¶ … John in his situation are differentiation, cost leadership, and response. In marketing and economics, differentiation is distinguishing a service/product from others. John has issues with service that makes his customers deter to his competitors. By making John's service more attractive to his customers, differentiation takes place. John wishes to outsource some of the business' customer service to a company in India. This costs less than it would if he hired American employees and would allow him to gain additional support in the area of customer service.
Michael Porter developed the concept of cost leadership that has become a main business strategy. Cost leadership describes a means of establishing competitive advantage. By operating at the lowest cost within the industry, John adopts the cost leadership strategy. Taking his business to a foreign country that employs workers at a lower rate enables John to take his resources and divert it to other processes. The customers receive the attention and support they need and John saves money. His business remains a competitor and everything remains stable, allowing John to expand his business and have a higher likelihood of making more money.
An excellent example of cost leadership is Walmart. "The firm is a master at using
Customer Management Description of the Business I am going to work with a chain of sandwich shops specializing in banh mi. The concept is simple -- banh mi is a Vietnamese sandwich on a baguette. They are usually quite affordable, often coming in a price point lower than the big sandwich chains. The name of the chain is going to be Uncle Ho's Banh Mi, with a tongue-in-cheek Uncle Ho as the
While this approach has been implemented by most of the economic agents, British retailer Marks and Spencer argues that the economic crisis is no excuse for the business institutions to postpone their green initiatives. They as such invested £200 million in their own ethical campaign, and they now implement it, while in the same time, criticizing other companies for having renounced their initiatives in the wake of the economic crisis.
Customer service is a fundamental service that a business should provide in order to increase sales and have a returning clientele. Customer service thus becomes a very important facet of a good business and of growing profits. In this paper various questions will be analyzed, such as what good customer service actually means, and what defines such service. A company will further be selected, and will be analyzed from the
From a performance analysis perspective, costs of alternative support channels are first evaluated, followed by the key performance indicators (KPIs) typically used in financial services organizations to measure the performance of their online initiatives, most notably, websites. Following this discussion of performance analysis there is an analysis of resource availability and allocation of resources. Performance Analysis From a cost-per-incident analysis, the following table presents findings from Forrester Research specifically in measuring
(Setting and Measuring Service Standards) The store then appointed supervisors to ensure that all employees were following the procedures properly and even used 'mystery shoppers 'to find out if all the measures were being implemented, and the reports showed that they were indeed being followed, about 90% of the time. Subsequently, the management of the Revco Drug Store measured the number of complaints, to find out whether there had been
Customer Service Effectiveness of Employee Training Programs in Customer/Employee Satisfaction and Increased Profitability Customer service is an important part of keeping a business profitable. However, in a changing business and cultural environment, it is difficult to ascertain exactly what values or features will accomplish that mission. This research attempts to identify the new aspects of the customer service-profitability equation and describe a model for effective use of employee training in creating both
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