) Customer relationship comprises the entire array of practices that are employed for the purpose of managing customer complaints, building long-term relationships with customers, and improving customer satisfaction. A question that could be used is: ‘we frequently evaluate the formal and informal complaints of our customers’.

3) Information sharing refers to the extent to which critical and proprietary information is communicated to one’s supply chain partner. The question ‘we share our business units’ proprietary information with trading partners’ can be used.

4) Information quality includes such aspects as the accuracy, timeliness, adequacy, and credibility of information exchanged. The question ‘information exchange between our trading partners and us is timely’ can be used here.

5) Internal lean practices, contains the practices of eliminating waste (cost, time, etc.) in a manufacturing system, characterized by reduced set-up times, small lot sizes, and pull-production. A question used for this dimension could be ‘our firm has a continuous quality improvement program’.

6) Postponement, defined as the practices of moving forward one or more operations or activities (making, sourcing and delivering) to a much later point in the supply chain. A question used for this dimension could be ‘our goods are stored at appropriate distribution points close to the customers in the supply chain’.

described below: ‘How did your business perform over the last three years relative to their competitors on each of the operational performance criteria?’.

1) Flexibility. SCM practices may enhance an organisation’s flexibility, defined as the ability of an organisation to adapt to the changes in its business environment. The flexibility can be increased through the adaption of ‘many suppliers’ practice, this can generate alternative sources of procurement by reducing supply chain risks. Building long-term partnerships with suppliers and customers is also important because it can help to improve the flexibility of the supply chain by creating mutual understanding among the members in the supply chain (Chang, Lin, Chen and Huang, 2005). Outsourcing is a frequently used SCM practice by firms, because it provides flexibility to internal capacity to be sure of their resources for core activities.

2) Reduced lead time in production. Practices like e-procurement, delivery from stock, single sourcing and JIT may help to reduce delivery time and increase responsiveness; this can be a competitive advantage to the firm.

3) Forecasting. The most important feature in the performance of supply chains is forecasting accuracy, a combination of joint performance on resources and customer demand prediction. The accuracy of predictions can be improved through close partnerships with suppliers and customers that are anticipated on the sharing of information so fed into demand forecasts, which will lead to more confidently in the delivery of the order.

4) Resource planning and cost saving. Using strategic planning appropriate, anticipating the utilization of resources will be optimized which lead to cost savings, like shorten the cycle time through reducing set-up time, eliminating non-value adding activities that can result in improved efficiency and reduced cost per unit.

5) Reduced inventory level. Inventory hold can be minimum or reduced through JIT; this allows delivering only when needed. This can also reduce free warehouse space and untighten cash flow (Mistry, 2006), SMEs with a constant need for cash to run the firm can perceive this as particularly important.

and processes in the supply chain where supply chain management typically is defined as: the integration of key business processes from end user to original supplier that provide products and services and information that add value to the customer and other stakeholders. Lenny Koh et al. (2007) used a standard question in their study which can be answered on a five-point scale for each measure described below (appendix 3): ‘How did your business perform over the last three years relative to their competitors on each of the SCM-related organizational performance criteria?’.

1. Increase in sales. Efficient use of chain resources would lead to lower product cost, better product quality, faster response and therefore eventually higher market share. These effects characterize a competitive supply chain in the market. Through practice of supply chain benchmarking, emerging as a leader in the industry, a firm can provide the opportunity of increased sales.

2. More accurate costing. Firms can use an e-procurement tool to provide more accurate costing of the product and service produced, like JIT or outsourcing of activities.

3. Increase in coordination between departments. Using strategic planning can increase the integration between various departments of a firm through information sharing and retrieval.

4. Increase in coordination with suppliers. Using fewer suppliers and forming close partnerships with them and practice of e-procurement in the supply chain can increase coordination with suppliers and helps to build more effective (supplier) relationships. This can lead to process, product and technology innovations.

5. Increase in coordination with customers. The increase in coordination with customers can be achieved through the forming of close partnerships with customers, like the suppliers partnership. Such a partnership can help reduce late design changes and/or order changes, related to the delivery performance of a firm.

2.1.4 Conclusion

In the above sections of this paragraph the theory about the concept supply chain and supply chain management is elaborated. Here a conclusion, based on the above explained theory, gives the variables that are applicable to the conceptual model of this research.

2.2 Selection System

In the first section the definition of a selection system is elaborated. The second section explains the different types of selection systems. In the last section the different roles selectors can have in selection systems is discussed.

