Bsw Vertical Integration
I concur with you on the use of reverse osmosis and tapping into the endless supply of sea water. However, being that BSW identifies itself as a spring water company would put a noticeable dent on the brand and possibly, jeopardize their current price competitive advantage. Nevertheless, if BSW has that kind of latitude in decision-making, reverse osmosis would be a strategic move in terms of "product differentiation” which would involve considerable financial investment in research, innovation, and marketing to sustainably maintain a distinct product in the market (Daniela, 2014, p. 526). Also, the use sea water would enable Baltimore Spring Water to affect vertical integration by eliminating the supplier which may reduce cost as well as improve
production efficiency albeit contingent on the firm’s financial capabilities ("Vertical Integration," n.d.).
Therefore, there is a perceived trend that the costs for BSW would increase in both the above-mentioned instances which would seriously test the patience of BSW not to pass on those additional costs to their customers. I would suggest that before going that far, BSW should conduct a workflow analysis to determine the current performance of BSW business processes are affording the company both optimal and consistent production efficiency (Selvaggio, 2014). In a nutshell, I am advocating for is ensuring that all the processes associated with production of spring water by BSW which the managers have a greater chance of accomplishing in a relatively cost-effective manner as opposed to huge financial undertakings such as reverse osmosis and use of sea water.
References
Daniela, P. A. (2014). Competitive Advantage In The Enterprise Performance. The Journal of the Faculty of Economics - Economic, 1(1), 524-531. Retrieved from https://learn.umuc.edu/d2l/le/content/246564/Home
Selvaggio, L. (2014, May 21). Workflow Analysis: Improving Business with Greater Efficiency [Web log post]. Retrieved from https://blog.udemy.com/workflow-analysis/
Vertical Integration. (n.d.). In Investopedia. Retrieved September 3, 2017, from http://www.investopedia.com/terms/v/verticalintegration.asp
production efficiency albeit contingent on the firm’s financial capabilities ("Vertical Integration," n.d.).
Therefore, there is a perceived trend that the costs for BSW would increase in both the above-mentioned instances which would seriously test the patience of BSW not to pass on those additional costs to their customers. I would suggest that before going that far, BSW should conduct a workflow analysis to determine the current performance of BSW business processes are affording the company both optimal and consistent production efficiency (Selvaggio, 2014). In a nutshell, I am advocating for is ensuring that all the processes associated with production of spring water by BSW which the managers have a greater chance of accomplishing in a relatively cost-effective manner as opposed to huge financial undertakings such as reverse osmosis and use of sea water.
References
Daniela, P. A. (2014). Competitive Advantage In The Enterprise Performance. The Journal of the Faculty of Economics - Economic, 1(1), 524-531. Retrieved from https://learn.umuc.edu/d2l/le/content/246564/Home
Selvaggio, L. (2014, May 21). Workflow Analysis: Improving Business with Greater Efficiency [Web log post]. Retrieved from https://blog.udemy.com/workflow-analysis/
Vertical Integration. (n.d.). In Investopedia. Retrieved September 3, 2017, from http://www.investopedia.com/terms/v/verticalintegration.asp