Case of Profitless Pc

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- Product Differentiation: Should not be treated as commodity. Differentiated on basis of customer requirement.

- Customer Service & User-Friendliness: Product should be served as a customized package along peripherals and services. Personalized selling as proposed by Linda should be considered based on feedback from extensive market research and pilot implementation results.

- Alternate Distribution: Selling through internet as an alternative is a good option. It will reduce the cost significantly. But, user friendliness is required in selling the items.

- Price: Internet selling will reduce some of distribution cost.

- Innovation: Customer centric innovation is required. Customer requirement can be identified from market research and product can be development to address those requirements.

- Underutilization of Existing Brand Associations: Linda never focused on the present brand associations attached to Praxim. Major changes in brand association will alienate both internal and external stakeholders as well as customers. Further, initiative should be taken to leverage any positive association.

- Requirement of Effective Market Research: Market research is of primary importance to access the present situation and identify the requirements from customer perspective to resolve the situation. Innovation and product specifications should be designed as per customer requirement which is not followed presently. Even, this research will also validate the effectiveness Linda’s proposal of personalized selling. Further, this might also provide a direction for Mike’s “killer app” idea.

- Requirement of Pilot Implementation: As Linda’s proposal is expensive and tenuous as well as it requires shift of resources from profitable commercial business to consumer business. Thus, a pilot project will help in judging the feasibility and effectiveness of the proposal in a cost-effective manner.

- Resolving internal conflicts: Data obtained from market research and pilot should provide a roadmap for future plans. These figures will help Linda to convince other internal stakeholders. Praxim can only survive if integrated approach is initiated in all functions.