2.2.1 Definition

The basic idea of selection system theory (Gemser, Leenders and Wijnberg, 2008; Mol and Wijnberg, 2010; Priem, 2007; Wijnberg, 2004; Wijnberg and Gemser, 2000) is the structuring of competitive processes through determining the value of the product. The selection system provides a shorthand description of the relation between selectors and selected the two focal players. There are the actors who are competing with each other, called selected. And there are the actors who determine the value of goods that are being offered by the competitors in the network, called the selectors (Mol & Wijnberg, 2007). Wijnberg (1995) states a selection system with a description of the competitive process is the way in which winners are distinguished from losers. There are three standard or ideal variants of the selection system (Wijnberg, 2004), these are market selection, peer selection and expert selection, see paragraph 2.2.2.

Based on the above literature, in this research a selection system is defined as an approach where the actors, the selected and selectors, have its focus on how and by whom value is determined in competitive processes. This definition is chosen because it suites the definition of Wijnberg, who is the founder of the selection system theory, and because its focus is on value which is in line with the supply chain.

2.2.2 Types of selection systems

There are three standard or ideal types of the selection system distinguished: market, peer and expert selection. The selection system consists of ‘selectors’, the actors whose evaluations determine the value, and the ‘selected’, the objects of evaluation. Each selection system has its own dominant selectors (Wijnberg, 2011), this will be explained below in more detail.

Market selection: The first type is market selection, also called the tradition type. In this type final consumers are the selectors and producers the selected (Mol and Wijnberg, 2011; Wijnberg, 2004; Wijnberg and Gemser, 2000). In this case the consumers are self-reliant in their evaluation of competing products (Mol and Wijnberg, 2011). This is why this type is also characterised as the perfectly competitive market (Wijnberg, 1995). We are all market selectors because we consume products from, for instance, the supermarket.

Peer selection: The second type is peer selection. In this type the opinions of other producers, the peers, determine the outcome of the competitive process (Wijnberg, 2004). So the opinion of fellow producers, called peers, forms the basis on which consumers make their judgements about the value of the product (Mol and Wijnberg, 2011). In essence this means the group of selectors and the group of those who are selected are part of the same group in peer-selection (Debackere, Wijnberg, Clarysse and Rappa, 1994; Wijnberg, 1995). The academic world is an example of peer selection.

the value of competing products and thus can be expert selectors, is particularly significant in the competitive process (Hirsch, 1972; Hsu and Podolny, 2005; Zuckerman, 1999). Ethical drugs are an example of expert selection, because the opinions of physicians determine the success of the producers of the drug.

In every industry with a competitive process a particular selection system can be identified (Wijnberg, 2004). However it should be emphasized that these are standard or ideal types. In the real world the outcomes of competitive processes are often determined by a combination of the different types of selection systems, so a mixed form will arise (Wijnberg, 1994; Wijnberg, 2011; Wijnberg and Gemser, 2000). There can be more than one system and the systems can overlap according to the standard types. It is important to keep this is mind when analysing a competitive process. For instance, if an average buyer of a book has preferences partly constituted by word-of-mouth from other buyers and partly by the opinions and reviews of book reviewers, both market and expert selection governing the market.

2.2.3 Selectors’ role in selection system

The purpose of the selection system framework (Debackere et al, 1994; Wijnberg, 1995b, 1997; Wijnberg and Gemser, 2000) is to describe and analyse the characteristics of particular processes of competition and competitive areas. This is done through focusing on the characteristics of the actors who are being selected and the actor who are selecting, the selectors, ánd the nature of the relations between these groups (Wijnberg, 2004). Selectors can have different roles in the competitive process, which can imply some selectors can be more important as selectors than others (Wijnberg, 2011). Selectors can thus be graded in respect of the influence their evaluations have on the preferences of customers and the outcome of competitive processes. These relative gradations of influence will determine how the benefits of being a selector are distributed (Wijnberg, 2011).

sequence in the construction of an actual classification system, although it seems like separate activities. The process of selection can also restart itself later (Wijnberg, 2011). For instance, the product is evaluated as bad at first, but after (radical or incremental) innovation evaluated as good because of reordering of the system and set of selectors. As explained above, the selectors can be heterogeneous however it is still possible that the same selectors operate in all stages. On the other hand, however, different sets of selectors can operate in each or some of the separate stages. For instance, expert selection dominates the first two stages and market selection the last two.

In these different stages a distinction can be made with two economic roles of selectors (Mol and Wijnberg, 2011). First, selectors explicitly or implicitly identify the set of legitimate competitors, thereby distinguishing the ‘selected’ from the ‘non-selected’. So selectors act as gatekeepers, not legitimate products for evaluation will be excluded (Wijnberg, 2011). Second, within the set of selected, selectors separate winners from losers by attributing more value to the products of highly valued producers and less to those of others, so making the actual evaluation. These two roles can be performed by the same set of selectors, but also by different set of selectors (Wijnberg, 2011). Both roles will be explained below according to the three dimensions Mol and Wijnberg (2011) distinguish for resource value: before selection, in selection and after selection.

1. Before selection

with the resources to elicit reviews from major newspapers. Through reputation and an active publication department, the book publisher can count on having its books receive good reviews. Resisting competing products from serious evaluation by selectors has thus the effect of directly enhance the focal organisation’s chance of getting their products selected (Mol and Wijnberg, 2011). The music industry is an example of this, the record companies are competing to get their music on air. A very effective strategy for realizing competitive success is to ensure your competitors have denied access to airtime (Caves, 2000; Coase, 1979). As explained in the above examples, an organisation can use their specific resources in being selected, this serves the idea that these can be of great value in the capacity to strategically position an organisation in relation to the selectors. To determine these resources for a firm an authority needs to give more information about the specific market. This also applies to Voortman, an authority or an expert can give more information about the acoustic office product market. Mol and Wijnberg (2011) define resource value along the ‘before-selection’ dimension as: The capacity of a resource to allow an organisation to either effectively enter a particular product selection system as one of the selected or prevent its rivals from doing so.

2. In selection

emotional side of purchasing decisions (Mol and Wijnberg, 2011), for example the friendliness of a restaurant, or the character of a wine.

When a firm wants to thrive in competitive processes, they need resources that enable them to score highly with regard to the particular characteristics that are valuable by the dominant selectors, whether these are technical or emotional criteria (Mol and Wijnberg, 2011). The examples mentioned can be applicable to Voortman, however an authority or expert needs to give more information about the acoustics market in order to determine this. Mol and Wijnberg (2011) therefore state that the resources that help to bring about a favourable rating concerning these technical and emotional characteristics are valuable to organisations. Mol and Wijnberg (2011) define the resource value along the ‘in selection’ dimension as: The capacity of a resource to create product characteristics that have value according to product selectors.

After selection

It can be concluded the value of resources can only be understood in relation to selection systems. Any resource whether singular or bundled can be rated along the three dimensions (Mol and Wijnberg, 2011). Innovations, radical of incremental, can have consequences for the ordering of the system and the value of resources. Also how the three dimensions are interrelated can make a difference in the value of the resource(s). A resource has value if it helps the focal organisation to achieve a particular objective, it is also valuable if it can be used towards competitors achieving the same objective. This refers to the before- and after-selection dimension. The symmetry in the in-selection dimension is rather implicit than explicit, pertaining to the way in which selectors attribute value to some products but not to others. For instance, the resource that scores a high value on all three dimensions is more important than three separate resources that score a high value on one of the three dimensions. Mol and Wijnberg (2011) mention that the three dimensions explained are expressed in terms of their contribution to the competitive processes of the organisation in the external selection system. This does not explain how organisations can establish and maintain a pool of superior resources to execute this function. According to Mol and Wijnberg (2011) this can be explained with the internal selection system, where the value is created by the members of the organisation. However this is not the scope of this research, so it will be not explained further.

2.2.4 Conclusion

In the above sections of this paragraph the theory about the concept selection system is elaborated and the role selectors can have in the selection system is explained. Here a conclusion, based on the above theory, gives the variables that are applicable to the conceptual model of this research. These are the variables that are most applicable to the research of acoustic office products.

2.3 Strategic choice

In the first section the definition of a strategy is elaborated. The second section explains the strategic choices in the supply chain as a typology. The third section elaborates the strategic new product decision a firm can make. In the fourth section the strategic launch decision is elaborated.

2.3.1 Definition

Strategy is the mediating force between the firm and its environment (Raymond and Bergeron, 2008), firms characteristics and environment characteristics must be compatible with the firms strategy if a significant competitive advantage will be created. In the literature there are many definitions of strategy. Porter (1980) adopted a perspective wherein strategy is constituted by offensive and defensive actions undertaken to counter competitive forces and thus provide the firm with an increased return on its investment. Chandler (1962) described strategy as the process of determining the organisation’s long-term goals and objectives, of adopting a course of action and allocating sufficient resources. Hambrick (1980) defines strategy as a generally viewed pattern of important decisions that 1) guides the organisation in its relationships with its environment, 2) affects the internal structure and processes of the organisation, and 3) centrally affects the organisation’s performance. Singh, Garg and Deshmukh (2008) define a firm competitive strategy as the specification of the potential products and markets, long-term objectives, and policies for achieving the objectives. Johnson, Scholes and Whittington (2009) define strategy as the direction and scope of an organisation over the long term, which enables it to achieve competitive advantage through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. These strategy definitions are all general definition applied to any organisation. In the literature a distinction is made between strategy applied to large sized enterprises and to small- and medium-sized enterprises (SMEs). Definitions that can be applied to SMEs are explained below.

for effective customer and supplier management. Hong and Jeong (2006) underline this by stating that the competitive priorities of SMEs lies in market niches through sustaining profitable market position and that their key strategy is: focus on specialized market.

