The Chase Strategy
Chase StrategyCandice Wilson, Marisa Smith, Debra Jones, Stephanie Body, Kelsie HollandOPS 571June 1, 2015Rhonds GulletteChase StrategyIntroduction All companies engaged in marketing depend on some type of demand generation strategy. The fundamental principle of the chase strategy is to categorize the market that a firm intends to target and then create a profile of the possible buyers. In most cases, organizations compile a database of potential customers and then take concrete steps to get credible leads and then transform them into sales. The strategy is appropriate in situations where demand is unpredictable, and the company lacks an inventory. The chase strategy can be explained as creating equilibrium with the production and order rates of the company in hiring and temporarily firing employees. The key to this type of strategy is to have access to the individuals that were laid off as already trained employees when the rates begin to increase. This strategy is the best method in keeping a strong company alive by matching labor with order rates, however, is considered dangerous in its approach. The core advantages of the approach are reduced storage costs and enhanced capacity to respond to the needs of the customers. However, the procedure could result in inefficient use of capacity during periods of low demand, therefore raising the need to hire or lay off staff, and the possibility of the loss of quality. Hence, the chase strategy is appropriate for companies that can build an accurate database of leads based on a concise understanding of the target market.
There are multiple production planning strategies, the chase strategy is at the top of the list. While all of the strategies have their pros and cons, the chase strategy is rated highly. The terms pure and mixed will come in to play when using production planning, these terms mean that either one or multiple of the strategies are being used at any given time. Companies that use Chase StrategyBusinesses that operate in various fields can benefit from the chase strategy. For instance, businesses in the service industry have to ensure demand meets supply at all times. For example, the approach would be ideal for the Serena Hotels that have to ensure they have the services customers want at all times. Arguably, the meals have to be hot while the rooms have to be in a state acceptable to clients. Understandably, it is not easy to balance supply and demand in the service industry. In the same vein, Jetstar Airways have to ensure it has available seats whenever customers want to fly. For this reason, the airline has to guarantee clients service regardless of the prevailing market conditions.