Every business wants to understand its customers to serve them better and for the business to grow. There are many ways a company does this, one of them being the supply market segmentation, where you understand your supply positioning. This is also known as the supply positioning model.
The supply positioning model is a model proposed by Michael Porter, which attempts to explain the supplier’s position in the value chain.
One of the most influential business gurus of the last century, Michael Porter, is a Harvard Business School professor who has been publishing best-selling books since the late seventies and has been featured regularly in Harvard Business Review.
His Supply Chain Management paper is one of the most important business papers of the past decades and has been cited more than 25,000 times.
What is a Supply Positioning Model?
A supply positioning model is a tool that helps companies to analyze the market in terms of competitors and customers. This model allows us to understand what strategies could be used to improve the market position and make the right decisions.
The positioning of the supplier on the market can be done in several ways. It can be done by a company itself or by a team of experts. It is a company strategy that helps place the company’s brand in a specific market segment.
What are the advantages of the Supply Positioning Model?
When manufacturers are looking to take their product to market, the supply positioning model is one of the most important tools they can use to do so. Supply positioning is the strategy that is used to find the right combination of price, quality, and efficiency that will make the product attractive to consumers.
A supply positioning model is a marketing tool that allows a business to make decisions based on the past. It is used to identify the best-suited supplier with which to do business.
It helps to determine the best location to be in, the best way to reach customers, the best products to offer and the best pricing for the product. It also helps to determine the best time to offer the product. For example, if a product is seasonal, it would be best not to offer the product at all or to offer it to different areas of the country in different seasons.
Supply positioning is a strategic model adopted in the procurement department of an organization to ensure the continuous supply of a product or a set of products from various sources. The procurement department of an organization adopts the model to ensure the continuous supply of a product or a set of products from various sources.
It is a tool used by an organization’s supply chain to maintain a balance between the current market price of a product and the immediate purchase price of the product. The model also helps the organization decide the optimum inventory level to maintain and the level of inventory to be kept in raw form.