Based on this, in this research strategy is defined as offensive and defensive actions undertaken to counter competitive forces, to determine the firms’ long-term goals and objectives. The focus of the strategy is on building unique competences. This definition covers the above mentioned definitions and fits the purpose of this study: the introduction of a new product (group).

2.3.2 Strategic supply chain typology

For a SME it is important to decide ‘where to compete’, like the positioning in the supply chain, and ‘how to compete’, i.e. the strategic focus (O’Gorman, 2001). SMEs always searching for ideas to survive in the market, therefore they need to clarify their strategic focus and supply chain relationship position (Berry, 1998; Cooper, Willard and Woo, 1986; Entrialgo, Fernández and Vázquez, 2000; Fronmueller and Reed, 1996; Kemppainen and Vepsäläinen, 2003). The strategic focus of the SME refers broadly to how the SMEs competes within supply chains in terms of either low cost operations or value added operations, product or service development (Levy, Powell and Yetton, 2001). The supply chain relationship position relates to competitive positioning by particular SMEs. The strength of the relationship in the chain may even affect the bargaining power of the SME with their customers (Kalafatis, Tsogas and Blankson, 2000; Olhager, 2003). According to Hong and Jeong (2006) the survival and growth of SMEs depends on how SMEs effectively allocate resources through their strategic focus, and secure better negotiation terms through improvement of their supply chain relationship position.

are high value added are able to create a larger value potential with their products and services, however SMEs that are low value added have relatively less capability to create value potential (Kukalis, 1989).

Figure 1 shows the model. SMEs can measure high or low on the two defining characteristics of the chain position and strategic focus, which result in four SME classifications. A SME measuring low cost on strategic focus and low on chain relationship position, may be a small competitor in the market, is called ‘efficiency’. Efficiency SMEs usually accept cost reduction targets set by their customers and try to conform to their customer demands. A SME measuring low cost on strategic focus and high on chain relationship, may be able to work towards better cost targets with their customers, is called ‘coordination’. Coordination SMEs have a strong relationship position in the chain and have fairly substantial negotiating power with their customers. SMEs with a strategic focus on value added and a low chain relationship position, operating in a relatively collaborative market with competitive strengths, are called ‘collaboration’. The internal competencies of collaboration SME, even if their negotiation position is not strong, in relation to their value creation capabilities allow them to stay in business as viable members. Measuring both levels high a SME is called ‘innovation’, because such a SME has a sustaining competitive position. Their negotiating position is strong and their internal competencies in relation to value creation capabilities allow them to stay in business as a dominant member.

According to Raymond and Bergeron (2008) strategy is a mediating force between the firm and the environment, so a fit is needed to create a competitive advantage. This also fits the definition of strategy in this study, therefore a combination is made here. Figure 2 summarizes the essential supply chain management characteristics for the four types of SMEs, these are the business environment and management practices Hong and Juong (2006) identified. The first three characteristics describe the external context and the last two characteristics describe the internal context of the SME.

 Competition characteristics. Both efficiency and coordination SMEs compete on cost or

operational advantages. Information and knowledge-intensive industries have differences between collaboration and innovation SMEs, this lies in their ability to compete based either on their current product or service advantages and their innovative capabilities.

 Position in supply chain. SMEs that occupy a low position on the chain relationship position

tend to be expendable among multiple possible competitors. SMEs that have a high chain relationship position possess dominant value propositions, like reputation, brand image, management leadership and relationship strengths (Kalafatis et al, 2000; Olhager, 2003; Venkatraman, 1991).

 External relationship patterns are displayed in different ways within the supply chain of

SMEs, based on position strengths and competitive advantage. The efficiency SMEs have relatively weak negotiation strengths, therefore tent to accept cost reduction target terms dedicated by their customers. Coordination SMEs, also low cost strategic focus, use their supply chain relationship positions to secure better productivity improvement targets with customers. For SMEs that are supplier, value added strategic focus, the amount of product development effort is related to the extent and manner of engagement with their customers. Collaboration SMEs are therefore somewhat reactive in getting involved in product and service development efforts by their customers. Innovation SMEs will be more proactive because they initiate new product developments efforts with their customers, based on new products concepts that are valuable to their customers.

 Firm capabilities can make a distinction among SMEs through adequate or strong capabilities

pattern in relation to their key strategic focus. The efficiency SMEs possess adequate cost improvement capabilities to stay in business. The coordination SMEs have strong productivity enhancement capabilities and stand out among their competitors. Collaboration SMEs have adequate product or service development capabilities. The innovation SMEs has strong product development capabilities that results in multiple set of new products which improves their market position.

