With the strong position that the company is in compared to some of its previous years, I believe this strategy to be financially sound. The PS4 is one of, if not, the most profitable product / service that Sony retails, and is only going to get better. Now with the complexity of this plan compared to my first strategy, the forecasted timespan to fully employ this tactic should be between 2 – 3 years. A major upside to making the PS4 the focal point of Sony’s operations is the new amount of growth it is going to experience. Focusing more resources on expanding the capability of their gaming console will hopefully allow for it to penetrate new markets, allowing for more growth, and obtaining new amounts of profit. Chiesi Pharmaceutical, a European pharmaceutical company that operates globally, set out to improve some of their key objectives by approaching their S&OP such as product launches, changes and availability, design and implementation, and synchronizing supply and demand (Padilla 2009). As a result, some benefits that arose from this newly appointed enactment including a reduced risk of stock outs, reduced inventory levels by 15%, better sales plan visibility (quicker responsiveness), increased forecast accuracy by 22%, and an improved MAPE by 30% (Padilla 2009). Having these goals and strategies all aligned together not only provides clarity throughout the supply chain, but also saves money & resources while making procedures more efficient as a
With the strong position that the company is in compared to some of its previous years, I believe this strategy to be financially sound. The PS4 is one of, if not, the most profitable product / service that Sony retails, and is only going to get better. Now with the complexity of this plan compared to my first strategy, the forecasted timespan to fully employ this tactic should be between 2 – 3 years. A major upside to making the PS4 the focal point of Sony’s operations is the new amount of growth it is going to experience. Focusing more resources on expanding the capability of their gaming console will hopefully allow for it to penetrate new markets, allowing for more growth, and obtaining new amounts of profit. Chiesi Pharmaceutical, a European pharmaceutical company that operates globally, set out to improve some of their key objectives by approaching their S&OP such as product launches, changes and availability, design and implementation, and synchronizing supply and demand (Padilla 2009). As a result, some benefits that arose from this newly appointed enactment including a reduced risk of stock outs, reduced inventory levels by 15%, better sales plan visibility (quicker responsiveness), increased forecast accuracy by 22%, and an improved MAPE by 30% (Padilla 2009). Having these goals and strategies all aligned together not only provides clarity throughout the supply chain, but also saves money & resources while making procedures more efficient as a