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Q&A: Sourcing
Why are contracts important in supply chain relationships? Give examples.
Q&A: Sourcing
What factors can the factory use to assess supplier performance? Elaborate each in 1-2 lines.
Q&A: Sourcing
Natural disasters such the Japan tsunami of 2011 can cause great disruptions in the supply chain. Read this article on how the supply chain of technology companies has been affected by this event (click here).
What steps can companies take to prevent such disruptions in supply chains?
Q&A: Information Goods
List the pros and cons of Netflix’s rental model (charging a fixed fee per month) to that of traditional offline video stores (charging a fee per DVD rental). Is it possible to replicate Netflix’s business model in other industries? Give some examples.
Hulu Case
MIS 3537
Internet and Supply Chains
Spring 2014
Due Date: March 25, 2014
Refer to the case “Hulu: An Evil Plot to Destroy the World” from the HBSP website.
Answer the following questions briefly (4-5 lines each):
1. Draw the supply chain for Hulu and highlight content acquisition and distribution. How do companies such as Hulu and Netflix use supply chain to compete strategically?
2. Research on the internet and list some examples of how companies such as Netflix and Hulu are controlling the supply chain of digital content acquisition and distribution.
3. How does TV Everywhere pose a threat to Hulu? Describe, in your words, how Hulu should respond?
4. The different broadcasters –CBS, NBC, ABC, Fox – have all chosen a different strategy to the internet. Which strategy is preferred?
5. Comment on how the digital channels put pressure on existing business models for firms in the creative industry (such as TV).
All groups (expect the group making the presentation) are required to submit a printout of their answers to the instructor at the beginning of the class. Also, be prepared to discuss the case in the class.
Q&A: information goods
Here are some youtube clips explaining the concept of software as a service (SaaS).
1. http://www.youtube.com/watch?v=kGUPSvswmY0
2. http://www.youtube.com/watch?v=EXS0BFS6QT4
Expalin in your own words the benefits and challenges of SaaS.
Q&A: will you pay for online news?
There has been an effort by media moguls (Rupert Murdoch, for one) to put “pay walls” on news site – this essentially means that consumers have to pay before they read a news article on the internet (click here for a related article). While the internet has created unprecedented distribution opportunities for newspapers, companies are still struggling with the proper revenue models to capitalize on.
What do you think? Will you pay for online content such as news? What is your recommendation to Rupert Murdoch on how to leverage the internet in the newspaper industry profitably?
High Fashion Looks to Employ the Netflix Model
Referring back to the case assignment about the Netflix business model; a subscription fee payment for unlimited movie rental delivered via mail-order, we had addressed the question of what other industries might be able to apply a similar business model.
Not the foremost contender, runway fashion designers are now looking to begin an attempt at this by way of Rent the Runway.
There is an article in the New York Times on the subject that you can take a look at if you are interested.
click here and select the first link
Q&A: Information goods
True or False (Give reasons (1-2 lines) in support of your answer)
The main difference between information goods and physical goods (such as televisions, laptops) is that the ratio of fixed costs to marginal costs is very high in information goods.
Dark Side of Direct Downloads
This article in Escapist Magazine, entitled the Dark Side of Direct Downloads presents an interesting example of just how much the supply chain for software and related industries has changed due to the internet.