Case: Purolator Courier Ltd. Case Solution
Outside-in readiness of Purolator
The senior management of the company always intends to improve the business through identifying issue internally or externally via market condition. The customer behaviors and taste change over time so that the company has to be very adaptable in changing environment. Purolator has invest funds in improve their processes and controls in order to enhance the efficiency.
In addition to this the company also runs the ongoing analysis of customer base to improve the services provided to them. Recently the company have investigate over the reduction of revenue the internal analysis found that the company’s information system if out dated and not working in a good condition which leads to increased cost and reduced revenue. This investigation solely based on internal analysis to find the reduction in revenue.
The company can evaluate customer perspective as the less customer confidence might be the reason of less revenue. The company’s leadership was changed recently. The new CEO of the company adopted the strategy to reduce the cost and enhance profitability. The reduction in cost means that the company will conduct low marketing budget, less promotional activities and fewer customer offers and discounts.
Although the new strategy will enhance the profits of the company in short term but it will not be successful in long term as it losses customer confidence and resulting lower reputation. The decentralized structure of the company enhances the customer value as the lower level branch manager can take strategic decision which suits the customer best.
Outside-in readiness of Threadless
From the customer perspective the company is great for providing improved services by taking customer’s feedback. The company’s business process is other than any traditional textile company as the threadless provides the customer base a website where the customer shares their views, opinions and expectations. (Gray, 2016)
The company conducted the weekly design competitions to gather the data and information about the customer’s needs and demands. The better customer interaction through blogging section of website leads to better deal with customer. The company can sell those T-shirt which are popular among the customer base.
The double digit growth rate in revenue indicates that the company has performing well in its core objective and the company not only retains the customer base but also attracts new customers as well. The main advantage of internet based company is the rapid access to market conditions which assist in the marketing and pricing strategies of the company. (NEWMAN, 2016)
Assessment of organization Purolator or Threadless is in the best position to deliver value to their customers:
Both companies are performing well in its core objective as both generate reasonable revenues and profitability for their founders or shareholders. However both companies businesses and strategies to do business are totally different from each other.
In order to improve the sales effectiveness the Purolator Company initiated to invest large funds on skills and sales training. The improved sales staff can deal better with existing and prospective customer base. Although the company invests funds to improve processes efficiency but the increase in pricing strategy will leads to value destroying for the company. The company increases their prices of the service without taking feedback from the customer.
At the same time the Threadless Company produces and sells those products which are popular and trending which turn in existing customer loyalty and prospective customer attraction towards the company. The pricing are also depends upon the customer feedback and responses which leads to optimum level of sales volume for the company. Therefore the position of Threadless is better than the Purolator to deliver value to the customer......................
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