Schm2301 Chapter2 Case
SCHM2301
Lingwen Chen
Otis Toy Trains Explores the Supply Chain：
JLPTC proposed that they wanted to work closely with the designers of the Otis Toy Trains and also wanted to take over most of the production of the past series. Although JLPTC offered 40-60 percent lower landed price, Otis also should consider the advantages and disadvantages. JLPTC will require a large amount of profit sharing about the products that they produced or the shareholding of the Otis.
There is a dangerous risk about JLPTC works closely with the Otis’s designers. When JLPTC learn to how to produce the past series of the trains, they will become the biggest competition of the Otis Toy Train Company after the cooperation. So, my recommendations are the designers should keep their design drawings as the secrets, and need staffs from Otis to manage the production line. And the finished product should be assembled in the Otis Toy Trains Company.
Steinway & Son Piano:
The most important problem is the loyalty of brand decreased, the customers started to doubt the quality of the pianos and there are actually problems about the pianos. Steinway should change the new production quotas and make sure that the woods are not pulled from conditioning rooms. The problems about quality can be solved now. Another problem is the style of the pianos, a classical pianist had to use a 30-year-old Steinway piano because he cannot find a new one he liked. Steinway should hire new designers to product some fashionable pianos and create a new style, then the customers will become interested in their new
Lingwen Chen
Otis Toy Trains Explores the Supply Chain：
JLPTC proposed that they wanted to work closely with the designers of the Otis Toy Trains and also wanted to take over most of the production of the past series. Although JLPTC offered 40-60 percent lower landed price, Otis also should consider the advantages and disadvantages. JLPTC will require a large amount of profit sharing about the products that they produced or the shareholding of the Otis.
There is a dangerous risk about JLPTC works closely with the Otis’s designers. When JLPTC learn to how to produce the past series of the trains, they will become the biggest competition of the Otis Toy Train Company after the cooperation. So, my recommendations are the designers should keep their design drawings as the secrets, and need staffs from Otis to manage the production line. And the finished product should be assembled in the Otis Toy Trains Company.
Steinway & Son Piano:
The most important problem is the loyalty of brand decreased, the customers started to doubt the quality of the pianos and there are actually problems about the pianos. Steinway should change the new production quotas and make sure that the woods are not pulled from conditioning rooms. The problems about quality can be solved now. Another problem is the style of the pianos, a classical pianist had to use a 30-year-old Steinway piano because he cannot find a new one he liked. Steinway should hire new designers to product some fashionable pianos and create a new style, then the customers will become interested in their new