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Running head: CONSULTING PROJECT1Condulting Project Sara Maboodi (1710405)University Canada WestProfessor: Dr. Michele Vincenti Ph.D.BUSI 640: Consulting Practice16thMarch 2019
CONSULTING PROJECT2Strategic option 1: Price adjustment for Market Penetration Price adjustment is considered as that kind of price which can attract the customers (Maguire, 2018). The mentioned strategy can be measured as one beneficial strategy as the company does not have enough customer in tier one city due to having not reasonable fare.With applying price adjustment the company can enhance the level of sales owing to decreasing the price and get the attention of potential customers especially in tier one city.Also the organization can take advantage of save money to allocate the other issues in the company. Although applying the price adjustment strategy is helpful, there are several critical factors for the success of this strategy. It is essential for the company to make sure it has enough supply to respond to the demand since due to decrees the price many customers might attract to use the company's service. So, the company has to make sure if it has enough drivers to meet the customer's need. Otherwise, the company might face the shortages of supply which can lead to being unsuccessful for responding customer's need (Riley, 2017). There are also several risks associated with applying price adjustment strategy. Price adjustment can be a beneficial tactic to enter the market, but it may make customers worry about the quality of products due to sudden decrease of the fare.
CONSULTING PROJECT3According to what our consulting team discusses about them mentioned strategy, the team decided not to apply price adjustment strategy. Strategic option2: Cost Leadership StrategyCost leadership strategy can be another potential strategy for the company. The mentioned strategy is referred to the kind of strategy which allows company to have low price for their products while maintaining the level of productivity and efficacy. Since the company now has strong competitors, it might be vital for the organization to implement that kind of strategy for not fading from the market (Wada, 2018).Implementing the mentioned strategy let the company has higher profitability. Also, the cost leadership strategy can provide more sustainable position for the company since during recession and bad economic situation companies with having lower cost and price for their products have a better chance to survive. Furthermore, the company can have more saving for growing the capital and other recourses (Kokemuller, 2019). Also, it is essential to consider a reasonable price that might be the strong factor which preventing new firm to enter the market and attract more customer for the company.