Otisline Essay

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OTISLINE (A) - Case Study Background: Otis Elevator is a subsidiary of United Technologies Corporation and the world leader in elevator sales and service. Otis is organized into four geographic divisions, namely, North American, Latin American, Pacific Area and European Transcontinental. Otis gained market through quality, reliability and technological leadership in its products which were customized according to the buildings. Since the demand for elevators are cyclical coinciding with the building cycle, highly competitive elevator service markets were an important source of revenue. Mostly, the manufacturer was likely to keep the service contracts. Customers assessed the quality of an elevator company’s service by the responsiveness to callbacks. Many elevator service firms including Otis were using commercial answering services for non prime time callbacks but the quality of answering and the response time varied greatly. Hence Otis started investigating the feasibility of a centralized Customer Service Department and the concept of OTISLINE was developed. Referring to the McFarlan’s Strategic Grid (Fig.1), the decision to implement Otisline would a strategic one. Otisline is destined to change how Otis would do business as well as equip it competitive advantages that would change the landscape of elevator market both product and services. Figure 1: the McFarlan’s Strategic Grid Why do you think Otis management considered OTISLINE worth investing in? OTISLINE made OTIS Elevators self-dependent in terms of providing service post the installation of elevators. Currently Otis is dealing its customer service requests through commercial answering services which were often shared by different companies in small cities. Otisline would facilitate round the clock service and reduce callback time, giving Otis a competitive edge
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