The impact of covid-19 to supply chain management and logistics.

Sample Solution

The impact of covid-19 to supply chain management and logistics. The modern supply chain is an intricate spider web with threads spanning the globe, and COVID-19 arrived like a storm to punch significant holes through it. Like few things before it, COVID-19 had an immediate impact on the global supply chain and logistics market. In one swoop, the protections that made business viable, especially outsourced manufacturing and lean inventory operations, have taken industries out at the knees. COVID-19 pandemic has caused supply chain professionals to face the reality of something we`ve been aware of but rarely felt the impact: all supply chains are linked and global. The scale of these changes is significant, and it`s up to professionals to start looking beyond companies and manufacturers directly impacted. For example, wholesalers of medicine are at significant risk. India is the world`s leading provider of generic prescription drugs. However, 70% of its raw materials come from China, and some 33% come directly from the epicenter of the coronavirus outbreak.

used around the world. It had been announce recently that Internet address are to allow non Latin character as addresses, this means in future, Chinese character forming the web address is highly possible [Choe, 30 Oct 2009]. While the impact of this is still uncertain, but company that market target country using non-Latin character as language like China and Japan will definitely need to adapt to this change.

4.0 Industrial Analysis

4.1 Threat of new entrants

The airline industry require a huge capital investment, with at least millions of capital required before any business process, it is estimate that the company require approximately $1 of capital to generate $1 of revenue. It would require a lot of logistic works, highly skilled personal such as pilots, aircraft technicians and specialise managerial personnel which are often limited in resources in the industry. Limited access to airport and route are also another difficulty post to new entrant [Calingo. 1997] As the Asia Pacific region move toward free trade and deregulation of airspace, more opportunity are created. Since introduce by America Southwest Airlines in 1973, Low Cost Carrier (LCC) have gain popularity and proven to be profitable [Uherek, 2006]. Many new companies had been form to provide this service around the Asian region around 1990s, currently Asia region have over 60 of such LCC mainly offering short distance flight within same country. Some of these airlines have started to offer long haul budget airline, for example Air Asia had introduce Air Asia X in 2007 that offer flight from Malaysia to London, Australia and India [Kent, 5th Jan 2007]. Although these Low Cost Carrier (LCC) were not yet considered as a direct competition to SIA as the target market for these airlines is more for cost conscious traveller, it is possible that in not so distance future, these LLC will venture into the premium market sector when the company reach certain level of business expertise. This trend is highly possible and should not be overlooked by SIA in the long run. It would be safe to assume that the treat of new entrants are remains low at the moment.

4.2 Rivalry among existing firms