Operations strategies in Apple, Walmart, Amazon, and Kellogg

Operations Strategies

Examples of Six Strategies in Operations Management

Design Flexibility

Several years ago, shortly after the Apple iPod was introduced and had become all the rage, the product went through several rapid iterations, including splits to several versions of the device being available at the same time. Product design has been and continues to be instrumental to Apple's success, in general and with the iPod specifically (Tunbridge 2008). Their ability to rapidly introduce several models and upgrades of the iPod reflects an operations system that relies on an ability to adapt and develop quickly -- in short, a system that ensures design flexibility. Apple utilizes this flexibility to diversify markets and to maintain an image of always being one step ahead of the competition in developing new products (Tunbridge 2008).

Low costs

No name is more synonymous with low costs in the United States than Wal-Mart. Wal-Mart has forced entire industries to lower costs of production to meet their demands by implementing similar measures in the factories they contract with directly (Alagse 2009). Their success in the manufacture of shaving razors is standard of their typical practice; incremental process improvements were emphasized rather than developments in product design, leading to more efficient processes and thus reduced costs (Alagse 2009). The application of this operations strategy lowered costs to the point that Gillete was forced into a sale to avoid bankruptcy, and its broader application in other industries has made Wal-Mart the far and away most successful retail chain in the world, accounting for on third of all retails sales in the U.S. By some measures.

Quality

One company with a consistent track record for quality that has let them grow into one of the largest food suppliers in the world is Kellogg. From their cereal to their numerous other brands such as Morningstar Farms, Kashi, and Keebler, Kellogg delivers many products that have remain unchanged for years, providing a conformed an high quality product tat meets consumer expectations. Their decision to pull peanut-containing products from shelves during the salmonella scare last year reflects not only good business sense, but also their commitment to quality; at the time of the recall, not a single case had been linked to Kellogg's products (Hoaks 2008).

After Sales Service

Auto manufacturers -- especially American ones -- have come under a lot of deserved fire recently for certain failed business strategies, but GM's warranty has always been well viewed by consumers and has only increased in the scope and depth of its coverage in the past few months (GM 2009). In addition to the standard 100,000-mile powertrain warranty and complimentary roadside assistance already offered by GM, their new sixty day satisfaction guarantee allows consumer to give back or trade in any GM car purchased (GM 2009). This type of after-sales service might not be enough to pull GM quickly out of the whole it feel into along with the other in the Big Three, but it is certainly an effective strategy to start out with.

Broad Product Line

Johnson & Johnson is the behemoth of the healthcare industry; in addition to their JNJ products they also own Listerine, Tylenol, Neutrogena, and other well-known brands. It is the diversity of their products within this retail area that has in part led to their success, as the costs of developing new pharmaceuticals, which represent a large chunk of JNJ's revenue, is something that the company can withstand due to revenue form its many other products (Gaudet 2009). When pharmaceuticals go off patent, revenue drops dramatically, and it is the broad base of JNJ's product line -- as well as their ability to develop and introduce new products -- the keeps the company strong (Gaudet 2009).