KIMURA KK Can this customer be saved? (IMD -5-0598) Case Analysis

Essay by Venkata August 2004

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1. What seems to be Pramtex's strategy?

Pramtex's strategy: Pramtex is pursuing the goal of being the technology leader in the sector. It has chosen product differentiation over cost leadership. In pursuing this goal, it seems to have fallen behind in the maintaining adequate service standards.

Its strategy involves close cooperation with the lead user customers to get a presence in the developing standards of the industry. Overall, it seems to be focusing on the high-end premium segment of the market. This is also supported by the fact that whereas it's overall share is only 3% of the market, its share of the premium segment is 8%.

2. What is the "Perceived value" for a customer like Kimura?

Perceived Value: "Perceived value" is different for different customers. Out of its various elements, such as buyer's image, trustworthiness, customer support etc, different customers give different weightage to different elements.

Out of these, a customer like Kimura k. k. falls under the category of price buyer. For such a customer, companies need to offer stripped down products and reduced services.

3. Who are the key players at Kimura in the purchasing decision?

The key players in the purchasing decision at Kimura are:

Senior R&D advisor: Dr. Nomura,

Chief of production: Dr. Komuda,

Company President: Dr. Kimura,

Finance Director: Dr. Eiji Hashimoto.

4. What are their respective roles and interests?

Initiator: Dr. Nomura. His interest is in recommending the best technology product while taking into consideration the strategy of the company.

End-User: Dr. Komuda. His interest was to ensure that the machine would satisfy his technical specifications. It should also meet maintenance requirements. The learning curve should not be too steep. And the downtime should be minimum.

Decision-maker: Dr. Kimura. His interest is in choosing the machine that offers the best...