Profitable Business Models and Market Creation †Free Samples

Question: Discuss about the Profitable Business Models and Market Creation. Answer: Introduction: During the transformation, as the business amalgamates from the five different resorts into one business units, Monet, various assumptions were made. Among others included; the merging of the firms will cause an inevitable improvement in the quality of services rendered to the customers. As seen in the executive summary, improving services was one of the primary basic goals of the merging, implying that the firm directly assumed that there is going to be a guaranteed improvement on service delivery. It is also assumed that the amalgamation of the firms into one business unit will ultimately lead to an increase in the sales and revenue of the new big business. The new company is expected to enjoy economies of scale which include managerial economies of scale, research economies of scale and many others which are characteristic advantages enjoyed by large firms. It is also expected that the operational cost of the firm will go down as a result of the merging. The cost efficient strategies being adopted by the firm will help in reducing the total costs incurred by the business. The development of a single website will perfectly and effectively manage the customer bookings, while the customers will be able to perfectly operate the new mobile application developed for the company (Chen, Hsu, Tzeng, 2011, p.920) As a result of merging, it is assumed that the level of risks and uncertainties will considerably reduce. Some of the risks such as high levels of competitions, inability to meet the financial demands of the company are all expected to be curbed. This therefore implies that the business is expected to progressively and steadily improve and expand its operations. In the course of the merging, it is expected there will be a tremendous improvement in the level of technology which will improve on the business efficiency of the new company (Chiu, W. Y., Tzeng, Li, 2013, p.50). Critique of the final decision reached by the senior management of Monet This part of the report is intended to provide a detailed evaluation and analysis of the management decision in merging into one big company. This will help in drawing of the recommendations that can be used for the firms future effective operations and expansion. Customer loyalty scheme (monetLoyalty); Monets decision to create a customer loyalty scheme (Monet loyalty) will considerably boost and increase on the company sales. literature reports by various research conducted in customer care indicate that customers are always willing to come back for as long as they get high quality services accompanied by a friendly customer personnel (Mircea, Ghilic Stoica, 2011, p.50). This therefore implies that Monets decision to organize and design a specific team to handle the customers is a good decision towards boosting and increasing the company sales. It is however very important that the company considers the communication skills and strategies to be used by the customer department. It should equip the team with the best skills on handling customers from a cross-cultural environment. The ability of the customer care team to provide free tours is one of the promotional strategies that can be used by the company to attract new customers. It is ther efore vital for Monet to create a customer loyalty scheme (Seelos, Mair, 2007 p.60). Developing of interactive tools to provide choice to customers; a decision on developing interactive tools to help customers choose a particular tour they would wish to take is very vital to the company. This is a stronger way of creating product differentiation in the business world. By the company being able to offer services that are not usual to other competitors, Monet has a high prospect of attracting new customers to their business. The interactive tools provide the customers with a diverse experience to take on their sovereignty. This is also a good strategy for the expansion of the business. To a great extent however, this strategy may not work if it is not analytically designed to meet the customers expectations. It is therefore important that the development team conducts a thorough research to find out the needs and choices of the customers. Developing an integrated ERP solution; the companys decision to develop an integrated Enterprise resource planning (ERP) software is the most crucial decision it is undertaking. ERP is a multi-functional management software used for the general optimization of the business operations. ERP is a software that manages a series of interconnected company applications. The decision taken by the company to develop ERP is very important as it will determine business efficiency. When choosing to design ERP, the software base should be put into consideration, that is to say whether cloud based or offline based. This decision will be determined in relation to the security sensitivity. The company should endeavor to utilize the most efficient and latest technology when developing the software. This is because, its failure to have a well-designed ERP will consequently lead to non-effective performance, ultimately leading to losses which may be finance based of company vital information (Schiffaue rova, Thomson, 2006, p.550) Developing an ultra-intelligent electronic portal; this will enable the company customers to directly place their orders from their places of residences. Through the company website, clients will also be able to directly contact the business support team for live help. This implies that the platform will play a great role of linking the customers to the company. Today, businesses have adopted well-designed and user friendly websites for their clients to manage their own accounts. Through the ultra-intelligent portal, the users can also be able to make their payments online. This is an advantage to the company as the hectic costly manpower will be reduced. However, Monet should consider developing a user friendly websites that will suit the needs of the clients. The company should be able to monitor fraud websites as it may lead to loss of customers. Situations where customers lose their money to fraud websites as a result of cyber scam (Wang, Tzeng, 2012, p.5600) Today, most businesses are seeking to expand and gain a large market share in the industry/ market in which it deals in. they aim at outcompeting their rivals by gaining financial stability needed in the operations of the firm, improving