Purpose of the study is to describe and discuss customer relationship coordination challenges following international acquisitions. Focus of this research is placed on B2B customers. The research are conducting base on these two thesis statement which first is what coordination challenges arise from international acquisitions in regard to customer relationship and how are the challenges connected to different customer-related motives and pre-acquisition relationships.
To conducting data collection, the researcher use multiple case study approach. This type of method enable comparison and also provide additional explanations and examples. To identify the different on sampling, acquisitions with different pre-acquisition composition of customers
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The three case study that have been described as to relate to the main issues and to see what coordination challenges could be explained by specific pre-acquisition customer relationships and motives. While an international acquisition mostly would mean that the acquirer establishes itself on a new geographical market, it may already have customers and representation there. Toyota’s acquisition of BT Industries illustrates this, as does BT Industries’ acquisition of Raymond in regard to customers. In the former, overlapping customers needed to be coordinated and a division of market was suggested. In the latter, the motive was to acquire a local representation for the customers, and thereby connect them to the acquired party. Pre-acquisition relationships hence link to coordination. As for challenges and in the circumstance of overlapping pre-acquisition representation, risks seem to be internal competition and cannibalism (Keller, 2003; Melkonian et al., 2006) follow. In the case of Toyota’s acquisition of BT Industries, double representation occurred on local markets and with cross-facilitation of products, the acquirer and the acquired party became competitors. Customers tried to play the companies off against each other, and the acquirer’s independent dealers did not act in compliance with the coordination structures and processes provided by the acquirer. This …show more content…
Coordination was impacted by customer reactions to different extents. Either customers created their own rules and thereby offset the intentions of the acquirer, zor they opposed those intentions by objecting to them. This points to customers as actors and reactors (O ¨berg, 2013). Toyota’s acquisition of BT Industries indicates how customers opposed the idea of separate contracts with the acquirer and the acquired party (reaction), and how they played the parties against one another to negotiate the best deals (the customer as actor). In NetSys’ acquisition of Verimation, customers reacted to the integration through allying with the acquired party, and telling that party that it did not want to have anything to do with the acquirer (see, e.g. the IKEA quotation in the case description). In BT Industries’ acquisition of Raymond, customers either preferred the USA or the European variants of the products, here linking customers’ actions to how they themselves had internationalised their businesses. Coordination was affected in its realisation in all these cases. The customer relationships changed as a consequence of the coordination (including also customer reactions). Such changes could involve both the content of the relationship (what is offered and who represents the firm) (O ¨berg, 2008), and the characteristics of the relationship (density, quality, authority) (Palmatier, 2008). Here, the
The Pantry’s use of forward integration contributes to this bargaining power. They receive much of their in-store goods from Budweiser, Frito Lay, and Coca-Cola, who in turn provides delivery services directly to stores. Bargaining Power of Buyers Low brand loyalty and minimal switching costs make the bargaining power of buyers high. Buyers make the decision to patronize other businesses when the opportunity to pay lower prices, presents itself.
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
Why is such a question relevant to a company like ICI, which is considering a specific acquisition? Explain your answers. Answer: From the stand point of society, synergy is the only benefit to the same. Tax considerations, diversification, control, purchase of assets below replacement cost are not relevant from the standpoint of society.
A slower form of expansion, which offers higher standardization options are wholly owned subsidiaries with more risks because of the different culture and customer behavior, and franchising/licensing agreements. High levels of standardization provide the possibility for adaption of the local needs and thus sales growth. (Zentes, Swoboda, & Morschett,
• Developing dedicated suppliers whose business depends upon the firm. One of the lessons Twitter, Inc. can learn from Wal-Mart and Nike is how these companies developed third-party manufacturers whose business solely depends on them thus creating a scenario where these third-party manufacturers have significantly less bargaining power compared to Wal-Mart and Nike. Bargaining Power of Buyers Buyers are often a demanding lot. They want to buy the best offerings available by paying the minimum price as possible. This put pressure on Twitter, Inc. profitability in the long run.
1. Explain to Mrs. Wen what CRM is and how CRM is different from traditional marketing. Customer Relationship Management (CRM) is a term that refers to practices, technologies, and strategies that organizations use to oversee and analyze customer interaction and information. This is done through use of the consumers’ lifecycles, with the objectives of enhancing business relationships with customers, helping with customer retention, and increasing profitability. It is basically a system created by the company to interact with its customers effectively and efficiently.
Franchising and decision variables The article in Franchising versus company-run operations: Modal choice in the global hotel sector discusses the various aspects considered by well-established hotels when they face the dilemma of whether to franchise a new hotel in a new geography or actually own the hotel themselves. The article is helpful in drawing the parallels for franchising decisions in service industry and especially pretty apt for the services which include high initial capital investment. The authors (F J Contractor & S K Kundu) borrow the definition of franchising from Caves & Murphy 1976 at the onset of the article and visualize the prospective franchisee as the sales agent or distributor of the brand owner.
This report will be based on the International Business theories to investigate relevant problems, which contributed to Walmart’s failure in German market, including the lack of understanding customers’s shopping habits and the inapropriate international human resource mangement method. Then, possible recommendations will be given to alleviate the issues. II. Situation Analysis and Theoretical Application 1.