Strengthening enterprise competitiveness by synchronizing supply chain

Rimvydas Jasinavičius, Nerius Jasinavicius

Research output: Contribution to journalArticle

Abstract

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.
Original languageEnglish
Pages (from-to)341-347
JournalVerslas: teorija ir praktika
Volume12
Issue number4
DOIs
Publication statusPublished - 2011

Fingerprint

Supply chain
Enterprise competitiveness
Competitive advantage
Labour costs
Economies of scale
Competitors
Margin
Price war
Profitability
Economic viability
Profit
Producer prices

Keywords

  • Supply chain measurement
  • Competitive advantage
  • Textile producer
  • Customer need
  • Theory of constraints

Cite this

Strengthening enterprise competitiveness by synchronizing supply chain. / Jasinavičius, Rimvydas; Jasinavicius, Nerius.

In: Verslas: teorija ir praktika, Vol. 12, No. 4, 2011, p. 341-347.

Research output: Contribution to journalArticle

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