...of application architecture of CRM: Operational - automation to the basic business processes (marketing, sales, service) Analytical - support to analyze customer behavior, implements business intelligence Co operational - ensures the contact with customers (phone, email, fax, web...) To understand the real business scenario about the practice of CRM in Indian automobile industry & than compare it with MARUTI & TATA motors in passenger cars. The automobile industry in India is the tenth largest in the world with an annual production of approximately 2 million units is expected to become one of the major global automobile industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automobile industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in India exceed 100,000 units. According to Society of Indian Automobile Manufacturers in 2008-09 the cumulative growth of the Passenger Vehicles segment...
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...Daewoo Cars: Changing the Rules about How to Compete I. Introduction Daewoo-the South Korean corporation- was highly successful launched in entering the UK car market. It was successfully selling 35,000 vehicles in less of two years. This corporation continuously invests for £ 700 million in setting up a car factory in Britain, which considered to the large scale investment in design, development, and marketing and sales. In preparing the car launched, they were promoting themselves as ‘the biggest car company you’ve never heard of’. Daewoo was the second Korea’s bigger car maker and the 33rd largest business group and also has an aggressive plan for expansion and globalization. The pre-launched was stated the Daewoo presence and the market strategy in controlling the distribution chain by dealing direct customers. Daewoo’s market position was based on an innovative packaging of benefits and services around the car, a totally new approach to distribution, and the customer’s purchasing experience, and an emphasis on customer service. For evidence, Daewoo achieved 0.9 percent share of UK new car market by selling 10,000 vehicles within six month. The competitiveness in UK market car was fiercely challenging. According to the market research by Daewoo, motorist found that traditional motor dealers were not making customers feel welcome. The researches also found that one third of buyers were women. This market opportunity was used by Daewoo in implementing the...
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...General Motors: Building a Digital Loyalty network Through Demand and Supply Chain Integration Main Takeaways Although GM had experienced record sales in recent years, the stock underperformed the S&P 500 index by 48 percent, which was an indication to Rick Wagoner (CEO) that something needed to be done. Although GM saw incredible cost savings and improved productivity, I feel that they have not retained any sustained competitive advantage with respect to the competition (Honda and Toyota), in fact, one might say that they have just caught up to the competition. I believe GM is on the right path since they now have the infrastructure needed to succeed in such a competitive market but have a long way to go to excel not just at operations but as a product leader. Value Proposition Operational Excellence (arguably still not as good as foreign competition) Product Innovation (very limited to investments in OnStar and XM Satellite Radio) Customer Intimacy (best of the 3, increase in loyalty and online tools show Customer Intimacy) More in-depth Summary American Auto industry problems • GM decides to strengthen and integrate GM’s demand and supply chain systems to build the Digital Loyalty Network (DLN). It addressed 3 components o “digital” for integrating technology o “loyalty” for a focus on customers and increasing their lifetime value to GM o “network” for coordinating and leveraging all supply and distribution chain partners...
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...loss and damage portion (or more specifically, own damage/theft covers). Based on the 2009 annual report of the insurance commission and insures more than one out of every five new cars sold in the country. After it’s acquisition of Zurich General Insurance Philippines from Zurich Financial Services (ZFS), in late 2003 where it became ZFS’s cooperative partner in the Philippines. The company became one of the strongest in property insurance. It has one of the highest shares in industrial fire, at 18.7%, based on the same 2009 IC statistics. In terms of gross premiums, direct business, the company is the third largest in the country with a portfolio mix of close 69:31 with motorcar accounting for a major part of its portfolio and the balance in non-motor insurance, primarily property insurance. The company’s nationwide retail operations, catering mostly to motorcar insurance, are the most extensive and most advance in the industry. It has 42 computerized and full service branches, with underwriting and claims handling capabilities, more than 250 car dealer tie-ups, technical operations for determining repair estimates and a call center. The technical operations are supported by more than a hundred specialized and mechanics and engineers deployed all over the country, with expertise in motor car repairs and a computerized parts database for all models of popular brand vehicles. In October 2010, Global Credit...
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...Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. Further improved Supply Chain management will improve Supply Chain responsiveness and increase shareholder value to keep investors interested in the company. Ford Motor Company...
