Wal-Mart’s Outcome of the Response
The initial response to the countermeasures implemented by Wal-Mart is definitely ineffective. Their little efforts put on regaining the trust of the public by making efforts to reverse antipathy had been ineffective. Although their efforts on controlling employee relations problems had some effects but they are now very far from attaining the ideal customer intimacy model.
COMPARISON OF ISSUES: GATEWAY AND INTERSECT INVESTMENT
Gateway Background Gateway, Inc.is an American computer hardware company based in Irvine, California which develops, manufactures, supports and markets a wide range of personal computers, computer monitors, servers, and computer accessories (Wikipedia, 2007). The company struggled in the early and mid-2000s, after years as a fixture on the Fortune 500 list of largest companies worldwide, the company was not listed in 2006, having dropped to number 508. Gateway became widely known in 1991 when they started shipping their computer hardware in cow-spotted boxes(Wikipedia, 2007).
According to Wayne Inouye of Gateway, “It’s about creating customer intimacy,” “We have to be nicer, more approachable, more responsive to our customers. ” Gateway Issues Related to Intersect Investment In a similar manner, Gateway is suffering from problems of implementing the customer intimacy model. Since starting this campaign in 2005, Gateway still shows some indication that they are far from implementing customer intimacy model. Service professionals report that parts and technical information are simply not provided for Gateway products, making third party post-warranty repairs difficult (Wikipedia, 2007).
These sorts of concern indicate that like Intersect Investment, there is still a big gap between the desired end result of the customer intimacy model. Unlike Wal-Mart and Intersect Investment, there are no major reports regarding gateways employee relation issues. Gateway’s Response to these Issues Like Intersect Investment, Gateway launched a massive campaign towards customer intimacy model. Wayne Inouye, after taking over the CEO post in 2004, has remade the computer maker into a lean, financially viable company.
He reduced the payroll, trimmed the management ranks, shuttered Gateway’s stores, outsourced manufacturing and streamlined the product portfolio. With these changes and the principles of customer intimacy model, Gateway was able to rise from the downward slope in 2004. Gateway’s Outcome of the Response Gateway has been successful in their direction towards customer intimacy model. Gateway achieved substantial gains across multiple categories in the third quarter, particularly related to supply chain management (delivery time, parts availability), phone support, ease of doing business and customer loyalty (Davern, 2006).
Gateway, after having been removed from the Fortune 500 list after struggling before 2006, managed to rebound and outperformed most of the PC manufacturers. There are studies that recognized Gateway for clearly differentiating itself in the area of perceived excellence in customer services, including customer relationship management, phone support and parts availability.
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