These course notes are for use in conjuction with Learning Module 3 of
MG 476 - Services Management.
Competitive service strategies
Michael Porter has argued persuasively that there are three generic competitive strategies:
Each of these strategies will be described in turn:
Managers pursuing this strategy have an over-riding concern for keeping costs, and therefore, prices, lower than those of competitors. Normally, this means extensive production or service facilities with efficient economies of scale (low unit costs of making products or delivering services). Productivity improvement is a high priority for managers following the cost leadership strategy. (Wal-Mart, Inc., is a prime example of the cost leadership strategy). Following are listed a number of ways in which companies might pursue this strategy.
Seeking out low-cost customers. Examples:
Target
http://www.target.com
Target is a good example of a company that focuses on low-cost customers by portraying
themselves as high quality, low cost
and therefore excellent value. Target markets that it offers fun, style, and value, and
there motto states: "Expect More, Pay Less."
Jennifer Naylor
This site talks about many aspects of the Target stores, such as what items they carry
and the mission statement behind the stores. The Target theme is Expect More and Pay Less.
Target provides good quality at low prices.
Loni Heins
This site gives out information about Payless Shoe Source. It gives information about
their company and also gives the consumer the chance to write and tell them what they
think about their product and customer service. With in the site you are also able to
print off coupons to use in the stores.
Karen Banks
I chose Ivory Soap as the overall cost leader because all of the elements of the
strategy reinforce its cost advantage. Ivory can lower the price of the soap if a there is
a strong-willed competitor.
Anna Jo Catterson
Standardizing a custom service. Examples:
SOUTHWEST AIRLINES
URL: http://www.iflyswa.com
Southwest Airlines is the only major shorthaul, low-fare, high frequency,
point-to-point carrier in the airline industry, in the United States. This “cost
leadership” strategy has proven to be successful, as yearend 1998 marked the 26th
consecutive year of profitability. This is impressive, since it was the only major carrier
in 1990, 1991, and 1992 to make net and operating profits.
Peggy Brecheisen
Reducing the personal element in service delivery. Examples:
Reducing network cost. Examples:
The corporation I chose is GMC. This is a company that deals with overall cost
leadership. GMC is always trying to keep prices down, as well as continually improving
production ways.
Kevin Stultz
Taking service operations off-line. Examples:
For this strategy to succeed, a company's product or service must be considered unique by most of the customers in its industry. Advertising and promotion help the product or service stand our from the crowd. Specialized design, a widely recognized brand, leading-edge technology, or reliable service also may serve to differentiate a service in the industry. Because customers with brand loyalty will usually spend more for what they perceive to be a superior product, the differentiation strategy can yield larger profit margins than the low-cost strategy. Following are some of the ways managers may use to pursue this strategy.
Making the intangible tangible. Examples:
Differentiation is one of the key ingredients to a successful business strategy on the
web. The goal is to create a distinctive identity that reflects outstanding quality and
global prestige. The WorldBest network was established with that objective clearly in mind
- to create a vehicle to assist your business to differentiate itself on the Internet.
WorldBest.com has developed a unique web based marketing strategy with a range of
significant benefits. By becoming a WorldBest network member, leasing or purchasing a
WorldBest domain name, or by hosting your website with us - you are participating in a
marketing strategy designed to give you greater prominence and visibility on the web. (The
WorldBest Network)
http://www.worldbest.com/Webs1/Benefit5.htm
Steven Good
Abercrombie & Fitch
http://www.abercrombie.com
I picked Abercrombie clothing store as a competitive strategy versus all
other clothing stores. Abercrombie clothes last longer and a lot more
comfortable compared to most clothes.
Derek Smithhisler
http://members.aol.com/isdiff/index.html
This web site illustrates differentiation because this group of people are of a elite
group with minimum education levels required to be admitted. They as a group are trying to
do research in areas that are important to the entire society.
Jeff Albers
Customizing the standard product. Examples:
Harley-Davidson http://harleydavidson.com/
Harley-Davidson is known worldwide for its special customization of its baseline
motorcycles. Last time I heard they had a backorder of approximately 1yr for a customized
motorcycle.
Justin Bovitz
http://www3.vw.com/cars/newbeetle/
This site allows you to search for the color of car you like. It also
allows you to have the car dropped. They are a car known worldwide and
sales are starting to take off again here in the U.S.
Bobby Jones
Gateway 2000
http://www.gateway.com
The differentiating service factor that was first established
by Gateway was the idea of building the customers computer system to
meet their specific needs. This was a competitive advantage that enabled
Gateway to be an industry leader.
Dave Beran
Standardizing a customer service, http://www.customservicesystems.com/,
Customer Service Systems is a building services company that has been in
business since 1974. They have provided their customers with quality
service, dependibility, honesty, and satisfaction.
Michelle Beets
Nike
http://www.nike.com
I picked Nike as a company that used differentiation as its competitive strategy. They
develop their products differently than their competition to put them ahead in the sports
gear industry.
Amy Thompson
Starbucks- http://www.starbucks.com
Starbucks coffee stores use differentiation as a a competitive
strategy. Everyone who has ever tried coffee has surely heard of,
seen, or been to a Starbucks location. The green and white logo is
easily identified, especially in airports. I have observed people
standing in long lines to pay high prices for this famous coffee.