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...TOYOTA CASE STUDY Business Process Engineering And Viable System Diagnosis: Corporate Web Site Development (ISP Solutions PLC Case Study) Organizational Problem Toyota needed to redesign the company’s United Kingdom web site in order to meet new corporate guidelines. The web site had to manage content for internal corporate users, as well as for consumers. Toyota wanted to make the best use of Internet technology to enhance the consumer experience and build a closer relationship with consumers by personalizing the web site functions and keeping the web site fresh and inviting (IS Solutions, 2003). The efficient and effective delivery of content to consumers was the major goal for the web site. They also needed the site to be easy for the Toyota business users to manage. Since the web site already existed, they needed to do a major upgrade without causing the site to be down for very long. They wanted consumers to continue using the web site while the upgrades were being installed and tested, so they had to be able to do system diagnosis without disruption of the service. Relevant Approaches to the Problem IS Solutions approached the problem with an eye to the future, developing and building in the means to make changes after the foundations of the web site were established. They illustrated the possibilities for what the web site could do for consumers. They used consultant services in the areas of business analysis, technical analysis and information...
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...recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. Further improved Supply Chain management will improve Supply Chain responsiveness and increase shareholder value to keep investors interested in the company. ------------------------------------------------- Introduction Due to increase in market competition, supply chain superiority of competitors, high profitability of financially...
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...and more on shareholder value and customer responsiveness so they were looking into reengineering some of their processes which can help improve their current forecasting model and reduce OTD cycle times substantially. With new business models prevailing, Ford did not want to be left behind; they were looking at high-tech industry’s growth in the recent years and thought if they could implement some these ideas to their business. Ford has always been a forerunner in employing technology to overcome its constraints of information flow between its global manufacturing sites, they wanted to implement a similar I.T solution to get the better of its suppliers. But having such a large supplier base was making it difficult to manage; then they looked at high tech industry’s leading player DELL who was not only growing phenomenally every year but was also successful in building proximity to both its suppliers and customers. A comparative analysis of Ford and Dell’s SCM operation helps understand the differences in their organizational models and find strategies that could be applied for Ford’s success. Different areas like supplier management, sales, inventory management and customer experience have been compared to identify the bottlenecks in Ford’s operation. Like Dell, Ford can utilize IT systems to leverage its supplier relationships and bring value to the customer The case derives to conclusion that Ford cannot adapt to virtual integration completely except for some key areas which...
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...Data Analytics: A Marketing Segmentation Case Study T. Evgeniou, INSEAD J. Niessing, INSEAD The Iterative Process Cycle Data Preparation & Exploration Analysis Goal of Analysis Performance Assessment Segmentation Methodology – A(nother) Process 1 2 3 4 5 6 Identify Business Issues Clarify Scope and Dimensions Generate and Refine Hypotheses Decide on Data to use / Collect Needed Data Build the Segmentation Framework Link to Marketing & Business Strategy A Segmentation (micro-)Process • Segmentation solution is created through a rigorous and iterative process Data Processing/ Factor Analysis Cluster analyses Review and refine Why Segmentation? • SEGMENTATION is a critical enabler to achieve business objectives and realize benefits • SEGMENTATION is critical to identify white spaces for new products/offerings • SEGMENTATION helps organizations to optimize their retention and acquisition strategy • SEGMENTATION is often used to optimize pricing across different products • SEGMENTATION enables organizations to become more customercentric • MARKET DYNAMICS make segmentation critical to business success. Questions You Might Hear… These are only some of the issues that clients may raise that clue you in to appropriateness of segmentation Growth & New Opportunities Market Structure Product Development Channel Deployment Resource Allocation Retention...
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...of complexity blended with other internal and external factors have made Ford realize they need to explore solutions to deal with the supply chain challenges leading to cost and the reality they are facing and may continue to face in the future. The majority of issues in Ford’s present chain result from inefficient control of their large supplier base and the complexity of their supplier network in addition to inability to communicate to server their end customers. Ford has realized the urgent need to change their supply chain in order to be more cost effective and more profitable for its shareholders. Since Dell and Ford are two different types of markets, one is in the computer manufacturing/distribution business and the other is in the automobile business, it does not seem right for Ford to implement the exact “virtual integration model” deployed by Dell. The fact the car buyer usually wants to touch and feel the car before they make a purchase of a car would put Ford at risk of losing their customers to the competitors. On the other hand when customers buy computers on-line they don’t have to worry about touching and testing the computers and they require a better price than the other retail avenues to buy computers. Some other considerations in this case are the consideration of the buying frequency of cars versus computers and financing requirements for a car versus a computer. Another consideration would be the number of suppliers to support Ford manufacturing versus...
