Project Management in Distress.edited..

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1 Case study 1: The industry disruptions at Zip Student’s Name Institutional Affiliation Course Date

2 The industry disruptions Confronting Zip Innovations that fundamentally alter an industry's functioning are referred to as industry disruptions. Many industrial upheavals that impair Zip's operations are present. One of them is the move made by rival businesses to prevent consumers with past-due payments from making purchases until their balances are cleared. Zip only required its clients to pay a certain amount each month, therefore this was a disturbance. Another industry upheaval was the development of methods for evaluating the creditworthiness of clients by businesses like Afterpay. This was a novel idea because Zip lacked a system for determining whether or not its clients could afford to pay. This can be one of the factors contributing to the company's losses in comparison to its rivals. Also, a technological solution has been introduced that enables the business to offer merchants and consumers efficient payment services. Why Diamond should conduct a MOST Analysis Mission, Objective, Strategies, and Tactics is the abbreviation for the phrase "MOST analysis." Businesses carry out this research because it helps them identify their objectives, aims, and the most effective mix of strategy and tactics to achieve those objectives. By translating an organization's vision and ambitions into realistic, attainable objectives, MOST analysis also aids in the establishment of successful organizations. Setting defined goals for each team member inside the organization using a MOST analysis. MOST analysis is used to improve internal business procedures and corporate culture by examining the internal environment of the firm. The MOST analysis is quite effective and typically instills a new sense of potential and purpose in businesses. Diamond ought to perform the MOST analysis

3 since it offers the company a clear way. By this study, Diamond will be able to identify areas that need more attention in order to achieve the overall goal. Also, the study will assist Diamond in posing the proper queries regarding the company's accomplishment. The MOST analysis will assist the business in creating SMART plans and tactics since Diamond wants Zip to become the market leader by fending off rivals. Since Diamond can explain the company's mission to all stakeholders, doing the MOST analysis is also crucial. Factors Influencing Customer Expectations Customer expectations are influenced by a number of things. The interest rates consumers must pay after getting the Buy Now Pay Later services is one of them. Customers anticipate that the business won't impose a hefty interest rate on them. People are more inclined to pick a business with competitive interest rates. The quality of the customer service customers have experienced also affects their expectations. When a consumer is considering using a company's services, they read the reviews because they want to see what previous customers have to say. A client may decide not to use a certain business' services as a result of one unfavorable comment. A customer's wants and preferences affect their expectations. Consumers want to engage with a business that guarantees their demands will be addressed by the goods and services offered. How Zip can Apply Strategic Piggybacking Creating a new activity with a strategic piggyback can assist a business in raising money to close the gap between costs and income. Zip can use strategic piggybacking to assist it in overcoming the problem of ongoing losses. Zip may use smart piggybacking since it wants to work with retailers like Walmart and Amazon.

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4 As a result, it can encourage users to buy things on Amazon by offering them a discount if they pay with Zip. This will boost Zip's client base and stave off competition from afterpay and other businesses. Giving discounts to clients who persuade others to utilize the services is another way that Zip may benefit from piggybacking. The business may implement a mechanism that enables existing customers to share discount codes with new customers who want to utilize Zip. The original customer gets a discount when a consumer applies the promo code. Zip's Options for Growth and Expansion Other market participants including AfterPay, PayPal, and payment card firms compete with Zip. It does, however, have certain development and expansion alternatives that might help it increase its market share. As a consequence, it will attract more clients and generate greater earnings. By discovering and pursuing markets that other businesses have not yet entered, Zip may grow. Due to the diversity of the company industry, Zip can undertake market research to assist in identifying areas of need. As a consequence, the business might grow into undeveloped regions. The business should do an analysis to determine client demands in order to assure growth. As a consequence, it might try to fill wants, which will make it more well-liked. An organization will earn new clients as a result of the rapid spread of word about its customer satisfaction. Whether Zip should seek a Partnership with its main Competitor Since it will be advantageous to the firm, Zip should look to collaborate with its primary rival. Customers are satisfied when competitors partner with you. The alliance gives the businesses the assurance that their offerings will satisfy a range of

5 clients' demands. Improving Zip's reputation is another advantage that might come from collaborating with the rival. Associating with the rival because they provide superior services would enhance how clients see Zip. Zip can acquire the resource they lack by collaborating with the rival, allowing them to provide superior services. With partnerships, businesses may give their customers a better value that can survive new competition. As each partner in a relationship draws in new clients, Zip will be able to provide services that will gain clients' loyalty. Ways through which Zip can benefit from new Branding Improved branding will make Zip more appealing to potential consumers, which will be advantageous. When Zip re brands, it will have a fresh look that may allow it to entice new clients who have never used it before. A corporation that re brands is more likely to draw in a new target market. Re-branding can also assist Zip in eradicating its negative reputation. Consumers assume that when a business re- brands, it intends to provide fresh, enhanced goods and services. They thus anticipate that the business will improve from what it was. Thus, Zip can reinvent itself and relaunch in the market. Zip will have the opportunity to compete with the industry giants when it rebrands. There will be a perception that the business is posing a challenge to the market leaders with its novel business practices. Recommendations for Diamond One of the suggestions I have for Diamond is that he look into buying start-up businesses for growth. As it would help the business enter new markets, Diamond should follow this technique like its rivals. Another suggestion is for the business to use differentiation tactics. By providing customers something distinctly different from what their competitors could be offering in the market, businesses can draw in customers via a differentiation approach. The main objective of implementing a

6 differentiation strategy is to strengthen Zip's competitive edge. To distinguish itself from competitors, Diamond should create novel methods of doing things. Diamond needs to make sure that Zip's services are unique and not just market standard offerings. Most businesses fail because they do not prioritize understanding client behavior. To make better decisions regarding the services they provide, the company must comprehend client behavior. The company may alter its offerings in order to better satisfy the needs and wants of its target market by researching the factors that influence the choices of customers. I advise Diamond to spend money finding out about consumer behavior and influence how people react to company offerings. Also, Zip has to improve its payment conditions in order to compete with rivals. If payment terms are clearly defined, it will be easier to anticipate cash flow, take on new contracts, and invest in new opportunities. If they are unable to make a payment in the method they like, many customers may back out of a purchase. By providing a variety of payment options, you can speed up the checkout process and encourage customers to finish their transaction.

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7 References Agnihotri, A., & Bhattacharya, S. (2021). ZIP: In need of growth-orientated competitive strategies. Harvard Business School. https://store.hbr.org/product/zip-in-need-of-growth-oriented-competitive- strategies/W21115

Project Management in Distress.edited..

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