Kristen Cataldi
Reducing perceived risk. Examples:
Giving attention to personnel training. Examples:
Gap
http://biz.yahoo.com/p/g/gps.html
Gap, Inc. includes some of the well known stores that we shop at such as: Gap, Baby Gap,
Banana Republic, and Old Navy stores. Revenues are increasing at an astonishing rate due
to a unique product that services men, women and children. The products are apparel,
accessories and personal items.
Anne Boss
Controlling quality. Examples:
http://www.cablelan.net/geoffw/
As for product differention, I feel that the military humvee or the
civilian hummer, is an excellent example. There is no other 4X4 that
lives up to the rigorous standards that these are put up to while still
being street legal(hummer). The price tag alone is enough to
differentiate it from its competitors. A few other features that make
it different are style and reputation.
Kenneth Finley
Kodak
http://www.kodak.com/
For years Kodak has been capturing our lives and memories on film. Kodak
has managed to differentiate themselves from the competitors with top
quality. When a person purchases a roll of film from Kodak they can count on
good quality and great pictures. Kodak has several target markets from the
advanced user to the first timer. They offer disposable cameras for one
time use such as vacations and party pics. The company provides high
quality film at a reasonable price. While technology advances so does Kodak.
They now provide many software programs to use on the computer and with
digital cameras. Kodak has been the leader and has beat the competition by
offering a quality product to the consumer's that they are not able to get
elsewhere.
Annette Purdon
http://www.pg.com/ http://www.pg.com/
Since there is a wide variety of products on the market each must catch the eye of the
consumer or risk a loss in sales. There have been many ways that this has been done; make
it eye catching, dependable, low price, and so on. What about brand loyalty? This is a
really good way for a company to market its products. This is a strategy that Crest
Toothpaste owned by Proctor and Gamble goes about its differentiation strategy. Brand
loyalty is made through time, but it is also a fusion of the company's marketing mix. Low
cost, good quality, and the company's longtime image of dependability, these factors make
Proctor and Gamble's Crest Toothpaste a differentiated product.
Cynthia Stoner
Birkenstock
http://www.birkenstock.com/home/home.htm
Birkenstock focuses soley on making shoes. This website demonstrates
their quality commitment to providing comfortable, yet unique, shoes for
all occasions. At this location a person can answer all of their
questions regarding this company and the services provided.
Heidi Risley
FranklinCovey - www.franklincovey.com
FranklinCovey is a company that prides itself on its quality planners,
and motivational products. FranklinCovey's products are differentiated
amongst the thousands of other organizational tools because of the
quality and diversity of their products. FranklinCovey's customers are
willing to pay the extra amount to get the quality that stands behind
the item.
Haley Ayers
The Body Shop
Body shop has strong policy, which is not using animal testing.
Most the skill and facial care company will test the product and
check safe for human skin or body. Body shop has been researching
the natural products. They use the natural resource and make these
skin care products. Body shop gives you 100% grantee of safety for
human.
Takaomi Suzuki
This generic strategy involves achieving a competitive edge by delivering a superior service to a limited audience. Following are some of the ways managers may choose to pursue this strategy.
Careful customer selection. Examples:
I believe that Cartier jewelers uses the differentiation strategy very well. At
www.mansjewelers.com you can get the history of the cartier tank watch.
They pride themselves in their quality craftsmanship and attention to detail. Each watch
is hand assembled and hand finished to ensure the highest quality of each watch.
Mary Yewell
A particular buyer group. Examples:
National Tool and Manufacturing Company
http://www.ntm.com/
National Tool and Manufacturing Company is a worldwide supplier of components for the
molding industry. With stocking locations nationwide, NTM considers itself a "One
Stop Shop" for molding components.
Mindi Wilson
Clinique
URL: www.clinique.com
The Clinique companies target market is females with internet access who
desire prestige cosmetics. Clinique gains customers by offering home
delivery to people where Clinique products aren't available. (i.e. Emporia)
Melissa Koch
Juice Stop
Juice Stop is a growing chain that makes a variety of fruit smoothies, fresh
juices, and healthy snacks. Geared toward the health conscious, Juice Stop
combines nutrients (such as Calcium, Protein, Energy Blend, etc.) with their
delicious smoothies.
Latricia Papes
Dell is one of the market leaders in the business of direct selling.
They have a market focus of being the best at providing computer systems
to corporate america. It is because of this market focus that they have
been so successful. They employ over 26,100 people in over 33 countries.
Josh Harris
GATORADE
This site delivers information to a limited audience. The focus is on the athletes. The
site illustrates a cool
bottle, and gives only suggestions to athletes about what the drink can offer them after a
workout or
competitive event or even before.
Michele Schiffelbein
A segment of the market. Examples:
Gap Inc.
http://www.gap.com/
From the examples under market focus, I feel that Gap Inc. has a large segment of the
market and they have a large geographic store area. Gap Inc. includes Gap, babyGap,
Gapkids, Banana Republic, and Old Navy clothing outlets. With so many different stores and
chains Gap Inc. can offer services that many of their competitors cannot.
Derrek Harter
This would be considered a market focus. It delivers a
superior product to a particular market, parents with childern or
parents expecting. The focus is towards a segmented market and a
particular buyer.
Geoff Elsas
http://www.familydollar.com/
Family Dollar is design for rural and small town areas. They are put
in these town for there low to low-middle class customer base. Prices at
these stores do not exceed twenty dollars.
