Maximo Rodriguez MAR4203 Chapter 6 Questions
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Miami Dade College, Miami *
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MISC
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Information Systems
Date
Dec 6, 2023
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docx
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4
Uploaded by maximorodriguez004
Maximo Daniel Rodriguez Santos
MAR 4203
Professor David Taks
November 26, 2023
Chapter 6 Questions
1.
Compare and contrast how your local grocery (Publix, Winn Dixie, Sedanos, Presidente, Aldi, Fresco y Mas or my favorite Trader Joes) would position the pre-
made meals area of its stores if it were trying to excel on performance, price, or relational value. What value proposition do you recommend as the path to sustainable competitive advantage?
Trader Joes and Aldi’s are two of the companies that are making many impactful strategies, are contributing to lower the supermarket industry’s negative effects on the environment. They are doing so not only by providing products that are using less pollution in their characteristics to be stored, they also are achieving a better sustainable advantage through their shopping bags. The valued proposition approach I recommend for them to continue growing nationwide is the relational service orientated approach. Now that the company has many healthy products with low pollution levels, they must continue giving the customers the products they need and want now. When the company provides more of the products with their customers’ specifications, they allow for expansion to occur and gain more customers daily. 2.
Performance: emphasize quality, taste, convenience, nutrition, or other functional attributes. Aim for parity with competitors on customization and price.
With the performance approach the quality of the service being provided. This is one of the techniques used by luxurious brands which make the service as polite and kind as possible for the consumer. There is also a commitment in this approach to have a more respectful environment where the consumers obtain what they are promised with high quality social responsibility. In this approach it is also prioritized that the company has the product that works better or lasts longer than competitors in its same industry. 3.
Price: emphasize low price. Aim for parity with competitors on customization and on functional attributes (quality, taste, etc.).
In the price valued approach, the companies use the more conventional product sizes for the
broad public to purchase. These are companies that have more of a higher demand to satisfy
so they develop products or services that will satisfy a larger group of consumers rather than it being customized per individual purchase order. This can also be understood as the best price in the industry for a good, developed product.
4.
Relational: emphasize personal touch, customization, and service. Aim for parity with competitors on functional attributes (quality, taste, etc.) and pricing.
Companies that utilize a relational value approach to satisfy their customers prioritize mutual trust based on prior commitments. These are strategies that impulse the use of fully
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customizable or tailored, instead of the conventional broad size fits as in the price value approach. In this approach it is more likely that the company has more of a communicational process with the purchase orders so that the customization is as exactly as
it is requested with every specification.
5.
Suppose Home Depot decided to adopt a relational value proposition. What business model should Home Depot adopt to support this strategy? Include in your answer a discussion of whether a CRM or Comprehensive Solution Management System would be more appropriate.
With Home Depot’s innovative advances and strategies, a relational value proposition would increase its customer satisfaction overall. For instance, if they were to apply this strategy of using complementary products, services, financing or even training in their Painting’s department. In that department, it could include for every gallon bought, an additional less than a gallon filled container of that same paint purchased. This will grant customer loyalty in the long term. Amid this being implemented with a financing account option, customers will feel that big purchases are possible when budgeted appropriately for their convenience. 6.
Discuss one company that you think is compromising its strategic success by focusing on too many different customers. What changes do you recommend?
The Chick-Fil-A company is one of the companies that come to mind when it comes to attempting to satisfy every customer. It is a company that has become one of the top 3 fast food leaders in the nation because of its unique menu development. The company is now being compromised because of the amount of demand that it is obtaining daily. The company’s desire to satisfy as many of their customers as possible has become their new challenge to overcome because of the value they emphasize in the products with high ingredients quantity volume. The company has different types of products as well depending on the location it is attempting to satisfy. For instance, in Atlanta they have Hamburgers, something that is not likely to happen in most of their restaurants. To have different provided red meat products in some locations and not in others can also make the processes of the company far more difficult to deal with. I suggest that it improves customer order fulfillment with better application engagement. To be one of the most demanded food chains in the nation, it must be able to keep up with the number of orders it is requested no matter the time of the day. This is necessary so that investments already made in franchises continue with their constant growth. 7.
What are the value creation and value capture mechanisms that Amazon uses in its business model? How consistent are these with its value proposition?
The value creation which Amazon utilizes is a service-oriented business model that is conceptually designed with a net perceived value. This is a value that the customer perceives to be of a certain value such as the monetary value and the processes required for the overall service. For instance, Airbnb provides a separate value proposition of co-create with both guests and hosts. Amazon on the other hand has the contrast proposition of being
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distinguished with its customer’s obsessions, their varying catalog, fast and reliable delivery, it is customer-centric, and provides innovative digital services. 8.
Identify a company that is threatened by morphing product boundaries? What strategies should it take to protect its value in the marketplace?
For marketplace companies threatened with morphing product boundaries, they must use strategies that unlike the traditional value chain model have to attract critical masses that have a high transact ratio. With a growing marketplace being developed every day, this generates information that must be taken advantage of to optimize any platform nowadays. Some of the tools used to protect value and encourage company boundaries are IT applications, payment systems, user experiences, etc. When developing a marketplace with protected value it must have a unique design in its pre-launch phase, its ignition phase must
also be impactful, scale-up phase to balance liquidity, and lastly the defensive growth stage.
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