Case study Analysis Essay Example | Topics and Well Written Essays - 2000 words

Case study Analysis - Essay Example This approach is associated with mass production, in which goods are produced and stored in warehouses and stocked by suppliers with the anticipation of increased prices. The first major difference between BTO and BTS is the specialization. Derived from the definition, BTO is founded on the needs of the customer, meaning that the products are developed to suit individual customer wants. Following the consumer placing an order with included specializations, the manufacturer engages in the production of the placed request. In BTS, the customer has little influence over the manufacture as well as specialization of the product. The product is developed to meet the market demand, and specialization of the product design is within manufacturers. BTO is more suited to individual needs and has a higher production cost footed by the consumer while BTS is more focused towards mass production thereby lowering the production cost. Inventory demand is different for both BTS and BTO approaches. The inventory in the BTO case is eliminated via committing the consumer to a product as opposed to accumulation of inventory by the BTS approach. The consumer has their product developed as per specifications provided in the BTO approach, meaning that the materials used are specific to the placed order. In addition, the inventory of the producer is comprised of partially and wholly sold products. BTS concentrates on increasing the amount of inventory, with the intention of meeting the demand in the market, and often engage in a lot of marketing and promotions to ensure the sale of the products. The market is faced with a low supply where BTO is involved, meaning that the customer cannot walk into a store and acquire a product immediately. Since orders are taken individually and filled to meet the customer’s needs, there is no product readily available for a free market. This concept may mean a loss in profits and employment as well