 Management process focus differs among the upper, coordination and innovation, and under,

The SME classifications and characteristics described can be used to determine the current position of Voortman and the future position in the market of acoustic office products. First it needs to be determined which classification fits best in the acoustic office market, and then the corresponding characteristics can be set. The classification of the SME needs to be compared to the one of Voortman to determine the future position. This is important because conditional on environmental and organisational characteristics (Covin and Slevin, 1990; Covin, Slevin and Covin, 1990; Kelley and Rice, 2002; Kunkel and Hofer, 1993; McDougall, Robinson and DeNisi, 1992; Sandberg and Hofer, 1987), greater focus on specific strategic choices (Sandberg, 1986) as well as greater stability of these choices over time (Freeser and Willard, 1990) improve firms´ survival chances (Duchesneau and Gartner, 1990; McCann, 1991), stimulate new venture growth, and fuel superior market and financial performance (Keeley and Roure, 1990; Naffziger, Hornsby and Kuratko, 1994; Ng, Pearson and Ball, 1992; Schroeder, Bates and Junttile, 2002; Vickery, Droge and Markland, 1993; Zahra, Nash and Bickford, 1995). Suitable strategic choices help firms overcome the constraints of their existing resource endowments by guiding the development of extant skills and by facilitating the emergence of new capabilities (Branzei and Vertinsky, 2006).

2.3.3 Strategic new product decisions

Prior to the launch of a (new) product a marketing strategy, statement of target market, desired positioning, and marketing mix must be clearly planned and developed (Calantone & Montoya-Weiss, 1994; Ottum, 1996). Bad launces are typified by poorly planned marketing strategies, resulting in incomplete product offerings, inadequate channel, poor targeting, no focus on effort, and slow response to product flaws (Stryker, 1996). Anthony Di Benedetto (1999) states all aspects of the marketing mix need to be considered in developing the marketing strategy and planning the strategic launch activities. It is thus important, according to Anthony Di Benedetto (1999), the product fits the marketplace if necessary based on input from market testing.

Concerning the promotion there must be consistency between the copy platform and the proposed positioning of the product. Furthermore, it should be assessed what kind of type of sales force is required and what amount of sales force training is needed. The pricing decisions need to be made in light of the effects of price on both unit demand and revenue. A distribution strategy must be developed for the product, and the need for structural changes in distribution must be assessed. Calantone and Montoya-Weiss (1994) state these marketing tactical decisions at the product launch stage concern the development of the marketing mix: achieving appropriate distribution levels, providing all necessary auxiliary services, determining acceptable price, and setting the levels of advertising and promotion such that both profitability and market penetration goals are met.

According to Debruyne, Moenaert, Griffin, Hart, Hultink and Robben (2002) a distinction must be made between strategic and tactical decisions. Strategic decisions differ from tactical decisions in the sense that they are more important, involve a substantive resource commitment and are difficult to alter once a trajectory has been selected (Grant, 1991). The literature suggests the following critical strategic decisions related to new product launches: product newness (Hultink, Griffin, Hart and Robben, 1997; Yoon and Lilien, 1985), marketing efforts (Gatignon, Weitz and Bansal, 1990; Guiltinan, 1993; Shankar, 1999; Yoon and Lilien, 1985) and targeting strategy (Lambkin, 1988; Lambkin, 1992).

Product newness: The more innovative a new product is, the more it may have significant

consequences for the competing firms in the market. Furthermore, the introduction of a truly innovative new product also captures more attention than the launch of one more ‘better mousetrap’ (Debruyne, et al., 2002). In order to determine the innovativeness of a product a distinction can be made between radical and incrementally new products. A radical innovation is characterized by a discontinuity within the industry and advances by an order of magnitude the technological state-of-the-art which characterizes the industry (Anderson and Tushman, 1991; Chandy and Tellis, 2000; Gatignon and Quereb, 1997; Henderson, 1993). An incremental innovation represents a logical extension to existing knowledge by introducing refinements or extensions of established designs that results in substantial increased value for the customers (Ali, 1994; Banbury and Mitchell, 1995; Dewar and Dutton, 1986; Henderson, 1993). Debruyne et al. (2002) designed a questionnaire to measure this variable, see appendix 4.

Marketing effort: The greater the amount of marketing resources a firm invests in the

Troy and Bharadwaj, 1995). Marketing efforts for the new product accelerate the diffusion process, and speed up the adoption rate of the new product (Frambach, Barkema, Nooteboom and Wedel, 1998; Robbertson and Gatignon, 1986). At the introduction of a new product innovating firms must allocate substantive resources to the communication of the product innovation (Gatignon, et al., 1990). It is not only enhancing the visibility of the new product towards customers, but also towards (potential) competitors (Debruyne, et al., 2002). The product launch that is highly visible will be perceived by competitors as an important issue, by which they need to take immediate action (Dutton and Duncan, 1987). Debruyne et al. (2002) designed a questionnaire to measure these variables, see appendix 5.

