1.0 INTRODUCTION
The competitive battlegrounds of differentiators are changing than ever before in today’s globalized world. Customers are now offered different types of products or services on a worldwide basis; as such the change in demands from the customer’s requirements has increased. By examining the evolving market trends, companies are moving towards various types of competitive differentiators. It is now clear that the core factors of competitive differentiation such as quality and functionality are no longer a sustainable competitive advantage driver, rather they have become the fundamentals to run a company in its sector.
With the help of growing technology, companies have adopted different types of computerized approaches like the
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The recent attention giving to customers wellbeing via customer’s experience is gaining importance in both academics and practitioners (e.g. Palmer, 2010; Schmitt, 2003; Voss et al, 2008). With such enthusiasm, a new management framework called Customer Experience Management (CEM) emerged to help increase a company’s differentiation capability.
CEM showcases a broader and more comprehensive approach when compared to other traditional marketing practices. CEM provides a systematic management of customer experiences in all key touchpoints of a company. This, in turn, enables the company to find and reduce the gaps between the customers’ expectations and the real customers experience at each identified key touchpoints (Meyer & Schwager, 2007). The successful implementation of CEM strategies can create delightful customer experiences which in turn can produce customer loyalty and customer
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The closed-looped customer feedback will be directed and focused mainly on the telecommunications sector and not the broader aspect of the study of closed-loop customer feedback theory.
1.6 THE CASE COMPANY – MTN NIGERIA
MTN Nigeria has been chosen as the case company to be used as the real business situation to justify the conceptual CEM framework derived from the principal theories. The main criteria for selecting MTN Nigeria is because they have been working to be a customer driving organization for four years. It provides the perfect opportunity to analyze whether and how MTN has been applying different customer experience services to promote competitive differentiation, increase customer loyalty and customer advocacy alongside increased financial performance.
1.7 THE BACKGROUND OF MTN NIGERIA
MTN Nigeria was one of 3 initial GSM companies licensed by the Nigerian Communications Commission (NCC) to provide telecommunication services to the Nigerian public in 2000. It commenced operation in 2001 and has grown to be the biggest Telecoms provider in
For example, a data warehouse can be constructed to extract and consolidate data from various computer systems or a workflow management system can be used to coordinate activities across several offices such as who works on what activity and how long it takes them to complete a task. Another way to shorten the close process is to centralize all accounting operations in one location. This allows the company to concentrate all of its efforts on improving the efficiency of a single
These strategies help them to better their competitors and maintain a competitive and dominant stance in their field. Customer Relationship Management is used very often throughout the whole company of CVS. CVS cares very much on the input from their consumers. CVS truly cares about improving their company, so they are always looking for feedback from
It is widely recognized by the customers for introducing a variety of innovative and high-quality products to the market while the competitors could not do the same. “During this period of time, the company grew at a very fast rate and expanded its market to Europe, Asia, and Latin America” (dynacorp case study). However, Dynacorp’s glory did not last long. The company started to face many problems while its competitors began to close the technology gap and gained back the
Introduction Zappos is an online shoe retailer that started its business in the year 1999. The company later expanded and increased the variety of the products of its business by adding clothing, beauty products, and housewares. The Zappos Customer Loyalty Team Case Study emphasizes on the customer service department and the initial focus the drop ship method. The company also created a brick and mortar storefront to expand the business from online only and increase sales. The management of Zappos took an innovative approach to earn their required return on investment.
But product differentiation requires a lot more efforts in research and development as
For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
• Rivals face high exit barriers Very High Potential Entrant Pressure • High entry barriers • Strong product differentiation • Menus change constantly with
Question 1 answer: Customer relationship management is mainly about building relationships with a company’s targeted profitable customers and maintaining that relationship through delivering customer value, as in how a consumer perceives a certain product and values it enough to buy it rather than buying the competitor’s product, and delivering customer satisfaction where the product meets the exact expectations the consumer had actually expected from the product or more, but not less. Companies can build customer relationships at many levels, depending on the nature of the target market (Kotler and Armstrong, 1988). Companies with many low-margin customers can develop basic relationships by which a company doesn’t get to know it’s consumers
Besides that, product differentiation is one of the threats of new entrants. Starting a new business we need to use a lot of money for advertising to attract customer, but we have to create our new things that cannot found in others competitors. For non-traditional barriers to entry, we have unique business model. We created a business with a unique design and establish a network of relationships that makes the business model work so that no people can easily to copy our
Organizations understand that they must offer the way customers need to purchase. For example, sending personalized mails to customers. CRM ventures that don't incorporate customer touch points are bound to fail. Enterprise Resource Planning (ERP): The integration between CRM and different business enterprise applications is likewise a critical pattern as companies try to bind together frameworks into a durable one.
has millions of buyers and the company continues to woe more consumers to buy its products. The threat to buyers is not a big concern to Apple Inc. The competition on this area falls on the pricing system and differentiation of products to meet the unique needs of the consumers. The move to differentiate the products of the company aimed at addressing the diverse needs of the consumers (Bergvall-Kareborn and Howcroft 2013, p.280).
Moreover, using this factor company also can cover the cost. The Walt Disney Company exemplifies a company that uses product differentiation to gain competitive advantage. It contains several examples of Disney using product differentiation. Some of Disney’s theme park product differentiation features include a friendly staff, extremely clean facilities, an extensive range of entertainment offerings and unique customer experience.
If a differentiation strategy is successfully implemented the firm will be able to do one of the following: command a premium price for its products, increase unit sales, and/or gain buyer loyalty to its brand. Starbucks has some of the highest prices for the type of products they offer and people tend to be extremely loyal to whatever coffee they are used to purchasing, because they trust the
Differentiation Strategy: - It includes developing new products & services which satisfies customer needs, they offer much more values than their competitors. They differentiated the segment according to the customers. They provide multiple customer segments which includes moderately priced to premium priced customers for example: 1. Bulgaria resorts & hotels (The Ritz Carlton) - Target segment:-Luxury guest. 2.
VALUE CHAIN ANALYSIS Of PTCL & MOBILINK Michael Porter Value Chain Supporting Activities of PTCL 1. Organizational Structure 2. Human Resource Development