Question

S Problem 1. A key change in the business environment is increased consumer expectation for product functionality and quality. The result has been a shorter product life cycle, as firms seek to add new features and new products as quickly as possible, thereby increasing the overall intensity of competition. In past years, a business typically succeeded by focusing on only a relatively small number of products with limited features and by organizing production into long, low- cost, and high-volume production runs aided by assembly-line automation. The new business process focuses instead on customer satisfaction. Producing value for the customer changes the orientation of managers from low-cost production of large quantities to quality service, timeliness of delivery, and the ability to respond to the customer's desire for specific features. As part of the management team of a medium-sized business company, which is growing fast even it operated less than 5 years and its market share exponentially expanded every year. How will you describe your typical customer's needs and service expectations on different era? How does the increase firm's customer base be affected its ability to maintain this focus on the customer? If this dramatic growth continues, what are some specific actions your firm can take to retain its goal of "focus on the customer"

Answer 1

In order to retain the consumer in changing environment.

The company may use combination of different strategies to retain the consumer.

1. Differentiation strategy.

The differentiation strategy is used for group of customers who want unique features in product without considering price of the product.

This can be achieved by adding some features in product, increasing the capacity, change in design, using high quality material.

Examples: Convertible phone by Samsung and apple to high budget customers.

2. Cost leadership

The existing customers which are price sensitive for them company should be focus on giving quality/standard product at low price. In order to retain them

3. Other methods

In order to retain the existing customers the company should be focus on giving high quality after sale service, on time delivery, free shipment to high value customers, reward point system to increase the loyalty of customers, increase in warranty period etc.

In order to determine the need and expectations of the customers the company has conduct different surveys for product needs and also giving free sample of new product and receiving feedback of the same.

For Doing above function there must efficent marketing teams or company may outsource such function to professional firms after considering cost benefit analysis.

Increase in customer base will affect company's ability to focus on the needs of the customer for that purpose company should give existing teams training to cope with changing environment or hire new executives if needed.