the level of production. In this case, the decision taken by Monet to merge may provide an advantage in tax reductions and tax benefits from the government. It is absolutely true that bigger firms have a tax levy advantage as compared to the small firms. It is therefore important for the firm to merge into one company to reduce the tax levels (Gorla, Somers, Wong, 2010, p.215) As a result of merging, the firm is likely to gain a competitive advantage other small businesses operating in the same industry. When capital is pooled together, it makes it hard for the new firms to enter into the market. This will offer Monet a monopolistic advantage which will in turn lead to abnormal profits. However, The difference between information technology and information system. To a lay man, information system and information technology can be used to mean the same i.e. it is often used interchangeably. However, the two terms, information system (IF) and information technology (IT) differ in meaning. Information technology can primarily be understood as the study, management, design, support and implementation of computer based data/ information systems. It mainly involves the use of computer software, hardware, databases and networking among various computers in the field of information system. In other words, information technology is typically computer based processing of information and it involves the use of technology in the creation, manipulation, distribution, and dissemination of information (Husted et al. 2006, p.80). On the other hand, information system (IS) is a general term used to refer to the processes and people designed to create, manipulate, distribute, store, disseminate and distribute information. For a clearer understanding, information technology can be referred to as a subset of information system implying that all processes and activities involved in information technology is under information system (Montibeller, Gummer, Tumidei, 2006, p.10). In todays business world, information technology plays a leading role in influencing customers choice, patronage and brand loyalty. Businesses use information technology as the primary medium of getting in touch with its customers. Advertisement gives a clear evidence of the extent to which technology is playing when it comes to influencing customer choice. Research findings indicate that the most successful businesses are employing high levels of technology in advertisement. Customers can easily be persuaded on line customers can easily be persuaded and influenced to follow pop-ups and ads in the websites, through technology, the company can always contact the customers in attempt to persuade their interest into the products, customers are also able to make reviews of the products they purchase (Prajogo, Sohal, 2006, p.310). Basing on the subsequent information, Monet Company can use extensive information technology systems in persuading new customers through television, radios, online ads and popups, among others. The company can also use information of the existing customers in contacting them directly to find out their experience with the company (Naik et al., 2010, p.231). In other words, Monet can make use of the mobile application as a media for customers to make reviews. In this way, the business will adjust according to customers experience and expectations. However, Monets decision to extensively use technology in engaging customers and maintaining the customer loyalty should consider the threats that are likely to come up. This may be inform of fraud websites that may negatively impact on the company reputation. Recommendation/ Suggestion on how to attract new customers Offering of discounts to both new and old customers. This will induce the spirit of customer loyalty. Given the fact that consumers/ customers always prefer to maximize utility from their available income, clients will always seek for places where they gain maximum satisfactions (Dehning, Richardson, Zmud, 2007, p.820). For example for the company to induce online orders and bookings, the management can take up a decision of offering a certain percentage discounts to customers who use online bookings for as long as the discount does not affect the companys performance. Most of the customers will wish to enjoy the discounts and therefore automatically induced to use online services (Sahibudin, 2008, p.750). The business should also consider establishing new premises in areas with more favorable demographic information as far as their customer base is concerned. Some businesses gain more revenues as a result of strategic/ proximity location of the business. For example, hotels and res orts require places with few inconveniences in terms of traffic congestions. Other strategies may include customer follow ups. Depending on the target market the company can choose to sponsor an event where it identifies its potential class of customers. Currently, many organizations are sponsoring events as a way of reaching the public about the availability of their products and the type of services offered. The events that Monet intends to sponsor should be in line with the target customers. Use of social media advertising. In todays business world, social media plays a graet role in promoting companies reputation and market share. A social media c=account can be created where all updates of the upcoming invents are posted to help the clients keep up to date with the company activities. Through social media, the company can also get direct feedback from the clients regarding the services offered. This can be an adjustment point for the company in relation to the taste and preference of the customers. The most prevalence platforms that the company can make use of include; Facebook, twitter, and emailing of old customers among others. Making of billboards and smart flyers (Sakao, Shimomura, 2007, p.592). The company can improve on its prevalence in the market by making use of public billboards to target a large audience for example in the streets and main roads. This will create an insight in the potential customers to visit the company outlets (Romm, 2014). To so extent, the company can make use of local means by printing smart flyers that are distributed to the local population. References Cartwright, S., Schoenberg, R. (2006). Thirty years of mergers and acquisitions research: Recent advances and future opportunities.British journal of management,17(S1). Chen, F. H., Hsu, T. S., Tzeng, G. H. (2011). 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