The consumer may ask more service, such as a more clean or new car, this will increase zipcar’s cost. Bargaining power of suppliers: Many buyers of automotive suppliers, so that each individual buyer is unlikely to become an important customer for party. Zipcar is also no exception. So suppliers will not provide a lower price. Intensity of competitive rivalry: Competitors offer almost the same product or service, such as henz, AVIS ,users switching costs are low; a strategic action, if successful, their income is considerable.
GES sales department and Customers are dissatisfied with the current processing time for loan applications by GF. Problem statement & Objective GF Loan application processing and is sub optimal with its inefficient resources utilization and is unable to commit to meet GEC’s objective of promising its customers “10 business days or less” processing time for loan approval. The objective of this case study is to analyze and recommend optimal loan approval process for GF analyzing capacity and bottlenecks in the system. Case Analysis and recommendations Current Model The above table summarizes the Average waiting time in the system (Ws*) based on the current model of processing the applications for each region. The applications processed in different regions take processing times in the system ranging from 15.29 to 37.23 days.
Judged by its revenues and valuation at that moment, it was the fastest-growing company in history. But as its board members had warned, it wasn’t ready for the spotlight!. 5. Suppose you think the market for group-based on-line coupons has great potential, and you desire to enter the competitive fray. What factors would you consider in deciding whether to become a Groupon competitor?
Many consumers where highly interested in owning the technology but was not familiar with the details of how it works. Robert Stephens jumped on the opportunity to capitalize on innovation and the fact that it brings constant change and new problems. 2. What changes in the purchasing patterns of (a) all consumers and (b) women made the acquisition of Geek Squad particularly important for Best Buy? (a) Best Buy had a very high return rate so a full service, house call entity allowed for a decrease of their return rates by 25% - 35%.
This becomes increasingly hard as fuel prices rise and the economy forces people to search for the most affordable travel. Having previously been established as an economically friendly airline could work to their advantage. • What specific tasks do you expect managers at Ryanair would be performing under each of the headings…? Planning- Forecasting the future trends of both the cost of flight, in particularly the price of fuel and
The company is “slashing prices up to 40% with to keep them that way year round” (Heller). With the decreasing price, J.C Penney could reach its customers’ expectation and is hopeful to invent its new brands to its market. Meanwhile, the company set the “best price” every month to offer customers more predictable pricing. According to Johnson, “customers will love shopping when it is convenient for them, rather than when it is expedient for us” (Johnson). Johnson, who ever built the world’s most powerful brands – Apple, considered from the angle of its customers to build up a
The larger expenses coming along with high quality and services render salespeople a disadvantage when talking to their clients for business. The standards of performance (SOP) set for extra compensation seem unrealistic, with 75% of salespeople earning no commission in the first half of 1992, and so conceivably, fail to motivate them. This makes the result control less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between employees’ and company’s objectives, but employees take for granted the law-required 10% profit sharing of the company’s income and so their motivational effect seems little.
PROBLEM STATEMENT Having proved successful, HubSpot has now reached crucial juncture, when in order to accelerate the growth rate and to increase their profitability, they need to decide: 1) which segment of their customers to target; 2) develop new pricing strategy; 3) determine whether they can still maintain their scale by using only inbound techniques or they will need to implement outbound techniques as well. SITUATION ANALYSIS Customers HubSpot’s customer base comprises of Owner Ollie (73%) and Marketer Mary (27%). | Pros | Cons | | Easy to sell to | Limited resources | Owner Ollie | Acquisition cost of 1000$ | High churn rate | | Simple sollutions | High macroeconomic risk | | Fast selling | Low revenue per customer | | Pros | Cons | | Higher revenue per customer | Harder to sell to | Marketer Mary | Lower churn rate | Acquisition cost of 5000$ | | More sophisticated analytics | Takes longer to sell to | | More resources | 2% CMS | For better understanding of the values that each of the segment represents, the Customer Lifetime Value (CLV) analysis is needed. | Owner Ollie | Marketer Mary | Acquisition Cost | 1000$ | 5000$ | Initial Fee | 500$ | 500$ | Current Revenue (per month) | 250$ | 500$ | Churn rate | 4,3% | 3,2% | Average lifetime(1/Churn rate) | 23,26 | 31,25 | CLV(Av. Lifetime x Cur.
Additionally, due to the limited competition as well as its ability to keep prices low, easyJet was able to successfully offer stable prices to its customers while ensuring sustainable levels of profitability. Sellers While the goal of easyJet was to offer cheaper air travelling options, it charged higher fares for routes that were frequently travelled. For example, the yield management system which was set up had higher fares if the particular flight was highly demanded, but at the same time still managed to remain competitive in comparison to conventional carriers. Substitutes In terms of alternatives to easyJet, the company faced competition from companies that offered a similar service of cheaper air travel. Each of them had their own strategy in place to keep their prices low and survive in the budge airline industry.
Even though the U.S. economy has been suffering greatly since mid 2000, Sara Lee has maintained market share in the core products that included foodservice, beverages, bakery items, body care, and household items. A current split of the company has been noticed and that may indicate a possible sale of its international business, leaving open rivals to finance an acquisition. The brand mix of similar products – unique brands – gives Sara Lee a strong competitive advantage over the competition with product effectiveness that reduces over all costs and drives up margins. Using a cross-mix strategy would remove the potential selling of one division or other, which would reassure investors that the company has a long-term strategy to maintain both the North America and International operations. The company is in a great cash position to develop long term strategies by using innovation, private labeling and marketing to generate new growth among other retail locations – reducing the overall dependency on Wal-Mart.