Problems may arise when other high quality mobile phone manufacturers start to

Problems may arise when other high quality mobile

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Problems may arise when other high quality mobile phone manufacturers start tocopy the distribution strategy of Xiaomi, e.g. selling through geekbuying. They may need tospend more for priority listing and representation at these sites which may drive them awayall together, in this case they could also choose direct sales as they are now muchestablished as a brand and it will be easier to generate traffic to their own platforms.Alternatively they could copy strategies of Apple and Samsung who sell most of their phonesthrough value added (mobile subscription) partnerships with telecom companies, whilepopular in many countries there are huge margin implications with this approach.
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How to lose points: 1) Describe only 1 distribution channel 2) Describe two, but without examples 3) Describe two with examples, but with little knowledge on the cases. 4) Do not discuss contextual conditions 5) Fail to understand potential implications of contextual conditions 6) Unclear arguments 7) Woolly narrative Question 2 ; For a start-up discussed in the workshops, discuss one way to increase Customer Lifetime Value and one way to reduce customer acquisition cost, discuss benefits and drawbacks. Ways to increase customer lifetime value; Reduce churn (customer service, favourable maintenance schemes, feedback cycles, etc.) Up-sell Unbundle cross-sell next-sell referral Ways to decrease customer acquisition cost; Free media Targeted advertising Word-of mouth Actively manage review process Use of Dedicated online Next-sell; Benefits; Natural cycle where future earnings partly consist of existing customers. Given that you already served these customers you know better what they want and through monitoring their behavior, (reviews, calls for maintenance/support, online monitoring, surveys) you have a fair idea when and why they want to buy your product again. It creates a steady flow of income that can be partly predicted by the quality level of your product/services. Drawbacks; Managing the expectations of customers is key, you want to gently persuade them, preferable without them noticing to next-buy. If the lifecycle/quality of your product is too low, i.e. requiring repeat purchase too soon, customers may go to a competitor. If your lifecycle is too long you need to have a strong emphasis on maintenance/service etc. to
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sustain your business model. Managing your product lifecycle hence is equally important underlining the importance of monitoring your customers carefully.
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