Arrow Electronics Case
Essay by lsbhome • November 4, 2012 • Essay • 346 Words (2 Pages) • 1,971 Views
1. What is Arrow's business model? What value does it add for its suppliers? What value does it provide its customers?
The Arrow 's business model anchored on creating demand by helping customers ``engineer end products to which suppliers ' chips were integral (p . 5 . This partnership based model between Arrow , their suppliers , and their customer was quite unique in the sense that Arrows is willing to invest resources in a customer 's project in order to create business opportunity . The Arrow 's business model certainly adds value for its suppliers and customers through the assurance that their products are in good hands . Arrows recognizes that suppliers want their product get into the hands of the right customers , and their effort ``to know our customers well enough (p . 6 ) to create demands for their suppliers was an important initiative that adds value to their suppliers . The value that it provides with its customers is not in the form of bonuses but value added services through their field sales representatives (FSRs ) working with them ``to learn about current projects and explain and promote new products being introduced by Arrow 's supplier (p . 7 . These FSRs establishes relationship with clients , resolve problems relating to the flow of orders and deliveries , which in effect , establishes values with the customers .
2. How does Express affect Arrow's business model and its selling effort? Will Arrow be able to keep its margins above 15%--the objective set by Steve Kaufman?
Positive
Express affect the Arrows sales force in both positive and negative way . The positive way is that Arrow will not have the difficulty looking for customers as potential customers can just shop at the internet for distributor that can offer them good price .
The negative effect is that their relations with their suppliers might be affected . In this case , the Arrow must carefully weigh its decision . However , in their analysis , it appears that Express will affect their sales force positively rather than negatively .
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