Targeting strategy: The targeting strategy a firm employs for a new product determines the

number and identity of competitors that are directly affected by the new product launch (Debruyne, et al., 2002). There are different targeting strategies a firm can employ. If the firm employs a selective strategy, it selects multiple market segments. For each market segment selected, the firm customizes its marketing activities and therefore clearly attacks the competitors in that segment. As a consequence, such a strategy directly threatens multiple competitors and thus has a large scope (Chen, Smith and Grimm, 1992). A firm that employs an undifferentiated targeting strategy targets the whole market with the same product and marketing mix. Consequently this strategy possesses a wide scope, but none of the competitors is directly affected to a very great extent (Smith, Grimm and Gannon, 1992). Finally, the firm can employ a niche strategy, which is specially designed to satisfy a particular customer group whose needs may be insufficiently addressed by other competitors (Porter, 1980). The niche strategy deliberately selects those market segments where rivalry is low, partly because larger competitors are not interested (Debruyne, et al., 2002). Debruyne et al. (2002) designed a questionnaire to measure this variable, see appendix 6.

2.3.4 Strategic launch decisions

research is on the strategic launch decisions, therefore tactical and/or operational decisions will not be elaborated.

According to Biggadike (1979), Crawford (1984), and Hultink, Griffin, Robben and Hart (1998) the strategic launch variables can be categorized into three groups. 1. Those describing the product strategy. 2. Those describing the market strategy as it pertain to the project. 3. Those describing firms overall strategy which influence project selection. So the strategic launch decisions encompass elements of the project’s product strategy, market strategy and firm strategy, also addressed as the what, where, when and why to launch questions. Aspects related to product strategy are the project’s technological roots (Cooper and Kleinschmidt, 1987), degree of innovativeness (Biggadike, 1979; Hultink and Robben, 1995), and time to market (Clark and Fujimoto, 1991). Aspects related to the market strategy include the breadth of the target market (Biggadike, 1979; Lambkin, 1988), market growth rate (Biggadike, 1979; Yoon and Lilien, 1985), and the stage of the product life cycle (Biggadike, 1979; Yoon and Lilien, 1985). Regarding the firm strategy the aspects related include the product development driver, whether the new product is market- or technology-driven or a combination (Griffin, 1995), the objectives for the new product’s launch (Mahajan and Wind, 1992), and the innovation strategy of the firm (Choffray and Lilien, 1984; Green and Ryans, 1990; Lambkin, 1988). Appendix 7 shows these variables and items used in Hultink et al. (1998).

Some of these items are overlapping with the variables and items used in this research. Therefore product strategy will be measured with the item product newness (appendix 4). This covers innovativeness, improvement and newness. Cycle time will not be measured because in this research the strategy for the acoustic office products will be researched. Time is a decision Voortman has to make when starting the introduction of the product. Market strategy is measured with the targeting strategy (appendix 6) and with the management characteristic competition characteristics of the strategic supply chain typology. The item stage of the market will be measure, this can be found in appendix 7. The firm strategy will be measured with NPD driver, see appendix 7. The strategy can be measured with the strategic supply chain typology.

way to sell them. Their current network is not sufficient enough to sell the product. This brings us to the answer of the why to launch question. Voortman developed products for their current target market, the dealer network, however this network cannot sell the product is a sufficient way.

Concerning the where to launch question there are three possible answers based on the current situation. This is the situation where the target market is the dealer network, as explained in the introduction.

 Direct market approach: own advice and selling organisation. The launch is coordinated with an own organisation and so the target market. The current dealer network is not used to sell the acoustic products, an own selling network will be developed where the knowledge and knowhow is present and so value created for the customer. The position in the supply chain needs to be build up.

 Supplier approach: working together with the current selectors. The launch is coordinated with the current suppliers and so the target market is the one of the current suppliers. The current network is used to sell the acoustic products, knowledge and knowhow needs to be shared with them. This knowledge needs to be collected through the own advice organisation and this value needs to be shared with customers through the existing dealer network. The position in the supply chain in still low.

 Delivery to customer in consultation or collaboration with an acoustic advice organisation. The launch is coordinated with an organisation specialised in acoustics, the target market is also coordinated with this organisation. The current dealer network is not used to sell the acoustic products, the knowledge and knowhow is present due to the collaboration. The advice organisation can create value for the customer and help Voortman with their position in the supply chain.

2.3.5 Conclusion

2.4 Conceptual Model

The conceptual model, figure 3, shows the relations between the different concepts. This model fits the theory explained above. The arrows between the concepts show how they are related. Supply chain (block 1) theory in the input for the current (supply chain) situation (block 4) and the supply chain of acoustic office products (block 5). Both block 4 and 5 influence the strategy of launching acoustic office products. The selection system (block 2) also influences the strategy for launching acoustic office products. The same holds true for the strategic choice, block 3.

