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Dakota Office Products Analysis

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Dakota Office Products Analysis
Dhara Rami
ACCT 442
Dr. Szendi
Date: November 2, 2014
Towson University
Dakota Office Products Case Analysis

Dakota Office Products Case Analysis
Introduction
Dakota Office Products (DOP) is a reseller and supplier of office products. DOP is a regional entity. It has institutional and commercial businesses as clients. DOP has a good loyalty and customer confidence from its client. In order to increase profitability, DOP started “Desk top” delivery for its loyal customers. In this service, DOP will use its own transport vehicles to deliver to the clients on his desk tops. This service will charge little premium for convenience. According to DOP, this service should increase company’s profitability.
SWOT Analysis
Strength
Customer loyalty
Technology adaptation
Value added services such as desk top deliveries
Excellent customer services
Weaknesses
Price sensitive market
Costing system
Operational budget has extra hidden cost
Opportunity
Encourage customer to order online
Implementing effective cost system
Threat
Bad economy
Manufacturers’’ distribution channel
Porter’s Five Forces
Supplier Power
Supplier don’t have bargaining power
Differentiation based on value added services
Buyer Power
Easy to switch supplier
High bargaining power
Threat of new entrant
Easy to enter
Low capital requirement
Threat of Substitution
Partial threat flown by electronic documents
Rivalry
Price sensitive

Problems
End of the year calculations done by general manager of DOP shows increase in cost and for the first time in company’s history company record a loss in its balance sheet. On deeper analysis of the operation, several problems are realized for rising cost. For example, comparison of two customers A and B who has same purchases on year 2000 but Customer A placed a large order and utilized company’s EDI (company’s website) for its order. On the other hand Customer B placed small quantity in each orders. As a result, Customer A placed 12 orders for $ 200000 for the
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