Leon Brigham
Priceline.com is a new buying service where you can save money by
naming your own price for the things you need.
Let's say you want a hotel room in Las Vegas, but you only want to pay
$100. Priceline will take your offer to participating, name-brand
hotels in Las Vegas to see if any will agree to your price. If they are
successful, you've got the room you want at the price you want to pay!
Since airlines fly with over 500,000 seats empty every day, and
thousands of hotel rooms go unsold every night, you can understand why
companies would be willing to consider your price. It makes sense for
them, and you benefit by getting a great deal! Airline tickets and
hotel rooms are just the beginning for this company who provides the
lowest prices in the market.
Rico Coppel
A geographic market. Examples:
http://www.guardianstormshelter.com/
This page focuses on the mid-United States. This is a site for storm
shelters, specifically for tornados. They stress the fact that you may
have only a short amount of time to take cover, and this is when your
own shelter becomes very valuable.
Nikki Jones
http://www.axiom-group.com/MarkSeg.htm
These site features the Axiom Group, which specializes in research of market segments that
will achieve market share and profitability for your company. Their research will define
your market, develop hypothesis, define key segmentation criteria, and define the proper
research method that fits your needs. The Axiom Group will conclude with interviews and
questionnaires that will find the proper market segmentation for your company.
Brenda Carmichael
[20]
Winning Customers in the Marketplace
Winning customers in the marketplace may be pursued as a service strategy using one or more of the following themes:
Availability. Examples:
W.W. Grainger, Inc.
http://www.grainger.com
With 350 local branches, 1 National Distribution Center, 2 Regional Distribution Centers,
6 Zone Distribution Centers, the availability of GraingerĘs product is unlimited. A
satellite network has been installed between all of their locations to guarantee product
availability.
Mindi Wilson
Wal-Mart
http://yp.yahoo.com/py/yploc.py?stx=walmart&stp=a&desc=walmart&btype=
I believe that Wal-Mart is an example of availability because of this web site. If you go
to this web site you can enter some information and it will tell you where the nearest
Wal-Mart is located.
Jeff Albers
OSCO Drug
http://www.oscodrug.com
Osco drug wins customers in the marketplace by their availability
service strategy. By being open 24 hours a day Osco's motto has
become..."people don't always get
sick between 8 and 5!" This allows them to better serve and win new
customers within their market.
Dave Beran
American Online offers many different services it is easy to find and use. Millions of
people go on everyday and find it to help them out in everyday life.
Karen Banks
RADIO SHACK
http://www.radioshack.com/
I believe that Radio Shack is an example of availability. Their web
site provides superior service. You can find the nearest Radio Shack
in the country by simply typing the zip code you live in.
Rico Coppel
Convenience. Examples:
Fedex
http://www.fedex.com/
Fedex is not only a dependability, but a convenience service to customers in the
marketplace. We use Fedex, Airborne, UPS, and Priority Mail on a daily basis where I work.
Fedex knocks the socks off of the others but you pay for it with prices 3 times as high as
regular mail.
Anne Boss
1-800-flowers http://www.1800flowers.com/flowers/welcome.asp
This web site gives you the convience of shopping for flowers from home
24 hours a day. They are also open 365 days a year. They offer on-line
staff to help you find something in your price range, that meets your
needs. They also offer sameday and overnight service for a fee.
Bobby Jones
Casey's General Stores
http://www.caseys.com/
http://www.caseys.com/
Every consumer looks for a product with convenience in mind. Casey's General Stores are
all about convenience. These stores are located in South Dakota, Nebraska, Kansas,
Missouri, Illinois, Indiana, Wisconsin, Minnesota, and Iowa. Over 1,100 locations are
available. These little convenience stores are available to the consumer whose needs vary
from a hot pizza to oil and everything in between.
Cynthia Stoner
Pizza Hut
http://www.pizzahut.com
Pizza Hut offers convenience to it's customer's by offering delivery.
All you have to do is call in your order, they give you your total, and
then drop it off at your place of choice.
Nikki Jones
http://www.gap.com/onlinestore/gap/
The Gap has made it more convenient for customers to buy there clothes
by providing services for the on the internet. Customers now can get some
of the finest clothes online because of there services.
Leon Brigham
Hotmail
http://lc3.law5.hotmail.com/cgi-bin/login
As technology increases, hotmail continues to increase its customer base
with the convenience of allowing people to access his or her e-mail
accounts from any computer available that has internet access. This
convenience is very popular and with great service, e-mail users can
count on a reliable form of communication through the internet.
Heidi Risley
I chose McDonalds as a company that uses convenience to gain their customers. McDonalds
are conveniently located in many different places like Walmart and even some gas stations.
They have fast and easy service.
Amy Thompson
My Talk
http://www.mytalk.com
My Talk is a new service available that allows you to check your email when
a computer is not available. Simply call MyTalk and an automated system
accesses your email. The system then reads you your email and leaves it
there for you to access later.
Latricia A. Papes
This website allows a browser access to just about anything they want to know about the
Penney Corporation. The biggest convenience JCPenney provides is a catalog that can be
ordered from 24 hours a day over the phone or online. Customers can shop whenever they
want!
