Miele Case Study

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

Capabilities: Schmitz (2012) refers to capabilities as “what the organization can do” to effectively utilize its resources. Some examples of Raytheon’s capabilities are Raytheon’s Six Sigma progress, integrated supply chain management, and a variety of technological capabilities. Raytheon’s Six Sigma is “a disciplined, knowledge-based approach designed to increase

If you want to buy more appliances, then “Store name” is also a great store to visit. And, don’t worry about the prices; we have got you covered with our special deals and offers.

Capabilities refer to a firm’s skill in using its resources to create goods and services. During the 1970s and 1980s, Westlake lanes hosted a steady stream of family bowlers and birthday parties. Mr. Sugar also cultivated popular bowling leagues, 32 weeks in duration, for his Raleigh friends and neighbours. However, the capabilities of Westlake lanes can be described as a commodity that can be readily found.

For a business to be successful and have a competitive advantage, it is important to evaluate the company’s resources and capabilities (Pitt & Koufopoulos, 2012). Resources in a company are the productive assets owned (tangible or intangible) whereas capabilities are what the company can do with this (Grant, 2010). “Establishing competitive

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

Blain Kitchenware, Inc. (BKI), founded in 1927, is a mid-sized producer of small appliances for residential kitchens. BKI has an approximate 10% market share of the $2.3 billion U.S. market for small kitchen appliances, with 65% of sales originating from the US market. The company is public since 1994, and the majority of the shares is controlled by the founder's family (62% of outstanding shares), who also have a strong representation in the board of directors. Mr. Dubinski - the CEO since 1992 and great-grandson of one of the founders, successfully completed an IPO in 1994 and gradually moved the production abroad in the early 90s. BIK`s current strategy is to complement its

* Merloni Elettrodomestici SpA is an Italian company based in Fabriano and is one of Europe’s biggest makers of domestic appliances.

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

First of all, Pensonic enjoys a well-known brand name and high reputation for reliable quality and first-rate customer service. Pursuing the service policy that “Your Enjoy” and “build good impression”, It wins high recognition and customer satisfaction. And Pensonic already became the first choice of small home appliance when customer purchased in Malaysia.

A consolidated industry with less than 10 companies controlling 50% of the total market. Slow growth pace hence making competition tougher Three major segments: Low price, Mid price, Very high price Major players:Electrolux,G.E,Maytag,Whirlpool etc.

These minor details are what set Electrolux apart from the competition. The company’s ability to function as a team allowed them to gain different perspectives and create in a shorter time period than the rest. The case study proves that when it comes to the consumers, they do not care about price as much as they do effectiveness. If the product gives the consumer exactly what they need and want, they are more than willing to pay the price. A company’s success depends solely on each department’s ability to function as one and without teamwork this task is impossible.

Sureshchandra, Rajendran and Anantharaman (2002) identified five critical aspects of service quality from the customers point of view namely core service/service product, human element of service delivery, systematisation of service delivery, tangibles of service and lastly social responsibility in order to conceptualise service quality. Table 1 will further provide an explanation to the five critical aspects of service quality as outlined by Sureshchandra et al (2002).

Time Saving - Longtime use of appliances - - Chicken-egg problem (price vs. High technology- ideally for the volume) technically affine Indian people - Wide product range from high-end to basic models with different categories Opportunities - Threats New, diverse target groups in India - Trends in society (Health available (men in the kitchen in general, bachelors, students, young in food industry, doubts of women etc.) - consciousness, slow movement trend microwave radiation)

Capabilities refer to the firm 's ability to utilize its resources effectively. Capabilities according to Porter are embedded in the routines of an organization. They are not easily documented as procedures and this makes it difficult for competitors to replicate. A firm 's resources and capabilities together form its distinctive competencies. These competencies Porter Explained enable innovation; efficiency, quality, and customer responsiveness, all of which can be leveraged to create a cost advantage or a differentiation advantage. Porter further argued that in order for a firm to develop a competitive