logo image

The success of a company

The base of the success of a company can easily be associated with the customer satisfaction which is also a critical component of the profitability of the company. In this context a customer can be defined as anyone who receives the product or service produced or marketed by any individual or organization that has a ‘value’. The customer expectations and preferences are changing constantly. While ‘brand loyalty’ is a phenomenon of yester years presently the customers seek out those products and companies that have the ability to satisfy the customers.

It is not necessary that the customer’s rate the products high in all dimensions but the products should meet their requirements in...

Need essay sample on "The success of a company"? We will write a custom essay sample specifically for you for only $13.90/page

... those aspects what they think are important. It is a normal thing that “exceptional customer service results in greater customer retention which in turn results in higher profitability” . A sustainable growth in the profitability is assured by customer loyalty. To ensure organizational success the firm must make a superior customer service as the second quality of the company.

“A seamless integration of all components in the service-profit chain – employee satisfaction, value creation, customer satisfaction, customer loyalty, and profit and growth – links all the critical dynamics of top customer service. ” Positioning can help the company in identifying the optimal location of a it’s brand vis-a-vis the position of its competitors so that the company can improve its image among the customers. This way the company can maximize its profitability and be successful.

The objective of a good brand positioning is to guide consumer to know what a brand is all about, how it is unique and how it is similar to competitive brands, and why consumers to purchase their products/services, use the brand, and the brand value. On the other hand from the consumers’ point of view, a most successful company is measured against its market share, brand equity and profitability. Thus it can be observed that it is possible to measure the success based on different attributes from the standpoint of different customers.

Financial World magazine calculated with company sales and, based on expert estimates of margin, the resulting operating profits. Next, it deducted from operating profits an amount equal to what would have been earned on a basic unbranded or generic version of the product. For example, it estimated, the amount of capital required to generate a brand’s sales, multiplied that amount by the net return on that capital (e. g.

it assumed a generic version of the product would generate a 5 percent net return on capital employed) and subtracted that figure from operating profits to determine the profit attributable to the brand name alone. After adjusting for taxes, the remainder was deemed to be net brand-related profits. In 2001, Coca Cola’s brand value figure rose to US$68. 95 billion, and it was deemed the world’s most valuable brand, and that is the most successful financial company in the world.

“A Harvard Business Review article outlines the internal process required to drive growth and increase profitability. The article describes the ways in which service quality contributes to success, outlining the steps in the “service-profit chain:” Considered over a lifetime, each loyal customer can account for substantially more revenue and profit than suppliers see in any single transaction. Successful company leaders work to build an organization which fosters such long-term relationships.

As the above graphic illustrates, each step is important to ultimately realizing profitability and growth. ” Thus it can be observed that a successful company keeps the objective of customer satisfaction at the forefront. The customer satisfaction can be improved by building up a brand image which ultimately improves the profitability of the company. Hence how the customer perceives success of a company is how well the company is able to satisfy its customers.

Read full document

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy