Fsmi Case Study

For Sale Magnets Case Analysis Questions

[1]: Explain the nature of For-Sale Magnet’s product.

It is unique. FSMI is the only company producing this product in the market using magnets.

Given the characteristics of this product, what type of “supply chain” would be most appropriate?

It is affordable and can arguably advertise more effectively with increased visibility and can be used for long time without destroying.

Make-to-stock and continuous replenishment.  

[2]: What role should the availability (or lack thereof) of property rights protection (e.g., patents专利, trade secrets, etc.) play in shaping the competitive strategy that For Sale Magnets should pursue?

Patent protection was unobtainable. Legal experts believed that any serious challenge could nit be defended, and the cost of pursuing formal protection would be a bad investment. This would leave FIMI extremely vulnerable to exposing its product to distributor and manufactures.

[3]: What is the current supply chain structure that For Sale Magnets has? Be sure to include lead time information and the downstream distribution structure.

Currently,  FSMI’s supply chain has 4 major channels. To start, Marly places  an order with Star, a screen printing company out of Georgia. Because of their inability to screen print and package the material properly, the work in progress material is sent to Carson's Cartons out of San Diego, California.  At Carson's, the work in progress goods are packaged to preference then shipped to Eugene, Oregon for Marley to handle.  This manufacturing and distribution process takes anywhere from 6-8 weeks to complete. Currently Marly has been able to keep up with order fulfillment with her local customers but her product has increased in popularity as she noticed her products are flying off the shelves quicker at her local vendors.  

[4]: Should For-Sale magnets pursue the opportunity with ShopCo, Car Trader, both, or neither? Provide an in-depth explanation for your decision.

Partner business in CarTrader.com.

Although there is a long lead time, we have a general idea of how many people will be offered our product at checkout through the CarTrader Website

 CarTrader.com averages 20,000 customers each month who buy an online ad in order to sell their vehicles

[5]: Based on your answer to #4, recommend a strategy for For-Sale Magnets (e.g., domestic production, international production that is internally managed, international production that is externally managed, etc.). Provide detailed numerical calculations to support your decision.