Strengthening enterprise competitiveness by synchronizing supply chain

When competition is fierce and many producers try to create a competitive advantage by lowering prices, price wars are very common, but only few survive. Low prices erode producers’ margins and economic viability of the company. Low prices are very short- lived competitive advantage as it can be ea...

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Main Authors: Rimvydas Jasinavičius, Nerius Jasinavičius
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2011-11-01
Series:Business: Theory and Practice
Subjects:
TOC
Online Access:https://journals.vgtu.lt/index.php/BTP/article/view/8685
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spelling doaj-73165de11c574038ba325162aa7b0d7a2020-11-25T01:44:57ZengVilnius Gediminas Technical UniversityBusiness: Theory and Practice1648-06271822-42022011-11-01124Strengthening enterprise competitiveness by synchronizing supply chainRimvydas Jasinavičius0Nerius Jasinavičius1Mykolas Romeris University, Ateities g. 20, LT-08303 Vilnius, LithuaniaUAB „TOC sprendimai“, Totorių g. 30-3, LT-01121 Vilnius, Lithuania When competition is fierce and many producers try to create a competitive advantage by lowering prices, price wars are very common, but only few survive. Low prices erode producers’ margins and economic viability of the company. Low prices are very short- lived competitive advantage as it can be easily imitated by other competitors. Only producers with big economies of scale and low labour costs can afford very low sales prices. Eastern European producers have neither economies of scale nor low labour costs (comparing to Far East producers). This paper provides theoretical background and practical experience of how three Eastern European textile producers created significant competitive edge, which enabled them to increase their customer base more than three times. Profitability has increased by 4 times, and net-profit by 5 times. https://journals.vgtu.lt/index.php/BTP/article/view/8685supply chaincompetitive advantagetextile producercustomer needcompetitive advantageLEANTOC
collection DOAJ
language English
format Article
sources DOAJ
author Rimvydas Jasinavičius
Nerius Jasinavičius
spellingShingle Rimvydas Jasinavičius
Nerius Jasinavičius
Strengthening enterprise competitiveness by synchronizing supply chain
Business: Theory and Practice
supply chain
competitive advantage
textile producer
customer need
competitive advantageLEAN
TOC
author_facet Rimvydas Jasinavičius
Nerius Jasinavičius
author_sort Rimvydas Jasinavičius
title Strengthening enterprise competitiveness by synchronizing supply chain
title_short Strengthening enterprise competitiveness by synchronizing supply chain
title_full Strengthening enterprise competitiveness by synchronizing supply chain
title_fullStr Strengthening enterprise competitiveness by synchronizing supply chain
title_full_unstemmed Strengthening enterprise competitiveness by synchronizing supply chain
title_sort strengthening enterprise competitiveness by synchronizing supply chain
publisher Vilnius Gediminas Technical University
series Business: Theory and Practice
issn 1648-0627
1822-4202
publishDate 2011-11-01
description When competition is fierce and many producers try to create a competitive advantage by lowering prices, price wars are very common, but only few survive. Low prices erode producers’ margins and economic viability of the company. Low prices are very short- lived competitive advantage as it can be easily imitated by other competitors. Only producers with big economies of scale and low labour costs can afford very low sales prices. Eastern European producers have neither economies of scale nor low labour costs (comparing to Far East producers). This paper provides theoretical background and practical experience of how three Eastern European textile producers created significant competitive edge, which enabled them to increase their customer base more than three times. Profitability has increased by 4 times, and net-profit by 5 times.
topic supply chain
competitive advantage
textile producer
customer need
competitive advantageLEAN
TOC
url https://journals.vgtu.lt/index.php/BTP/article/view/8685
work_keys_str_mv AT rimvydasjasinavicius strengtheningenterprisecompetitivenessbysynchronizingsupplychain
AT neriusjasinavicius strengtheningenterprisecompetitivenessbysynchronizingsupplychain
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