Chapter 15, Problem 1CTQ

Summary Introduction

Case summary:

The Company C is a retailer that offers certain unique and unusual products which is more expensive but in good quality. Company C carrying only lesser amount of products than its competitors. It prefers only name brand products and some luxury products.

The Company C offers best prices for everything and try to be a toughest negotiator in the business. The Company reached the financial success through lower inventory turnover rate. The selling of fast moving goods leads the company in to merchandise than its competitors. The employees of the company are highly productive and loyal to the company because of higher wages and array of benefits. This also leads to reduce the cost.

The Company C is moving in to fourth decade with a leading market position strong financial performance, millions of satisfied customers and greater annual sales.

To discuss: Whether Company C brings the products which are in low quality and high price by the recommendation of customers.

Explanation of Solution

The Company C will not bring the products recommended by the customers. The product is under quality and high expensive so it will leads to destroy the comfort zone of the company. If the company decided to bring that product, then the company loss its position of competitive advantage over high product quality and low price.

The Company C want to focus the needs of potential customers and they are not interested to lose the position of competitive advantage over its competitor’s. According to Person X’s point of view while introducing customer recommended high expensive products will lead to losing competitive advantage. The risk of losing competitive advantage are the following:

• Losing employees to your competitors
• Losing customers to your competitors
• Failing to attract the best talent to your organization
• Missing out on opportunities that competitors can capitalize on