Loni Heins
7-11 offers many conveniences to its customers, such as paying at the
gas-pump, quick snack food, lottery tickets and stamps, and the stores
are usually open 24 hours a day. Because 7-11 stores are "convenience"
stores, quick and convenient transactions are facilitated by parking
immediately in front of the door and two cashiers maintain two lines
for very few people.
Kristen Cataldi
Dependability. Examples:
United Parcel Service http://ups.com/
UPS is also known worldwide for their reputation of dependability in serving their
customer's needs in an efficient and timely manner.
Justin Bovitz
Geiler Company http://www.geiler.com/company_history.html
For over 100 years and four generations, The Geiler Company has served the plumbing and
piping needs of the tri-state. The Geiler family believes that value and dependability is
of paramount importance to customers. That's what has made Geiler one of the area's oldest
family owned businesses. (Geiler Company website).
Steven Good
Fed-Ex is also known worldwide for their reputation of
dependability in serving the need's of customer's in an efficient and
timely manner in the overnight shipping of packages.
Geoff Elsas
Jackson Sound Productions
URL: www.jacksonsound.com/
Jackson Sound Productions is the one to know for audio, offering its clients
reliability, dependability, quality and prompt delivery whether it's audio
duplication or blank products.
Melissa Koch
Personalization. Examples:
Customer Satisfaction is what the www.2coolweb.com
website sells in the competitive world of Internet domain sites. Using testimonials from
current satisfied customers 2coolweb attracts new business to their web site.
Mary Yewell
http://www.auraline.com/
These site features Auraline Multimedia Direct Mail, featuring personalization of direct
mail and greeting cards. This multimedia creation kit will enhance web pages and direct
mail through personalization. With the fast growing pace of web masters and e-mail buffs,
this will be a benefit to any company performing business over the internet.
Personalization will make the customer feel more important within your organization,
therefore you will gain a new customer or keep an old customer. This software will also
help you track, target and profile customers to ease the marketing process. What a great
software for marketing.
Brenda Carmichael
LEVI STRAUSS & CO.
URL: http://www.levi.com/originalspin/
Levi Strauss & Co. offers a program called Original Spin. This program allows a
person to create his or her own unique pair of jeans. The first step is to choose a style
of jean (basic, relaxed, or low-cut) and whether baggy or fitted is preferred. Next, the
choose of leg openings must be decided (flare, wide, boot cut, tapered, or straight).
Another important decision is if the button or zip fly is desired. Of course, another
choice is the color and fabric to be used on the pair of jeans. Measurements are then
taken. All of this information is stored into a large database.
Obviously, this personalization strategy is top of the line. Whenever the customer wants
to obtain a new pair of jeans, they contact Levi Strauss & Co. and order them from an
identification Code. Since this program is new, there are only fourteen stores that
currently provide this service. The closest store for us would be in Dallas, Texas.
However, once fitted a new pair of jeans can be purchased for $55.00 plus tax, which is
not bad to get that "perfect fit".
Peggy Brecheisen
Foot
Locker
This site offers many different products and services for an individual. Each link within
this site has offers
for seven different types of categories. These categories help customers search quickly
and efficiently for
the product they desire.They also offer a supersite which includes products from Lady Foot
Locker and
Kids Foot Locker.
Michele Schiffelbein
Price. Examples:
Wal-Mart
http://www.wal-mart.com/
Wal-Mart in my opinion meets many of these examples. There is only one
that I always seem to remember and that is everyday low prices.
Derrek Harter
Quality. Examples:
Eddie Bauer
http://www.eddiebauer.com/home/home.html
Eddie Bauer markets its stores according to its high quality and long standing reputation
of that fact. Eddie Bauer's creed is stated as such, "To give you such outstanding
quality, value, service, and guaruntee that we may be worthy of your high esteem."
Jennifer Naylor
Reputation. Examples:
Service Master
http://www.weserveflga.com/rep.htm
Service Master is the number one residential and commercial cleaning
service in North America. Their terrific reputation is known worldwide.
Michelle Beets
Budweiser
http://www.budweiser.com/homepage/default.html
Budweiser has been the choice beer for several generations now. They are a
leader in the beer industry and have a name brand that represents "top
quality". When visiting Budweiser's web page you can go through a tour of
the brewery and find out exactly how they brew the beer to perfection. It
is interesting to see what the raw materials are needed and the process that
is used. The company has an excellent reputation and is known for the
outstanding quality product they produce, market and sale.
Annette Purdon
Safety. Examples:
URL: http://www.mebodyand bath.com
I found this web page from my old research. This company provides skin care products and
lotion. They also are able to order by their web page (online service).
Takaomi Suzuki
Speed. Examples:
Amazon.com - www.amazon.com
Amazon.com offers a huge variety of products and delivers them at a
speed that is hard to compete with. I have used Amazon.com several
times to find books that I needed to complete an assignment. I was very
satisfied with the service that I received and will continue to visit
this site.
Haley Ayers
UPS usually wins customers, because there well known to deliver across the
country quickly and effiently.
Derek Smithhisler
Fed Ex
http://www.fedex.com/
Fed Ex claims to be the fastest in the business. Though they are high in price they
offer the fastest delivery with top of the line tracking. You can't be disappointed.
Kevin Stultz
Amazon.com is one great example of how customer service can be different. Amazon.com is
the fastest growing leader in book sales in over 10 years. Customers are taking advantage
of the easy access and quick arrival of purchases through Amazon.com.
