15 Mar In what ways can CM Tech create value for their customers? Which should be most important to CM Tech, their most valuable customers or their most profitable customers?

Order Instructions
1 In what ways can CM Tech create value for their customers? Which should be most important to CM Tech, their most valuable customers or their most profitable customers?
2 In what ways can CM Tech create value for their shareholders? Will the same actions that create value for the shareholders also create value for the customers?
3 Which two of the five value-capture methodologies discussed in Chapter 28 do you feel would be most effective at CM Tech? Why did you choose those two? Be sure to fully support your assertions in all three sections with reasoning, examples, and research

SAMPLE ANSWER

CM Tech can create value for their customers in several ways. Firstly, by providing high-quality and reliable products that meet the customers’ needs and expectations. Secondly, by offering excellent customer service and support to ensure that customers have a positive experience with their products. Thirdly, by providing innovative and unique features and functionality that differentiate their products from those of their competitors. Finally, by offering competitive prices that provide customers with value for their money.

In terms of which customers should be the most important to CM Tech, both their most valuable and profitable customers are important. However, it is essential to strike a balance between the two. Valuable customers may not necessarily be the most profitable, but they can provide CM Tech with valuable insights and feedback that can help the company improve its products and services. On the other hand, profitable customers are important as they contribute significantly to the company’s revenue and bottom line. Therefore, CM Tech should prioritize both groups of customers and strive to meet their needs and expectations.

CM Tech can create value for their shareholders by growing their revenue and profits. This can be achieved by increasing sales, expanding their customer base, and entering new markets. Additionally, CM Tech can focus on improving operational efficiency to reduce costs and increase profitability. Another way to create value for shareholders is by investing in research and development to develop new and innovative products that can generate revenue in the future.

The actions that create value for shareholders may not always be the same as those that create value for customers. For example, reducing costs by outsourcing customer service may improve profitability, but it could also result in a decline in customer satisfaction. Therefore, CM Tech should carefully consider the impact of their actions on both customers and shareholders and strive to find a balance between the two.

The two value-capture methodologies that would be most effective for CM Tech are pricing and bundling. Pricing involves setting prices for products and services based on their perceived value to the customer. CM Tech can use pricing to differentiate their products from competitors and create value for customers. For example, by offering a premium product at a higher price point, CM Tech can target customers who value quality and are willing to pay more for it.

Bundling involves offering multiple products or services together at a discounted price. CM Tech can use bundling to increase the value of their products and encourage customers to purchase more than one item. For example, by bundling a software product with a training course, CM Tech can offer customers a more comprehensive solution and increase their revenue per customer.

Both pricing and bundling can be effective for CM Tech as they provide opportunities to increase revenue and profitability while also creating value for customers. However, it is important to carefully consider the pricing and bundling strategies and ensure that they align with the needs and expectations of both customers and shareholders.