3. Research Design

In consultation with Voortman it is decided to give the block of supply chain in the conceptual model no concrete implementation. This means that the three measurement pillars will not be executed. The reason for this is because the theory of supply chain is emphasised on the current supply chain of a firm. The emphasis of this research is on the supply chain of acoustic office products. Although the theory is elaborated, it can give insight in what is covered in a supply chain. Nevertheless it can be advised to Voortman to execute the three measurement pillars after this research, for the market of acoustic office products.

3.1 Respondents

The respondents in this research are linked to the blocks in the conceptual model.

Information about block 2 and 3 is collected at the respondents Ger de Hek, Mick Wiskamp, Ellen Pappenheim, Mercedes Vonk, Dan Kouwenhoven and Bas van Meurs. Ellen Pappenheim, Mercedes Vonk and Bas van Meurs also give information about block 5. Information about block 4 is collected at the respondents Frank Lambalk and Sjaak Lambalk.

Frank Lambalk (male) and Sjaak Lambalk (male) are the owners of Voortman Kantoormeubelen BV. Ger de Hek (male) and Mick Wiskamp (male) are sales/account managers at Voortman. Voortman is described in the Introduction. Ellen Pappenheim (female) is a senior sales manager at FacilityLinq. This company is a dealer, selector, in the market. Mercedes Vonk (female) is a senior sales manager at De Projectinrichter. This company is a dealer, selector, in the market. Dan Kouwenhoven (male) is the owner of De Kantoorcentrale, and a selector in the market. De Kantoorcentrale is a traditional office supplier and not a dealer. Bas van Meurs (male) is a sales manager at Pfleiderer. This company sells sheet materials to, inter alia, producers of office furniture. This can be used, for example, as a sheet for the writing desk.

3.2 Data gathering

the characteristics of the typology of the value-added – chain relationship position model. Question 2.a. is related to product newness, question 2.b. to marketing effort, and question 2.c. to targeting strategy and question 2.d to the launch strategy.

The interviews were conducted in the period Augustus till October 2013. The interview takes place between the respondent and Marijke de Jong, at the office of the respondent. During the interview with Bas van Meurs and Ellen Pappenheim, Frank Lambalk was also present.

3.3 Data analyses

To make conclusion out of the collected data the next steps are taken. First the data and information collected during the interviews will be written, next it will be organised. Organising the data means placing the right information in the conceptual model in the right blocks. This is written down per interview and can be found in appendix 9. After doing this for all the interviews, the next step is to make conclusion out of the collected data. These conclusions are made per block and can be found in chapter 4. Results. The different answers at each question are set in an overview, to make the different answers per respondent clear. By comparing these answers and the arguments of the respondents and looking for similarities and differences, conclusion can be made per concept/block and about their influence on block 6, the launching strategy.

3.4 Validity/Reliability

Validity

The validity is ensured through using variables and items to measure the concept, that are tested. These items are validated in scientific articles. Validity can be influenced by the translation of the questions into Dutch. Because a qualitative research method is used, selectivity can be a problem.

Reliability

The reliability of this research can be influenced by the subjectivity of the researcher. This is reinforced by the qualitative way of collecting data. To control the subjectivity when collecting data conclusion are formulated and checked at the respondent many times during the interview. This is to make sure the interviewee understands the respondent is the right way, and ask for a confirmation of the collected data.

4. Results

In this chapter the results of each block are given based on the data collected during the interviews, see appendix 9.

Block 2 Selection system

The questions used to measure this data can be found in appendix 8. The data collected during the interviews is shown in table 1. This is based on the answers of the respondents, shown in appendix 9.

Respondent Value is determined by:

Bas van Meurs The sales manager of Pfleiderer determines value and the producer that uses the sheet material determines value for the product.

Ellen Pappenheim The sales manager determines value for the customer. However when the architect is present in the process, he determines value for the customer.

Mick Wiskamp Basic products: the customer determines value itself. Other products the sales manager determines value, or the dealer for the customer. Ger de Hek The value is determined by the applicability of the product, so product

level. On other side the value is determined by the experience, knowledge and expertise in the field of furnishing.

Dan Kouwenhoven The account/sales manager or the customer itself determines the value. Customer finds more information of the web, and knows in advance where it is looking for. When the customer does not has the knowledge the advice of the manager determines the value.

Mercedes Vonk Value is determined by the expertise of the sales manager, through selling knowledge and thinking alone, like alternatives. On the other side the value is determined by the brand the product belongs to. Table 1 Selection system

Next the three dimensions described in block 2 will be filled in. The questions used in the interviews to collect this data can be found in appendix 8.

