Customer Value, Strategic PositioningAdriana Alvarado has decided to purchase a personal computer. She hasnarrowed the choices to two: Drantex (ad Confiar. Both brands have thesame processing speed, 6.4 gigabytes of hard-disk capacity, two USBports, and a DVDRW drive, and each comes with the same basic softwaresupport package. Both come from mail-order companies with goodreputations. The selling price for each is identical. After some review,Adriana discovers that the cost of operating and maintaining Drantexover a 3-year period is estimated to be $300. For Confiar, the operatingand maintenance cost is $600. The sales agent for Drantex emphasizedthe lower operating and maintenance costs. The agent for Confiar,however, emphasized the service reputation of the product and thefaster delivery time (Confiar can be purchased and delivered 1 weeksooner than Drantex). Based on all the information, Adriana has decidedto bur Confiar. Required:1. What is the total product purchased by Adriana?2. CONCEPTUAL CONNECTION How does the strategic positioningdiffer for the two companies?3. CONCEPTUAL CONNECTION When asked why she decided tobuy Confiar, Adriana responded, "I think that Confiar offers morevalue than Drantex." What are the possible sources of this greatervalue? What implications does this have for the managerialaccounting information system?4. CONCEPTUAL CONNECTION Suppose that Adriana's decisionwas prompted mostly by the desire to receive the computerquickly. Informed that it was losing sales because of the longertime to produce and deliver its products, the management of thecompany producing Drantex Lecided to improve deliveryperformance by improving its internal processes. Theseimprovements decreased the number of defective units and thetime required to produce its product. Consequently, delivery timeand costs both decreased, and the company was able to lower itsprices on Drantex. Explain how these actions translate intostrengthening the competitive position of the Drantes PC relativeto the Confiar PC. Also discuss the implications for the managerialaccounting information system.
Customer Value, Strategic Positioning
Adriana Alvarado has decided to purchase a personal computer. She has
narrowed the choices to two: Drantex (ad Confiar. Both brands have the
same processing speed, 6.4 gigabytes of hard-disk capacity, two USB
ports, and a DVDRW drive, and each comes with the same basic software
support package. Both come from mail-order companies with good
reputations. The selling price for each is identical. After some review,
Adriana discovers that the cost of operating and maintaining Drantex
over a 3-year period is estimated to be $300. For Confiar, the operating
and maintenance cost is $600. The sales agent for Drantex emphasized
the lower operating and maintenance costs. The agent for Confiar,
however, emphasized the service reputation of the product and the
faster delivery time (Confiar can be purchased and delivered 1 week
sooner than Drantex). Based on all the information, Adriana has decided
to bur Confiar.
Required:
1. What is the total product purchased by Adriana?
2. CONCEPTUAL CONNECTION How does the strategic positioning
differ for the two companies?
3. CONCEPTUAL CONNECTION When asked why she decided to
buy Confiar, Adriana responded, "I think that Confiar offers more
value than Drantex." What are the possible sources of this greater
value? What implications does this have for the managerial
accounting information system?
4. CONCEPTUAL CONNECTION Suppose that Adriana's decision
was prompted mostly by the desire to receive the computer
quickly. Informed that it was losing sales because of the longer
time to produce and deliver its products, the management of the
company producing Drantex Lecided to improve delivery
performance by improving its internal processes. These
improvements decreased the number of defective units and the
time required to produce its product. Consequently, delivery time
and costs both decreased, and the company was able to lower its
prices on Drantex. Explain how these actions translate into
strengthening the competitive position of the Drantes PC relative
to the Confiar PC. Also discuss the implications for the managerial
accounting information system.
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