Not sure if this is classified as a small business, however help would still be appreciated.

Any help and tips would be appreciated about what to write.

anyways, i’m a highschooler in my final year and I have a Business Studies task I need to complete. Usually I wouldn’t ask for help however, i genuinely am a little stuck soo here I am :).
Stimulus :

‘BTT’ Short for Bluetooth Tunes Pty Ltd is an Australian based designer and manufacturer of portable bluetooth speakers targeting users of portable technology such as phones and laptops that love music and appreciate quality sound in open spaces. One of the main selling points has been the quality and dependability of the product. The design has not changed in over 10 years, yet it remains very popular and well known.

The ‘Blue Box’ is a very popular product and the business has been operating since 2012 mainly serving domestic customers with only a small number of online orders from overseas. Market research indicates that there are opportunities to enter new foreign markets.

Recent price rises of ALL components used in production has resulted in the need to increase prices. The issue is that despite having the best quality speakers on the market, sales have declined due to cheaper competitor products made in China. There have also been advances in bluetooth technology giving greater range,more customisable settings and wider compatibility of devices to pair with.

The business is considering how they could move the manufacturing process overseas in order to overcome some of these challenges.

QUESTIONS
Outline the challenges that this business would face manufacturing overseas in regards to inputs.
Recommend TWO possible operations strategies this business could implement in regards to their plans for expansion
Discuss the balance between quality expectations and cost based competition in relation to the operations strategies

thanks once again

(inputs refers to transforming and transformed resources)

question 1 I have done language barrier and am writing about shipping times aswell
however question 2 and 3 is where I need the help in

thanks

  • PartyPanther2000@alien.topBEnglish
    1·
    10 months ago

    This is a really layered question.

    First the operations component. Keep it simple but that’s just how do you get from A-Z and if you’re sending stuff overseas you have two clear options: 1. Have them build the whole product, or 2. Have them build certain components and assemble it locally.

    There are pros and cons to either. For a real world example, all those companies that make scooters and bikes for bike share? Most of them contract with factories in China to make their stuff cheap because you can pay people absolutely garbage wages that you simply cannot pay in the US or Australia. Companies don’t send stuff overseas to be built because it’s their only option, it’s just way cheaper since you’re not paying for the same labor costs. Anyway, the stuff comes back to the US or wherever and they just pop the box open and start using it. That’s advantageous because you still have to pay for domestic labor. BUT, there are drawbacks like how long will it take? If you save a ton of money on manufacturing but have to spend that money locally trying to get it out the door, you messed up.

    As for the quality discussion? You get what you pay for. If you pay as little as possible for your product, don’t be surprised if it is kind of shit. I’ve seen bad welds, stripped screws, stuff not built to spec. It’s really common in the cheap mass-manufacturing factories. Part of it is these factories shift gears to build different things very quickly from time to time so you don’t have a team that has the institutional knowledge of the product PLUS if your quality control and design team can’t communicate effectively with the manufacturer that also makes it hard. Alternatively if you pay top dollar you can and should expect higher quality.

    Hopefully that gets you started. If you have follow ups post them but narrow your question down a bit to help us all out.

    • CompleteChart6576@alien.topOPBEnglish
      1·
      10 months ago

      First the operations component. Keep it simple but that’s just how do you get from A-Z and if you’re sending stuff overseas you have two clear options: 1. Have them build the whole product, or 2. Have them build certain components and assemble it locally.

      There are pros and cons to either. For a real world example, all those companies that make scooters and bikes for bike share? Most of them contract with factories in China to make their stuff cheap because you can pay people absolutely garbage wages that you simply cannot pay in the US or Australia. Companies don’t send stuff overseas to be built because it’s their only option, it’s just way cheaper since you’re not paying for the same labor costs. Anyway, the stuff comes back to the US or wherever and they just pop the box open and start using it. That’s advantageous because you still have to pay for domestic labor. BUT, there are drawbacks like how long will it take? If you save a ton of money on manufacturing but have to spend that money locally trying to get it out the door, you messed up.

      Thanks, This should get me started
      I will most likely post follow ups, but I will 100% narrow it down

      Genuine life saver, thank you!

  • Bob-Roman@alien.topBEnglish
    1·
    10 months ago

    I’d begin by revisiting the business model.

    10-year old product (mature), value proposition is quality and dependability.

    Sales are in decline due to competitor product that has lower price and offers better technology.

    Plan is to make current product for less overseas and then spend money to prospect foreign markets where company has only small online presence.

    Sounds like a potential train wreck to me.

    For example, is it possible to take 10 year product made in your country and retro-fit it with new technology given the overseas manufacturing process?

    Will domestic market (principal sales) accept product manufactured overseas rather than in their backyard?

    Will the spread or savings be great enough to offset potential supply chain disruptions (shipping)?

    Just because it cost less to offshore doesn’t necessarily mean it’s a good idea.

    Maybe money is better spent on R&D to design fresh product that builds on your company’s reputation for quality and dependability.

    • CompleteChart6576@alien.topOPBEnglish
      1·
      10 months ago

      could you maybe elaborate on the R&D bit?, I get the jist of it, but maybe a bit more depth would help me fully understand and answer the question :)

      • Bob-Roman@alien.topBEnglish
        1·
        10 months ago

        R&D means research and development of product or service.

        Some companies are vertically integrated. This means it owns most of the stages of its supply chain (i.e. automobile manufacturing).

        Part of auto maker’s value chain is R&D department. Its purpose is market research and design new and/or improved products to meet consumer trends.

        You have ten year old product that has been eclipsed by better technology and marketability (price).

        Good analogy is wireless ear buds and ear buds with wires.

        Ear buds with wires can be high quality and dependable.

        However, if target market is joggers, runners, or cyclists what would you rather take to market?

        It’s not that consumers no longer value quality and dependability. Losing sales suggests they now have desire for more value-added at lower price.

        Consequently, making it for less may not be the solution you are looking for.