Before-selection dimension

The data collected during the interviews is shown in table 2. At the before-selection dimension value is determined by the capacity of a resource to allow an organisation to either effectively enter a particular product selection system as one of the selected or prevent its rivals from doing so.

Respondent Resource(s) before selection

Bas van Meurs Relieve customers, this means the sales manager thinks along with the customer with colour and material choice. Also sending/bringing samples to them.

Ellen Pappenheim To create favour at your customers.

Mick Wiskamp Think alone with the dealer, develop direction in this relationship. Ger de Hek Relieve the dealer; think alone with the dealer in a project, and indicate

new customers, instead of sending it per mail-order.

Mercedes Vonk The website of De Projectinrichter, this is the complete catalogue online. Offering fast service and reaction to customers. Being up to date about the product.

Table 2 Selection system - before selection In-selection dimension

The data collected during the interviews is shown in table 3. At the in-selection dimension value is determined by the capacity of a resource to create product characteristics that have value according to product selectors.

Respondent Resource(s) in-selection

Bas van Meurs Industrial customers: speed of delivery and size of sheets used in production.

Architect: be present and think alone with the architect.

Ellen Pappenheim By asking and telingl what the exact problem is. She thinks alone with the customer as much as possible. She shows her knowledge to the customer.

Mick Wiskamp Thinking alone with the customer in a fast way. Trust. Back office of Voortman

Ger de Hek Doing what you tell the customer, and promise what you do. Providing clarity and thinking alone with the dealer is important.

Dan Kouwenhoven Fast delivery, due to the business partnership with Staples. Fast service.

Mercedes Vonk Acting and reacting fast. Following up appointments. Mercedes own character, so the way she does business.

Table 3 Selection system - in-selection After-selection dimension

The data collected during the interviews is shown in table 4. At the after-selection dimension value is determined by the capacity of a resource to allow an organisation to either engage in competitive imitation of the product characteristics that have value according to product selectors or prevent its rivals from doing so.

Respondent Resource(s) after selection

Bas van Meurs Stable supplier, one of the biggest in the Benelux. Pfleiderer positions their distribution channel strategically. CSR is important in the management of Pfleiderer.

Ellen Pappenheim Large network of suppliers, thus can act brand independent. FacilitylinQ becomes more and more present in the early stages of the process. Ellen’s personal network, build up during working for different employers.

Mick Wiskamp Regularly contact with the dealers. Thinking alone, and sharing knowledge and experiences.

Ger de Hek Ger his network, build up during working for different employers. It is important to not disappoint the customers.

Dan Kouwenhoven Turning the customer relationship into a long term relationship. Business partnership with Staples. Offering unique products.

Table 4 Selection system - after-selection

Block 3 Strategic choice

The different strategic supply chain types the respondent identified for their company are shown in table 5. The characteristics used to describe the four types, and the answers the respondents give to describe these characteristics are shown in table 6. Table 6 is based on appendix 9.

Respondent: Firm: Type:

Bas van Meurs Pfleiderer Coordination

Ellen Pappenheim FacilitylinQ Innovation

Mick Wiskamp Voortman Coordination and Collaboration

Ger de Hek Voortman Coordination and Collaboration

Dan Kouwenhoven De Kantoorcentrale Collaboration

Mercedes Vonk De Projectinrichter Innovation

Table 5 Strategic supply chain typology

Bas van

Meurs Ellen Pappenheim Mick Wiskamp Ger de Hek Dan Kouwenhoven Mercedes Vonk

Competition charac-teristics Strong position in market, low competition Competition is present due to economic circumstances; however Facilitylinq is leader in the market. High competition, a lot offer the same product and demand is shrinking Competition is high, important to show the value added through the product Competition is high, the difference can be made with offering service Competition is high, Projectinrich ter doesn’t focus on this. The long-term is more important Position in

supply chain Pfleiderer is an

intermediar y in the market Facilitylinq is a dominant player in the market due to their way of doing business Manufacturer in the chain, want to differ themselves Voortman is a reliable partner Low negotiation power. And business partner of Staples Dealer, so strong negotiation power. External relationship pattern Long-term and stable relationship s with customers Cooperation with customers/ intermediary Product modifications, hard to come with something new Listen well to customers Tight, with business partner and suppliers Being up to date with all suppliers and their products

Firm

capabilities Product improvemen

t (CSR)

Following trends in the market

Product

modificaties Product modificaties Adapt and sell product range to demand of the customer Selling and offering products through the internet. Manage-ment process focus Operating at all markets with their own specific goals.

Act quickly, not

cheap(er) Demand and desire of

customer Sell the product to the dealer in a way that fits Voortman Stay up to date with developments in the market Growth and stability