Companies all around the world Essay
Companies all around the world are focusing on achieving the loyalty of newer segment and at the same time retain the values that they offer to their existing customers. As the time is one factor that changes uncontrollably hence, it is very important for the companies to adapt the changes that may increases the chances of achieving company’s goals. The change is often referred to as “reshape” and reshaping the structure of organizations are very important so that more non-customers are converted to customers.
The four design principles of reshaping the organization or landscape is discussed below in detail. 1. Outsource to the customer. Outsourcing has become an important act of every organization. The professionals of today have realized the fact that they should only offer what they are good at, because there are several look similar products and services available in the market, retaining the customer has become a difficult task.
Hence the solution to the problem is outsourcing the modules that a company cannot offer on a ten out of ten rating. Many businesses today practice outsourcing, because with the evolution of globalization companies can get a raw product cheaper than what it costs to them when they produce it.
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Companies that offer inconsistent product line usually fails to pay attention on all of their products, due to which their parent product sales decreases as well. It has been seen that there are mainly 20% of the product that gains company’s 80% profit and the rest of 20% is just a formality for the company. Downsizing such divisions that do not perform up to the expectations can be good, but the idea should only be executed if there is a not further chance to escape. 3. Treat each customer as a market segment of one. Customization is something that is need of the hour.
The evolution of internet media has increased the level of customer awareness and people today want exactly what they can think of. This is a great principle from the customers’ prospect, but it increases the level of challenges for the company as well. (Day, 1980) Companies have to value each and every customer with high attention so that they can create the highest value in the market, and similarly retain the highest market share. Dell has been one example that has very high level of customization for its customers. 4.
Create communities of value. In the modern era of social networks, communities are often created easily and they can either hit your brand badly or enhance your brand image rapidly. This is the responsibility of the companies to monitor all these communities so that they are aware what is going on. References Overby, S (2007) ABC: An Introduction to Outsourcing. CIO. com. Day, G. (1980) “Strategic Market Analysis: Top-down and bottom-up approaches”, working paper #80-105, Marketing Science Institute, Cambridge, Mass. 1980.