PESTLE Analysis of Samsung
Introduction Samsung is a global conglomerate that operates in the “White Goods” market or the market for consumer appliances and gadgets. The company that is a South Korean family owned business has global aspirations and as the recent expansion into newer markets has shown, Samsung is not content with operating in some markets in the […]
How the race for Eyeball Views, Clicks, Likes, and Shares defines Online Marketing
What is online marketing and how it Works? Ever wondered how websites give away much for free or for low prices and offer lots of information and other such conveniences? Did you ever felt the need to know how online marketing works with terms such as clicks, click through, eyeball views, and likes and shares […]
Strategies of Brand Leaders
Building successful business and achieving as well as sustaining product leadership calls for a smart strategy combined with discipline to implement and achieve the plan. Understanding how the successful brand leaders have achieved the same helps management students to learn the ropes of the game. If you are hoping to make it as a business […]
Measuring Outcomes of Brand Equity
There are two types of method employed to measure brand equity at source. These two methods are qualitative research methods and quantitative research methods. Qualitative research methods are ideal for measuring brand association where in consumer perceptions towards brand are captured. Quantitative research methods are perfect to understand brand awareness within consumer. Both above mention […]
Customers Response and its Advantages
Customer response is the reaction by the organization to the queries and activities of the customer. Dealing with these queries intelligently is very important as small misunderstandings could convey unalike perceptions. Success totally depends on understanding and interpreting these queries and then working out to provide the best solution. During this situation if the supplier […]
No one would have ever imagined fifty years ago that the service sector would become a major contributor to the economy world over. Surprising but true, that in America as well as in India or in UK, service industry has grown beyond our imagination and continues to grow. Globalization and the advancement of technology has brought about a revolution in all of the service sectors be it hotel, airline or in software services. In fact service sector today employs the highest number of semi skilled and skilled manpower resources all over the world.
When you think of service, the picture that easily comes to your mind could be the McDonalds or Pizza-hut or the next best picture would be that of an airline. Our life has been made easier thanks to the service industry. Customers are pampered with the best quality service making them demand more and more in terms of quality of services.
Services as we all know offers intangibles and can be qualified through the experience delivered to the customer. Service industry in the past few years has gone places. Automation and technology have helped standardize and bring in efficiency in service. Service Organizations not only excel in offering timely and standardized service, they have gone one step ahead in offering personalized service to the customers too. Today every customer is recognized individually by the hotel or the airline he visits. The hotel knows the customer’s preferences and likes and are prepared to give him the best of customized service and engaging him in a relationship.
In a bid to offer the best of customized services and maintain the market share, service organizations have aggressively pursued various strategies internally. From Business process re-engineering, standard operating procedures, outsourcing and quality programs as well as all of the operational efficiency programs have been adopted and pursued aggressively in order to deliver faster and cheaper customer service performance. In the bargain to stay ahead of competition and increase their sales revenues, the companies have pursued marketing strategies more akin to that of product companies. The question that each of the companies have to ask themselves today is whether all of these have helped them become ‘Market Leaders’. Companies may be operationally efficient and give the best service at the best price, but that hardly gives them the competitive edge over the others to lead the pack.
Take the case of Southwest airlines and Bank of America who have looked different from their competitors in their respective segments. Bank of America literally monopolized the American market with their fastest processing and delivery times for credit cards along with the best of customer service. South west airline managed to position themselves differently from the rest of the airlines in terms of value for money and no frills flying. While the rest of the competitors spent thousands of dollars in re-engineering processes and bringing in operational efficiencies to become profitable, this airline simply positioned itself differently.
What makes Southwest airlines as well as the other market leaders such as Wal-Mart, IKEA and Mc-Donald’s is that they look at doing their business differently from the rest of the competition. When service offering is duplicated easily and every competitor is able to offer the same service at cheaper cost, it calls for service companies to think differently in order to retain their market leadership.
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