Question

International Business

Question 1.

Rank the seven elements of value creation in the short term (1-2 years), middle term (3 -5 years) and long term (5+ years). Describe why you have ranked the top two elements in each term.

Answer 1

Value Creation: The product or service is already existing or newly launched or is going to be launched. What should the organization do in order attract maximum customer and have a maximum reach?

The organization follows strategies based on the planning and objective.The objective may vary depending upon what the organization has planned for short term, medium term and long term. The strategies planned and followed creates value for the product and service.

The basic elements for value creations that are followed by the organization are :

1) Market research and analysis

2) Market segmentation

3) Product and Service planning

4) Advertising and Branding

5) Pricing

6) Supply Chain

7) Customer Service and Customer Relationship Management

Ranking of elements for short term (1-2 years): (1) Advertising and Branding (2) Pricing (3) Market Segmentation

(4) Market research and analysis (5) Product and Service planning (6) Supply Chain (7) Customer Service and Customer Relationship Management

In this short term it is important to make the people aware of the product and service. It is phase where product grows in the market. People from all parts should know about the product and once they are aware of it then they will be inclined to atleast try once which further can lead to loyalty.

Middle Term (3-5 years): (1) Advertising and Branding (2) Market Segmentation (3) Market research and analysis (4) Product and Service Planning (5) Pricing (6) Supply Chain (7) Customer Service and Customer Relationship Management  

The medium term means that the product is alive in the market and most people know about it however the competition in the market is tough and thus advertising and branding becomes a continuous strategy to remind people of the product and service. Also not everyone would be interested in buying the product thus targetting of customer is main target now.

Long Term (5+ years): (1) Customer Service and Customer Relationship management (2) Product and Service planning (3) Pricing (4) Supply Chain (5)Market research and analysis (6) market Segmentation (7) Advertising and Branding

Here in the long term, the product is already established however it is very important for the organization to see if any modification can be done to cater to a different set of customers apart from the existing ones. Thus product and servicing is important.

At this point the organization must try to retain the customers by providing customer service and maintaining the relationship with the customers. A good customer service is always remebered and the sales staff's customer relationship does the work of advertisement through words of mouth.