Decent Essays
1. Otis has been the market leader in both sales and service segments. Consider the time when OTISLINE was just being conceived. Why do they need to do anything at all, and that too in the service sector? Higher Margins in Services-Elevator industry was highly competitive with players comprising Otis, Westinghouse, Dover, Montgomery, Schindler, U.S. Elevator and Fujitec. Otis was the industry leader in sales and service. The manufacturing companies were more focused on getting service contract rather than sales because the income proportion was substantially high in services as compare to sales. Also due to price wars in Sales, the margin was lower while services accounted for greater profit margin Direct correlation between…show more content…
Implementation of Otisline would lead to high quality service, minimize response time and decrease operation cost for the organization which would provide Otis a competitive edge over it’s competitors. 3. What would be the risks associated with OTISLINE? How did they try to take care of those? Risks associated with Otis line and its implementation are- • Cost overrun : Due to its strategic nature, a large share of IT budget was allocated to Otis line. The data center budget was also propped up to support Otis line. Also huge costs had to be incurred for training highly skilled dispatchers. Hence if Otis line does not succeed in getting customer satisfaction & new sales, it would lead to huge financial loss for the firm. Otis has properly planned and phased its implementation in part so that based on initial success/failure, it can decide to expand. • Threat of Competitors: Since there is nothing breakthrough about Otis line, its very easy for other competitors to adopt & improve the Otisline system. To counter this, Otis has leveraged Otisline to implement NES (new equipment sales) application which would help them get new customers. Also it has marketed its service philosophy of responsiveness, reliability, innovation, communication, and teamwork and customer satisfaction and improved upon it. • Concerns of Field office managers: Field office managers were concerned that Otisline system would decrease their control over dispatching of service
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