Arrow Group Case Analysis
As one of the main companies in Arrow Group, A/S has achieved a lot in the high-tech industry. To detect the marketing decision of A/S, this essay will analyse the customer segmentation of A/S, and present how it improved the revenues by selling products to different target customers. Moreover, the proposal of Express Part to A/S and its impacts on the sales, current customers and suppliers will also be discussed.
Customer Segmentation of A/S
A company can obtain its market shares by transformed the demand of customers to the sales of products on a target market. The types of customers can be subdivided in several ways on the basis of market segmentation (Tsiptsis & Chorianopoulos., 2010). Based on the transaction, the customer segmentation …show more content…
Express Part had provided a platform with certain quantity of OEMs which can match the demand of users and response in a short time.
Impacts of the Proposal from Express Part
Express Part’s program was evaluated to have many effects on the operation of A/S, which may reflect on the aspects of sales, current customers and suppliers.
To start with, as Express Part claimed, the proposal of having access to such a large market will promote the sales of A/S with less than 50% of the cost. The service of Express offered an environment with more symmetry information to get the demand of customers in a convenient way.
Moreover, all current transactional customers might begin to do the business with Expressed Part instead of A/S. It was estimated that all these kind of customers and nearly 40% relationship customer will also have transactions with Express Part. As Kaufman indicated, the transactional customers, who contributed to 25% of the whole sales, cannot be ignored. This means A/S have the risk of losing large part of customers, not only the transactional customer but also the relationship
Customer Segmentation of A/S
A company can obtain its market shares by transformed the demand of customers to the sales of products on a target market. The types of customers can be subdivided in several ways on the basis of market segmentation (Tsiptsis & Chorianopoulos., 2010). Based on the transaction, the customer segmentation …show more content…
Express Part had provided a platform with certain quantity of OEMs which can match the demand of users and response in a short time.
Impacts of the Proposal from Express Part
Express Part’s program was evaluated to have many effects on the operation of A/S, which may reflect on the aspects of sales, current customers and suppliers.
To start with, as Express Part claimed, the proposal of having access to such a large market will promote the sales of A/S with less than 50% of the cost. The service of Express offered an environment with more symmetry information to get the demand of customers in a convenient way.
Moreover, all current transactional customers might begin to do the business with Expressed Part instead of A/S. It was estimated that all these kind of customers and nearly 40% relationship customer will also have transactions with Express Part. As Kaufman indicated, the transactional customers, who contributed to 25% of the whole sales, cannot be ignored. This means A/S have the risk of losing large part of customers, not only the transactional customer but also the relationship