Spenncon Case Essay

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- Spenncon AS – Developing Marketing Strategy in the Construction Industry - 1 Problem Statement According to Tuli et al. (2007) the ultimate purpose of a solution is to address the customers business needs. Spenncon as a construction business has a big numbers of actors and different requires for different customers which make their future situation an ill-defined problem. Furthermore, they do not have very clear who is their customer. For this reason, is better to formulate the situation as a strategic problem. We will use the Collaborative Structure Inquire (CSI) and go through the symptoms to identify the main causes (Baer et al. 2012) (See Appendix 1.) After the analysis, we came up with the following problem statement: Optimal management of flexibility without reducing profitability. Value Proposition In order to solve the problem stated in the previous part, we aim at pointing out the value propositions for Spenncon, which could make the company more persuasive to customers. However, it is exceptionally difficult to find value propositions that resonate with all customers (Anderson 2006). Thus, we focus on suggesting how Spenncon could segment their customers and the value creation potential for each segment. In this case, we use resonating focus1, which points out one or two points of difference (and, perhaps, a point of parity) whose improvement will deliver the greatest value to the customer for the foreseeable future (Anderson 2006). In detail, Spenncon should segment their customers into 3 categories based on their sales activities instead of being based on average yearly turnover (which proved to be unsuccessful in the past). Segment 1: Biddings with precise specifications Bidding to get job is the nature of the industry so Spenncon should not ignore this segment, especially when it is stated that the company had good skills

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