1) Under which market circumstances is it unwise to aim for a customer intimacy strategy? Give two examples.
1. If you’re supplier of a product your customer would only want to buy your product for example only one time. 2. If your customers only buy your product because you’re the cheapest supplier because then your customers won’t expect you to be willing to build a relationship with them.
2) Why does the combination of the product leadership, customer intimacy and operational excellence strategies lead to problems? Explain your answer by providing an example.
It would be difficult to apply all three strategies, because all of the three strategies have their own culture. A combination of individual approach, a complete line of products and low costs and price levels are hard to maintain when the company also is expected to have a positive performance.
An example is the German supermarket chain Lidl. Because Lidl has a very cheap way of doing their sales, they have relatively low costs. This is why they can afford low prices. It would be rather difficult to maintain these low prices and also have an individual approach to the customer, because they simply cannot afford it.
Because it is not advisable to apply only one of three strategies, Lidl has a fairly extensive product range. If the customer wants, he/she is without a doubt perfectly able to do the everyday groceries at the Lidl. Of course, there are differences. For example: Lidl will only sell the cheapest products, so the choice will be limited. If one wants to choose from five kinds of peas, it is advisable to go to one of the more expensive supermarkets in the Netherlands, like for example the Albert Heyn.
3) Think of five examples of companies which implement a customer intimacy strategy. Explain your answers.
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