Anna Jo Catterson
E-Trade
www.etrade.com/
Etrade is where you can buy and sell stocks over the internet. They are
one of the top sites to buy and sell stocks. The way they win customers
and keep them is the speed at which the trades are executed. A customer
is not going to remain a customer if it takes a long time to execute a
trade because time is money.
Josh Harris
Mcdonalds is known by the service time for its customers. Their times
are considerably faster than that of say KFC.
Kenny Finley
[20]
Since most services are produced and marketed at the same place and time - and often by the same person - a service strategy usually integrates both marketing and operations.
The term strategic service vision has been coined to define such a service strategy. [33]
A strategic service vision focuses on four elements:
1. Identification of a target market segment.
2. Development of a service concept to address targeted customers' needs.
3. Design of an operating strategy to support the service concept.
4. Design of a service delivery system to support the operating strategy.
Service Operations Strategy Questions
Questions service organizations might ask in regard to operations strategy: When examined along with overall corporate objectives, effective service strategies may be developed.
1. Product technology. Fast-Food: should sandwiches be made to customer's orders (Wendy's) or made to one or more specifications and stored (McDonald's)? Grocery stores: use scanners or manual reading of prices.
2. Capacity. Is capacity the right kind? Large jet (economies of scale) or small jets and more frequent flights (greater degree of customer service).
3. Facilities and location. Location is a critical strategic decision. Hotel downtown or on expressway? Number of units and location relative to competitors.
4. Process technology. What level of technology, mechanization, and automation should be used? Increased levels of self-service, often computer-based, to replace traditional human interaction?
5. Human resources. With varying levels of demand, use part-time employees and staff that are cross-trained in a variety of skills. Personnel with more customer-contact must understand customer interactions and have better "people skills" than task-oriented personnel who work behind the scenes.
6. Operating decisions. Critical decision in customer satisfaction is that of waiting lines. What will affect customer perceptions of waiting and service quality? Groceries shift workers from stocking shelves to checkout lines as demand increases.
7. Supplier integration. The ability to meet demand requires timely and efficient delivery of supplies. Supermarkets have own distribution; fast-food corporation own cattle rather than rely on external suppliers.
8. Quality. Consistency in service delivery is key to service quality. Customers' perceptions of service quality are affected by each of the other components of strategy. [32]
This assignment consist of locating and reporting on two web sites.
1. The first site will illustrate one of the factors under one of the three Michael Porter generic competitive strategies: overall cost leadership, differentiation, and market focus.
Report Format: Title (the title here is the word or phrase of the factor you are illustrating), URL, short explanation of the site (two sentences should be sufficient), your name.
These will be posted, under the appropriate strategy factor.
Send your Report to the instructor, subject: MG 476 - Assignment 3-1-1
2. The second site will illustrate one of the Winning customers in the marketplace subtopics (subtopic, not topic).
Report Format: Title (the title here is the word or phrase [of the subtopic] you are illustrating), URL, short explanation of the site (two sentences should be sufficient), your name.
These will be posted.
Send your Report to the instructor,
subject: MG 476 - Assignment 3-1-2
Go to http://www.geocities.com and explore some Avenues/Neighborhoods (interest areas). Be sure to look at Blueprint, the e-zine. Think about the Service Strategies you read about above.
Yahoo! recently paid something like $ 4 billions for this web site and management team.
Similar "Community" - "Neighborhood" - "Family" sites are being developed across the Internet as e-commerce begins to flourish. Think about these implications.
After you have explored several areas of GeoCities, write two or three paragraphs about your impressions of their service strategies. Would you be interested in becoming a Geocities "resident?" Why? Why not? How do they survive giving away free sites to post your web pages? General comments welcome.
Send your report to the instructor by e-mail (or an attached file). Be sure to use subject: Assignment 3-2.
Choose a company and discuss how you believe that company (or portion thereof) has implemented a strategic service vision. (five to seven sentences should suffice- be precise, not rambling).
These will be posted at the end of this page.
Send your Report to the instructor, subject: MG 476 - Assignment 3-3
William L. Smith Teacher Home Page Service Management Home
Page Emporia State University
If you have comments or suggestions, email me at smithwil@emporia.edu
This page last updated Sep 13, 1999.
Strategic Service Vision Examples
The best example I can think of with regards to a company using strategic
service vision is Nordic Track. When Nordic Track first came out on the market they only
offered one style of cross-country skier and a customer could only buy their product over
the phone. Trying to keep up and meet customer needs, Nordic Track now offers a wide
variety of skiers in addition to a whole line of other exercise equipment. The customer
can still order over the phone in addition to ordering over the internet or going into the
local Nordic Track store.
Justin Bovitz
The company I have chosen to write about is every child's dream: a Kool-Aid stand. On a
rudimentary level a Kool-Aid stand can be used to illustrate a strategic service vision.
All of the different elements can be identified through this example.
Identification of a target market segment: all the people who are passing by.
Development of a service concept to address targeted customer's needs: sign that reads
"Ice cold Kool-Aid 25 cents."
Design of an operating strategy to support the service concept have friends keep a
stockpile of Kool-Aid, ice, and cups on hand.
Design of a service delivery system to support the operating strategy friends who do the
errands get a cut of the profit.
Steven Good
Nintendo Inc.
