1. Which are the top three characteristics that customers expect from and SUV? Is the low price an advantage or a disadvantage? (Word Count: 41) • High Performance • Enhanced safety and stability • Multi Terrain The low pricing is an added advantage considering the customers reluctance to spend more. This can attract customer as they can pay less but get more than what the competition is giving them.
Threat of New Entrants is weak. Entry barriers are high because of the economy, significant experience-based cost advantages, other cost advantages held by industry members (e.g., access to inputs, favorable location), brand loyalty (which comes from membership and other services), strong network effects and high capital requirements. 5. Substitute Products or Services is moderate. Warehouse clubs like a magnet for customers and pulling them away from other traditional retail channels such as supermarkets, department stores, drugstores, office supply stores, consumer electronics etc… All three warehoused club rivals - Costco, Sam’s and BJ’s – have similar strategies: Low prices, low operating costs, geographic expansion – Costco; Sam’s Club concept is to sell merchandise at low profit margins, which means at low prices to members; and BJ’s offers brand-name merchandise at prices that were significantly lower than the prices found at retail, supermarkets, dept.
Porsche customers do not need recognition, information search and evaluation of alternatives. They make their purchase based on their wants, the brand and how the car is made. The cars unique and often dangerous characteristics and the brands appeal to a very narrow segment of financially successful people are some of the reasons Porsche’s customers are drawn into them. Porsche customers purchase their cars for pure enjoyment and they are not moved by the information but by feelings. 2.)
Unlike other ads of the time, “Volkswagen advertisements were like homework assignments; you have to spend time with them,” without a doubt the techniques used have successfully reached the target market’s attention (115). The Volkswagen consistent message helped the target market’s focus on the reliability of the car and its unique features not on the immaterial things. The advertisement reached the target market on a rational level because the main focus of the Volkswagen was not too necessarily to keep in style with the times, but to make a better car
Minit-Lube’s approach to these 10 decisions includes: Product Design: A narrow product strategy could be defined as “lubricating automobiles” that allows the subsequent development of more focused and efficient operations (more in Chapter 5). Quality Strategy: Because of limited task variety, high repetition, good training, and good manuals, quality should be relatively easy to maintain. Process Strategy: The process strategy allows employees and capital investment to focus on doing this mission well, rather than trying to be a “general purpose” garage or gas station. Location Strategy: Facilities are usually located near residential areas. Layout Strategy: The three bays are designed specifically for lubrication and vacuuming tasks to minimize wasted movement on the part of the employees and to contribute to the speedier service.
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These findings suggest that a limited array of choice is superior to extensive choice in regard to satisfaction and ease of choice. The Effect of Limited and Extensive Options On Motivation, Satisfaction and Choice. Is there such thing as choice overload? Quite often in contemporary society, some of life’s more difficult decisions often come down to a trivial aspect, due to the extensive amount of choice provided. For example as Hugh McKay (2008) suggests, when choosing a car, for example a Holden Commodore and a Ford Falcon, often the choice comes down to something quite trivial such as the cup holder (2008, as cited in Multiple Choice, Episode 1, ABC).
Therefore, customers gain the benefits of private cars without carrying high cost of ownership or renting through access to a fleet of vehicles on demand basis. By the year 2005, Zipcar had the largest membership base, and the only main competitor in the car-sharing business was Seattle-based Flexcar. (fer) Besides the car-sharing service, Zipcar major competitors were rental agencies who provided similar services, and some others as taxi cabs and public transportation. So, buyer power is quite strong, since consumer may easily switch to another alternative. However, it is worth to mention that Zipcar had competitive advantage of providing flexible services and price policy to its members.
Inputs have little impact on costs High competition among suppliers This plays favorably for Oracle. Power of buyers: The enterprise software industry has gone through intense consolidation resulting in few larger vendors. Oracle being one of them has positioned itself favorably when it comes to buying power of customers. Some major factors include - Buyers require special customization Limited buyer information availability Product is important to customer Large
This allows customers from middle and lower class income earners, to benefit from their product. The company offers a wide range of products ranging from the smallest through to the luxury cars which makes it to capture a large market segment. In addition, the company has the largest revenue in India's automotive industry which gives it the strength to expand and implement its growth strategies. Furthermore, it has strength in its huge markets coupled with international growth strategies which are propelling the company to greater competitiveness. b) Weakness The automotive industries makes a lot of profit by selling luxury vehicles thus making Tata Motors to miss on the profit since most of its sales are of low cost vehicles which are either commercial or passenger.