AvidXchange: Competition and Applied Operations Management Principles

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AvidXchange Analysis
Given the current technological advancements, companies seek digital transformations that would facilitate their success. AvidXchange is a global B2B software company that powers the digital transformation at thousands of companies worldwide. AvidXchange provides intelligent, integrated trading partners and supply chain solutions to enable its customers to more quickly and easily trade with each other, predict intrinsic value more accurately, and optimize returns on every inventory dollar. AvidXchange is facing a challenge of competition which has reduced its market share. The competition is from Coupa and Tipalti companies (Athey, Susan, and Michael, 27). This paper will focus on how AvidXchange is impacted by competition, the solutions to the problem, and the applied operations management principles.
AvidXchange is a global technology company whose products and services solve the B2B payment problem. It is founded on the belief that its customers' goals can only be achieved with strategic partners and connected supply chains. AvidXchange facilitates these connections through technology trusted by customers, partners, and suppliers globally. However, this has led to the company facing a lot of competition. Coupa and Tipalti have grown to become the major competitors for AvidXchange. Such competition has reduced AvidXchange's market share, thus reducing its profitability and growth rate. The technology provided by AvidXchange simplifies the daily business operations of the customer. AvidXchange trades data with trading partners effectively and efficiently. The company's technology also uses data to solve for intrinsic value. It also provides dynamic supply chain solutions that aid inventory forecasting and cost optimization by eliminating manual processes and data entry. AvidXchange uses a platform approach to service its customers, partners, and suppliers. The technologies used are Web services, cloud computing, high-performance computing, enterprise integration solution (EIS) on the exchange (EE), and advanced sourcing models (AMS) (Almeida, Fernando, José Duarte Santos, and José Augusto Monteiro, 100). Given the current technological advancements, many companies seek a software provider that would facilitate success and growth in such companies. As technology continues to change, companies require the best software in the market, contributing to the high competition facing AvidXchange.
Coupa and Tipalti are very competitive, and these companies continuously offer better services, which forces AvidXchange to find solutions for its issues of reduced profitability and growth rate. The technological advancements have led to new entrants in AvidXchange's market, thus challenging the market prices for these companies' software. This has also forced AvidXchange to lower its prices for its technology. This is illustrated by the fact that the cost of Coupa's technology is almost 50% less than what AvidXchange charges for its technology. A reduction in prices has highly affected AvidXchange growth rate, thus requiring the management team to implement solutions for beating the market comp...