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...OPERATIONS MANAGEMENT REPORT ON 1 INDEX * Introduction ………………………………………………………………………………3 * 2 INTRODUCTION COMPANY PROFILE Volkswagen is a manufacturer of passenger and commercial vehicles. The company markets its cars under the following Brands: Volkswagen, Skoda, Bentley, Bugatti, Audi, Seat and Lamborghini. The company is headquartered in Wolfsburg, Germany and employs about 300,100 people. The Group operates 106 production plants in 19 European countries and a further eight countries in the Americas, Asia and Africa. Every weekday, 572,800 employees contribute to produce cars, to keep continuous relationships with customers, suppliers and partners in 153 countries. Volkswagen is a manufacturer of passenger and commercial vehicles. The company’s key products and services include the following: Products: Passenger cars Vans Light trucks Buses Pick ups Campers Brands: Volkswagen Audi SEAT Lamborghini Skoda Bentley Bugatti Some of the company’s data are given below: (* this data is for Volkswagen AG only) Revenues by Geography: Europe, Volkswagen’s largest geographical market, accounted for 44.1% of the total revenues in the fiscal year 2006. Revenues from Europe reached €46,211 million in 2006, an increase of 9.4% over 2005. Germany accounted for 27.2% of the total revenues in the fiscal year 2006. Revenues from Germany reached €28,544 million in 2006, an increase of 10.5% over 2005. North America accounted for...
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...prospects of the worldwide automotive industry. In this year’s survey, 200 senior executives from the world’s leading automotive companies were interviewed, including automakers, suppliers, dealers, financial service providers, and for the first time mobility service providers. The responses make for compelling reading and we would like to thank all those who participated for giving us their valuable time. We would also like to acknowledge and thank the following senior executives who participated in in-depth interviews to provide further insight: (Listed alphabetically by organization name) Dr. André Stoffels Head of Strategy Audi Steven Bridgeland Senior Product Manager, Windows Embedded Microsoft Special thanks to Moritz Pawelke, Meghan Bested and Martha Collyer for their efforts. © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved. Foreword Imagine the following scenario, involving an urban dweller, possibly living in a mega-city like Beijing, Sao Paulo, New York, London or Mumbai. As she walks out of her apartment, her smartphone directs her to the nearest available shared electric car, unlocks the door and starts the engine. Once inside, she gets an immediate report on traffic conditions and train times, voice messages from email and a sample from her favorite band’s...
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...A Grounded Exploration of Sales and Distribution Channel Structures in Thirteen Industries in India Leading to a Classification Scheme Dr Prathap Oburai, Marketing Area, Indian Institute of Management, Ahmedabad, India. Email: prathap@iimahd.ernet.in, prathapoburai@yahoo.co.in Phone: 0091-79- 2632 4942 Professor Michael J Baker. University of Strathclyde, Glasgow, United Kingdom This paper is a revised version of a competitive paper reviewed and accepted for presentation at the Academy of Marketing 2004 conference, July 06-09, Cheltenham, University of Gloucestershire Business School, England, United Kingdom 1 A Grounded Exploration of Sales and Distribution Channel Structures in Thirteen Industries in India Leading to a Classification Scheme Abstract Innovation is a fundamental virtue of marketing. In this paper, a case is made to promote the use of innovative and novel combinations of research methodologies to derive new insights of business phenomena. This study is an attempt to understand and explain the sales and distribution channel structures in thirteen different industries in India. The investigation adopted a mix of case research and grounded theoretic research methodologies in exploring the subject under scrutiny. The study offers a classification scheme for grouping marketing channels into homogenous clusters based on similarity/dissimilarity using multivariate multidimensional mapping techniques. This scheme offers to explain the...
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...execute its own promises but also on whether visible or hidden partners deliver on their promises too. In other words, company’s success depends not just on its own efforts but also on the ability, willingness, and likelihood that the partners that make up its innovation ecosystem succeed as well. Thus, a new perspective must be adopted, a wide lens, with which to assess a company strategy using a new set of tools and frameworks that will expose a company hidden sources of dependence. The Innovation Behind Spot and Avoidable Failure Although great execution is a necessary condition for success, it is not enough. Indeed, while the execution focus draws attention to important aspects of a company strategy (developing customer insight, building core competencies, and beating the competition), it creates a blind spot that hides key dependencies that are equally important in determining success and failure. Examples: Philips Electronics despite sterling execution and rave reviews, Philips's high-definition TV flopped, because its value creation depended on other innovations (the high-definition cameras and transmission standards necessary to make high-definition TV work) that failed to arrive on time. Sony it launched its e-reader to market before its rivals but even a great e-reader cannot succeed in a market where customers have no easy access to e-books. Johnson Controls it developed a new generation of electrical switches and sensors, but until architects, electricians...
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...established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches...
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