Tag Archives: risk

Risks associated with being a low cost operator

There are a number of risks associated with being a low cost operator. A cost leadership strategy may have the disadvantage of lower customer loyalty, as price-sensitive customers will switch between operators if they offer a better price. A reputation … Continue reading

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Why ‘servitised manufacturers’ have to think and act in new ways

As we have seen in previous blogs, the adoption of servitisation is widespread – across many industry sectors and across many countries. The key challenge of this strategy is that it requires manufacturers to think and act in different ways to the way … Continue reading

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The challenges of adopting a servitisation strategy

Manufacturers may find that adopting servitisation may lead to undesirable outcomes and be unsuccessfully implemented.   One the potential problems can be that suppliers take over responsibility for some aspect of a customer’s business and this exposes them to consequent risks. As … Continue reading

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The reasons why a firm adopts the servitisation strategy

There are three major rationales for manufacturers adopting this operations strategy – strategic, economic, and sustainability. In extending operations into the provision of services, manufacturing firms can achieve a number of strategic outcomes. First they can lock in customers. By … Continue reading

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The supply chain ‘ripple effect’

This infographic from Deloittes illustrates the ripple effect of risk in the supply chain.  Their report identifies that risk is increasing, but managers are failing to prepare for and manage this effectively.  

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