Strategic factors: Customer
Paying attention to the voice of the customer is essential to
manage a successful business. Many companies have literally failed and shut
down because of providing products that are not customized for the customers’
needs. A customer oriented business not only achieves better, but will also
save better and run more efficiently.
As an example of a failure to accommodate customers’ needs, Netflix,
a popular provider of on-demand Internet streaming media and DVD-by-mail,
decided to isolate their services in 2011 to be run under two different departments.
The new department was called Qwikster and was in charge of their DVD-by-mail service. Since the
services were divided into essentially two branches of the company, they
decided to make prices of the services higher which outraged their customers
and caused Qwikster project to be terminated even before launching. It might
not have ruined the company entirely, but the amount of work and resources paid
in advance to start launch this new project definitely have affected the company.
The quick response to the customers’ voice avoided the company a great amount
of loss in case Qwikster actually launched and failed to meet expectations.
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