COMM 315 Chapter Notes - Chapter 4: Management System, Bargaining Power, Ikea
1 May 2015
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In terms of customers, when selecting a business-level strategy the firm determines (1) who will be served, (2) what needs those target customers have that it will satisfy, and (3) how those needs will be satisfied. Effectively managing relationships with customers: the firm"s relationships with its customers are strengthened when it delivers superior value to them. Strong interactive relationships with customers often provide the foundation for the firm"s efforts to profitably serve customers" unique needs: anticipate customers" needs. Firms" relationships with customers are characterized by 3 dimensions: Reach, richness and affiliation: reach: concerned with the firm"s access and connection to customers. Viewing the world through the customer"s eyes and constantly seeking ways to create more value for the customer have positive effects in terms of affiliation. The purpose of a business-level strategy: the purpose of a business-level strategy is to create differences between the firm"s position and those of its competitors.
