How the Customers Influence Business Strategy - 1039 Words

How the Customer influences Business Strategy A business strategy describe how a particular business intends to success in its chosen market place against its competitors. It therefore represents the best attempt that the management can make at defining and securing the future of that business. A business strategy should provide clear answer to the questions: - What is the scope of the business to which this strategy applies? - What are the current and future needs of customers and potential customers of this business? - What are the distinctive capabilities or unique competence that will give us competitive advantages in meeting these needs now and in the future? - What in broad terms needs to be done to secure the future of our†¦show more content†¦Everybody of the customer experience is of central strategic value to the organization. The company which thinks that customer experiences is just a matter of improving a few select business process will always lag behind competitors who are making customer experience a core competency of the entire organization. Customer satisfaction is another important fact to be considered. It is widely accepted that delivering products and services of high quality leads to customer satisfaction and in turn to high profit. In order to improve their competitive position, many companies use form of customer satisfaction program in developing , monitoring and evaluating their products and services, formulate strategies to enhance satisfaction and compensate employees based on satisfaction rating. Companies, however, will allocate resources for improving customers satisfaction only if the effects are satisfying in financial terms. Numerous empirical studies could find a positive relationship between customer satisfaction and profitability. Customer satisfaction leads to repurchase. The continuously repurchase of a company’s product results in a stable relationship between customers and suppliers. A large stable customers based reduces the volatility of the cash flows. The lower volatility of the cash flows also leads to a lower cost of capital. Customers’ satisfaction also leads to cross-selling. EnhanceShow MoreRelatedOperational Strategies That Management May Use to Respond to Influences on Operations 1168 Words   |  5 Pagesoperations process is one of the key business functions and is a crucial component to business success. Like every business, Qantas is affected by many internal and external influences requiring it to have effective strategies to respond to these influences. Businesses that are able to adopt and utilise effective operational strategies are able to quickly adapt and either reduce or take advantage of these influences that impact the business. 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