Meditech - Case 1

1660 Words Feb 12th, 2015 7 Pages
EMC2
Delivering Customer Centricity
An Analysis

Analysis: EMC2: Delivering Customer Centricity

This paper is an analysis of the article EMC2: Delivering Customer Centricity; by Thomas Steenburgh and Jill Avery (2011), Harvard Business School.

EMC Corporation has had a long and storied relationship with its approach to customer service. For most of the last thirty years, the customer has been front and center in the company’s strategy to achieve the leadership position in the data storage market, but it did not begin that way. In 1987, prior to the full customer centric commitment, as EMC was expanding into disk drives and memory cards, sales personnel knowingly shipped defective products in order to meet sales quotas; hardly
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This attitude spawned the realization in the customer’s mind that EMC was not a vendor, but a strategic partner.

The customer centric focus has been wildly successful for EMC. By 1997, EMC lead the mainframe storage market with a 43% share, which came at the expense of IBM, who went from 48% to 30% in four years. By 1999, 80% of sales were to repeat customers. By 2000, 18% of the EMC workforce was customer service; EMC enjoyed a 75% market share for data storage and 98% of the Fortune 100 companies were EMC customers. By 2001, EMC achieved 99% customer retention. Probably the most convincing evidence comes from customer Bret Fuller, Senior Vice President at Oracle: “EMC has a partnership mentality and an understanding of the criticality of getting in and resolving issues quickly”.

The customer centric initiative had become a competitive advantage and contributed to a large portion of EMC’s success. It will be equally important going forward, but the company will have to adapt to some diffusion, which is likely to occur with the transformation of product lines and the adoption of online tools to service the customer.

From 1993 to 2000, EMC made eight acquisitions; mostly data storage and data storage software (Exhibit 3). From 2000 to 2007 EMC made twenty – nine acquisitions ranging from data storage to security software, enterprise software, and content management software. EMC began

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