Procurement and Contract Management
The presence of many options to select from makes the process of procurement a difficult one. The key aim of procurement is to get products and/ or services at the most favorable prices. In the case of Capital State Arena, there is the impending decision that will help to purchase an affordable console which will also provide the best services. Due to the lack of a unanimous decision, the purchasing officer needs to consider features of the companies in order to know which it can give a tender.
The two available routes for decision making are comparing market performance of companies; and allowing product consumers to make the ultimate decision. When the market performance is satisfactory, it is also likely that the consumers will choose a specific console for their use. The consumers are therefore in a better position to make a choice as they understand their needs well.
Electronic Theatre Controls (ETC) sell the most expensive consoles yet have the greatest market shares. This implies that the product qualities are most likely to be giving the company the competitive advantage they possess. When the customers i.e. theater departments are asked what their preference is, the response is that ETC is provide quality service and the consoles are also easier to use compared to other market brands.
Consequently, the choice is based more on service quality than on the cost of the consoles. To balance between the quality and the strand, the university settled for Strand 520 instead of obsession two. The former is $10,000 cheaper but has only 29 percent market share. This could mean low product quality. It is therefore advisable for the purchasing agent to go for obsession two in case there are sufficient funds for the purchase.
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