The strategic service vision that I am using is the Nintendo Company.
Their majority target market is mostly college age, to around middle school age kids.
After Nintendo came out with their Super Nintendo, competitors began building better
operating systems. So Nintendo began working on a new machine which would surpass the
competitors (Nintendo 64). NintendoĘs strategy was to build a system, which had better
graphics, higher resolution, a higher level of quality, and more to offer. The delivery
system that Nintendo uses is mainly through retail stores like Wal-Mart or Best Buy.
Derrek Harter
I believe that U.P.S.'s next day air fits the bill for this assignment.
Their target audiance is anyone who needs to ship or recieve some thing
fast. The service concept would be the idea of where and how they were
going to implement the hubs. The operations services would be the
actual everyday activities and making sure packages were getting to
their destinations on time. The service delivery system would include
the actual delivery and pick-ups that the drivers are sent to do.
Kenny Finley
The company that I am going to talk about that has a strategic service vision is one of
my own companies. It is Art's & Mary's. Since I am part of the team that is marketing
this company, it is easy for me to say that we definitely have a target market. We are
targeting a market that not only likes the taste of authentic taste on a chip, but has
access to the Internet. We are implementing an advertising plan that reinforces the
Internet site and the safety issues that we promise with the use of our site. With this in
mind, I think that our market is between the ages of 18 and 45. This target market will
provide us with a basis for our marketing strategies.
Jeff Albers
I would say that Big Bertha golf clubs are only for a select group of
individuals because of there price. They are like the Harley Davidson
of motorcycles only for a select group of people. They are so secular
in group status the rich get rich and the poor get poorer. I feel that
it would be nice if there clubs were lower in price so that all groups
in Golf could have a chance to own a set of Big Bertha clubs. This trend
comes and goes with all particular styles, but the offering to my age
group without the bucks I can't afford which, Identification of a target
market segment is in place. All they need to do is make a select line
for people at a lower income to afford. All of there other operations
can stay in place.
Geoff Elsas
The Sunflower Nook
1. The Sunflower Nook has identified their target market as women most likely ages 20 and
up.
2. Their service concept that attracts women is the ability for women to decorate their
homes from items out of the store and
create a home that is unique and meaningful. The store is also an avenue for women to
indulge or pamper themselves with
the better things in life that they enjoy.
3. In the store you will find a nice smelling, quiet atmosphere in which it is almost
pleasureable just to shop in. They also offer a snack or drink each day showing something
different that you can purchase in the store.
4. Also in the store you are greeted by the ladies that work there and they offer their
help once and then allow you to shop in peace.
Jennifer Naylor
I am going to use the company I work for, Glendo Corporation, since I
know most about them.
I believe Glendo/GRS has identified their target market. We are a
company who manufactures equipment for jewelers or engravers and our
other line is manufactured for home shop machinists to sharpen tools.
We advertise in publications that people in this market would read or
look through. We then have an 800 number for people to call to request
our free catalog.
After a customer receives the catalog, a salesman will give the customer
a call to verify that they have received their catalog and to see if
they have any questions regarding any of the equipment. If the customer
seems interested in the equipment, another call is scheduled for the
customer so the salesman can check back with them. This service concept
helps the salesman to target the customers needs.
After the customer receives the product(s), the salesman then calls them
back again to see how everything is going. Many of our customers are
very impressed with our level of concern for their happiness. Talking
to customers and having them appreciate what we are doing and also tell
about how they love the equipment, is really a great aspect of my job.
It helps to go to work to know that the equipment we make is high
quality and that our customers enjoy the equipment and the help our
company provides.
Michelle Beets
Gateway provides adequate customer support to their buyers. The goal of Gateway is
"to offer PC buyers an alternative to limited choices and inadequate support common
in the retail PC market". Ted Wait and Mike Hammond realized the potential market for
PC's at a reasonable price, therefore they launched Gateway. This company offers a variety
of services and support on their web site, www.gateway.com. They include FAQ's, customer
support newsletters and a public newsgroup. Gateway developed a product for a certain
target group, individuals in need for a computer at a lower price, focusing on the
"average" person. They provide adequate customer support through the Internet
and toll-free calls. The customer is allowed to have their computer built the way they
want it built, then it is delivered within a few days or weeks to their front door. Now
that is service. Gateway puts their customer first, they allow their customers to
determine their options and not forcing them with other items.
Brenda Carmichael
Victoria's Secret
Target Market - Women of all types, shapes, and sizes.
Development of Concept - Victoria's Secret caters to all types of
women. They have comfortable pajamas and robes for the laid back
type. Have slips and camisoles for the working woman. They have
longerie for the saucy (permenant or temporary) type. They also have
plus sizes.
Design of Support - They have many locations, many in malls which are
very convenient. They offer a wide selection of all styles and clerks
who bring other styles and sizes if you need them. They also have a
mail order catalog
Design of Delivery - You can make your purchases in the store using
cash, credit, or check. For even more convenience, you can order by
phone, pay with plastic, and it's on it's way to your house.
Nikki Jones
I believe First USA has adopted a user friendly and customer oriented
webpage that demonstrates a strategic service vision. First USA works
with Emporia State University with the Hornet Credit Card; targets a
market selection, ESU fan, students, faculty and staff, and alumni. The
service concept of a credit card and the availability of credit to the
user's discretion demonstrates its vision. The operating system can be
described as the customer using the credit card, viewing their account
information through the internet or by the toll-free customer service
telephone number. Offering various promotions to accompany the credit
card provides a positive feedback for the customers and supports its
operating strategy.
