Strategic Mgt Human Resources and Finance
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......Part 2: How sustainable is the competitive advantage created by their new strategy?
The sustainability of the competitive strategy created by their new business model is predicated on how quickly they align all customer-facing and channel-facing strategies in the outbound logistics, marketing & sales and after-sales service areas of their value chain. These are entirely new areas of operations for De Beers. Symptomatic of the extend to change required in these processes is the reliance on distributed order management systems that can integrate at the process and information systems levels with LVMH for example. There is also the requirement of having a more synchronized yet auditable procurement and supply chain series of processes in place. Initiating an approach of focusing more on creating value through fulfilling the unmet needs of channel partners, including ensuring the success of the LVMH joint venture will require De Beers to re-define their pricing strategies to be more focused on process costing and cost controls than has been in the case. In addition, the Inbound Logistics and Operations areas of the value chain will need to be more focused on inventory turns and efficiency of supply chain responsiveness to the needs of the channel partnerships
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