Pagoda.Com Case Study Write-Up

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PAGODA.COM

CASE STUDY WRITE UP

July 14, 2012

Executive Summary

Pagoda.com, an internet service provider, needs to make a decision as to whether or not the company should outsource its online help desk service to a firm in New Delhi, India. Pagoda.com caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it. Pagoda.com offers state-of-the-art email applications and web building software, as well as plenty of storage space and fast access via its high-speed servers. Pagoda's customers are more concerned with the high quality service that they receive than they are with the costs associated with it. Their customers would more than likely discontinue their service with Pagoda as soon as it is observed not to be up to the quality of standard which they expect.

Pagoda has several alternatives to choose from which include implementing the new service without notifying their customers and hoping for a seamless transition, offering their customers the choice to try the new firm and running both services concurrently, to choosing not to do anything and continue to run the online help desk service in-house.

In conclusion, Pagoda.com has a lot to consider while trying to make the decision as to whether or not they should outsource their online help desk services to the firm in New Delhi, India. Due to the nature of their business success being highly contingent upon the level of customer satisfaction and retention rates, Pagoda must pay close consideration to all of the factors which has made it a successful business up until this point. Pagoda's past business success and high customer satisfaction rates were valued and based upon several factors other than cost such as their high level of service and state-of-the-art equipment and software. Based on the information provided in the analyses of the alternatives , it is recommended that Pagoda.com choose not to outsource their online help desk services to the New Delhi firm at this time.

Description of the Main Issue:

The main issue in this case is whether or not Pagoda.com, an internet service provider, should outsource its online help desk service to a firm in New Delhi, India. Pagoda.com caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it. Pagoda.com offers state-of-the-art email applications and web building software, as well as plenty of storage space and fast access via its high-speed servers. Pagoda's customers are more concerned with the high quality service that they receive than they are with the costs associated with it. Their customers would more than likely discontinue their service with Pagoda as soon as it is observed not to be up to the quality of standard which they expect.

Analysis of Alternatives:

Alternative 1: Pagoda can choose not to outsource their online help desk services and continue business as usual. Pagoda's current in-house online help desk offers a service where customers who are experiencing technical problems or have questions can enter a one-on-one chat room where they can "talk" directly with an expert. Problems are usually resolved within ten (10) minutes and customers have listed this service as one of the reasons that they continue to stick with Pagoda.com. Pagoda has become the successful business that they are today while taking care of this service in-house. Pagoda has the highest customer satisfaction and retention rates in the industry, and there is no reason why they should not be able to continue doing it successfully in the future as well.

Pros: Pagoda has already built and maintained a strong customer base with proven levels of high customer satisfaction while performing the online help desk services in-house. It is very likely that the customers will continue to remain satisfied and stay...
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