Heidi Risley
The company I have chosen is MSC Industrial Supply. MSC has targeted small and medium
size manufacturing and metalworking companies. In manufacturing, you never know what new
project is going to come up. MSC knows this and is an authorized distributor of more than
1,900 different manufacturers and stocks more than 372,000 items that are ready to ship
the same day. To complement their surplus of inventoried items, MSC operates M-F 8am to
10pm and Sat. 8am to 4pm.
Mindi Wilson
Family Dollar is one of the most rapidly growing chains of stores in the United States
today. The main reason for this growth is that their target market is the low to low
middle-class citizens. Having the knowledge that over seventy percent of the United States
population falls into one of these categories. Family Dollar sets itsĘ prices to fit this
particular market. All items in the store are twenty dollars or less and have good
quality. The items they provide range from general housing products to small clothing
line.
Leon Brigham
Subway
http://www.subway.com
When Subway first opened, they were a pretty big hit--fast food that wasn't
greasy. Subway then realized they had a good thing going and cornered one
section of the market. The Health Conscious. Subway then introduced "7
subs with under 6 grams of Fat"--and then put their slogan on everything.
Subway also prints the nutrient information of their menu and that of
several popular fast food products on their cups and napkins. People flock
to Subway for a lighter meal.
Latrica Papes
Country Mart
www.supermarkets.com
The Country Mart value page allows customers to print coupon-generating page
from their home computer. The page is scanned at the store and it triggers
coupons when items listed on the page are purchased. Some examples of
coupons are: $1.00 off your next shopping trip or $.75 on selected items.
This marketing technique targets money-minded customers with internet
access. Shoppers who use the web will be able to get savings unavailable to
those who don't. It rewards customers for using the Internet.
Melissa Koch
The company that best describes the strategic service vision for me is a
webpage (http://www.pizzahut.com/leftnav/default8mic.htm)
that has selected supermarkets in your area. I believe that Pizza Hut has always worked
with a "service vision". They were one of the first to do home delivery, they
test market new products on a regular basis, they created the "Pizza Hut
Express" that is available in most airports for those folks in a hurry, they offer a
luncheon buffet for those on their lunch hours and don't have time to wait, and now they
are offering "online ordering". Pizza Hut has always been a strong leader in the
"pizza" business because they are working with a vision to keep their customers
satisfied.
Mary Yewell
The example for a company using a strategic service vision that I picked is Cover Girl
cosmetics. I chose this particular company because of its wide spread popularity and
success. It has focused on women with the desire to improve their image as their target
market. They have invented a lot of different beauty products aiming at women to make them
look younger, healthier, and prettier. Cover Girl is a very smart company for doing this
because society today is very concerned with their personal images.
Amy Thompson
The company that I work for "Parade of Shoes" definitely uses the strategic
service vision to help us with our overall performance. Our company started as a "buy
out" and with that, it is necessary to build your own history to increase performance
for the future. One of the key issues that we faced was determining who exactly is
"our" customer. Though obviously we target women, we needed to know what kind of
women visited and purchased from our stores. There are 3 categories of women's shoes:
Junior, Contemporary, and Missy. If our buyers don't understand the percent of each of
these 3 types bought by our customer, it could be detrimental to our sales. Demographics
plays a huge role in targeting our customer also. To help us better understand our market,
Parade uses consulting firms and several reports generated in our Corporate office to
assist in this procedure.
Anne Boss
I think that the Wal-Mart SuperCenters and HyperMarts have implemented a strategic
service vision. These stores have groceries available as well as everyday items. The
stores have all the departments: automotive, health and beauty aids, crafts, home, small
appliances, clothing, and electronics. With the grocery stores added on, families can go
in and get everything they will need in a week in one stop. These SuperCenters eliminate
making two or three stops by putting everything in one place.
Loni Heins
Disney
I chose the Disney corporation because it is a company that has been and
will be around for a very long time. Disney offers a diverse inventory
of products and entertainment. The target audience/customer is the
young and the young at heart. Disney offers a product that can be found
no where else, quality that is extended throughout each item, and
unmatched customer service.
Haley Ayers
I chose Dominos, because it is very convenient for customers here in
Emporia. It has delivery service until 3:00 a.m. and that is helpful for
students like myself that study real late or if there is a late night for
any others.
Derek Smithhisler
Payless
www.payless.com
This company has implemented a strategic service vision by targeting
money conscious consumers. Many people are not willing to pay top
dollar for the shoes they wear. Payless offers these consumers shoes
at a lower price but with up to date styles that can be bought at
larger department stores. Payless caters to the needs of the entire
family and provides customers with a selection of various styles and
sizes. They have men, women and children's tennis shoes, dress shoes
and casual shoes. The stores can be found in most malls for convenient
shopping. The Payless strategy of offering stylish shoes at a lower
price seems to be paying off.
Annette Purdon
The Company I feel matches the strategic service vision definition is Adidas. This
company is a follower to Nike, but doing tremendously well considering the competition.
They have a target market, they include stores and advertising to gather information from
their customers, they have operating strategies to support the service concept and they
have a delivery system.
Kevin Stultz
A good example of a company that has implemented a stretegic service
vision is ColorTime-Rent to Own. They target lower income people people
who cannot afford to go out and buy new appliances and furniture. These
include elderly people who are widowed or just lonely. Most of these
people who rent from color time keep coming back because of the service
and atmosphere they offer. There customers do not have to worry about
moving the product or keeping the products up. That is the service
color time offers. They get and keep customers through superior custmer
service. There sales staff deliver what the customer wants.
Bobby Jones
Kraft Foods has been a life saver for me during the college years. I
believe that Kraft has identified their target market segment as those
who do not have the time or desire to cook and do not have a lot of
money to spend on food. Customers can find a variety of quick and easy
dinners in a box that require few additional inexpensive ingredients.
Kraft has designed an operating strategy that produces powdered sauces
and seasonings that are difficult for anyone to mess up, especially
since you usually add milk, water, &/or butter. Kraft products can be
found at any grocery store, most convenience stores, and stores like
Wal-Mart and K-Mart.
Kristen Cataldi
The company I chose is Slim Fast. You can find it on line at http://www.slimfast.com. Slim Fast in geared toward
people who want to loss weight or those who just want to keep the weight off. It is an
easy product to find at grocery stores or such places as Walmart or Target. When Slim Fast
first went into business it was with a choalate powder that people had to mix themselves
with milk. They have now come up with different flavors and it is also available in
pre-maid cans. The most recent addition to this product is that it now comes in the form
of a candy bar.
Karen Banks
The company I chose was the company I work for, Glendo Corporation. We
are a company that receives calls from potential customers requesting
catalogs. When we receive the call, it gets put into the computer and a
call is schedule for 2 weeks out. When the 2 weeks come up, a salesman
calls the customer to make sure they have received the catalog and to
also see if they have any questions about any of the equipment they
could help them with. After the customer enters and order and it ships,
the salesman schedules a call to contact the customer to make sure they
received everything okay and if they have any questions. Our customers
always appreciate the calls to check on them to make sure all is well.
Michelle Beets
Quality Service is not a word that JiffyLube has not heard of before. The
President of JiffyLube, Judy Scholl makes it very clear to clients on the
web page and where ever she may go that quality customer service is the only
factor that she concentrates on day after day. The target market is the
general population who operates a vehicle. JiffyLube ensures that if the
customer is not satisfied with the service that Scholl promises a full
refund. The development of the service began with clients upcoming problems
with vehicles. "In order to have a good running car - you must make it
happy" a comment made by Judy Scholl. "Your concerns are my concerns" -
Scholl. JiffyLube is one of the fastest oil change and lube services in the
country.
Anna Jo Catterson
The company I picked for showing a strategic service vision is Ibp inc.
I have worked there for seven years in a management position and over
the last few years I have noticed that they have been purchasing a lot
of companies in the prepared foods area. They have a vision that this
area is where the future is going to be so they are positioning
themselves at the top.
Josh Harris
Baby Gap would is the store that I am going to focus on. This store is designed for any
baby. Whether it is a persons niece, nephew, brother, sister, daughter, or son this store
is designed for the baby. It focuses on the consumer with a baby in their life. They
always have a stock of products, mostly clothes and accessories and they even have an
online catalog available to order over the Internet. This company definitely has a
strategic service vision.
Cynthia Stoner
APPLE
The iMac computer has become one of the best-selling computers by addressing real consumer
needs. Apple recognized that the average consumer, who does not have extensive knowledge
about technology, really does not want too. However, they these same consumers want to
have a computer with basic knowledge. This is why the iMac is so popular with its simple
ten-minute set-up and internet access, with a space and cable-saving design.
Within the last six months, Apple introduced a new feature allowing consumers to have a
choice in the computer they want to purchase the color. The iMac is offered in five
striking colors: Strawberry, Lime, Blueberry, Tangerine, and Grape. According to Steve
Jobs, Apple’s interim CEO, "For most consumers, color is much more important
than the megahertz, gigabytes and other gibberish associated with buying a typical
PC."
Peggy Brecheisen
Microsoft Corporation
They always focus on two target market segments. There are personal user and Hardware
Company (Dell, Sun, and others). They also are target markets, which are Organization and
Institution (school).
Takaomi Suzuki
One of the best strategic service vision companies in America is Radio
Shack. I have worked for the company for two years now and seen
tremendous improvement in servicing the the customer.
Radio Shack has the best retail customer service of any other big
corporate retail company. Five years ago, if a customer needed help
with a product, they would go directly to the store and talk to the
employee that was working. As we all know, not everyone knows
everything and Radio Shack decided to provide a 1-800 number for
customers to call in and actually talk to a qualified technician
without having to go to the store. Now in about six months, the
customer will be able to communicate face to face with the technician
over the internet if they have the eye-ball camera. If they don't,
they can go to the nearest Radio Shack store and use theirs.
Rico Coppel
Hallmark uses its strategic service vision through many outlets and for
target markets within the market segment. Layouts for every Hallmark
store varies from location to location according to the customer's
needs. The main products Hallmark is known for and advertises most
frequently are cards, and special gifts it provides seasonally. The
delivery of the services and products include cards sent electronically
over the Internet. Also, gifts are delivered and ordered at the store or
on the Internet at special prices occasionally.
Michele Schiffelbein