1-888-Jnk-Van Case
1) Is this decision important for 1-888-JUNK-VAN? Why or Why not?
I believe this decision to look for a new IT system is very important for Kingo’s growing business. He knows that the business without an IT system creates too much errors in customer’s request, therefore a new system which organizes information is needed in order to keep up with demand and customers’ satisfaction. Not only will a new IT system improve customer’s satisfaction with the ease of adding new orders, but it will benefit the company as well. The obvious benefit is that data is now store in one place, therefore data can be access with ease. Furthermore, process time will decrease as e-mailing data to the data clerk will no longer be necessary. Less time wasted in processing data is more time that can be wasted doing other benefaction operations. A new IT system will decrease cost overall while increasing profit with decreasing errors and processing data quickly and more efficient.
2) What are the competitive forces facing 1-888-JUNK-VAN? What role can IT play in this competitive landscape? …show more content…
Since the Junk industry is a low-cost entry, since Kingo only paid 500 dollars for his truck and a few to start his business, it doesn’t take much investments for competitors to compete with Kingo. However, since Kingo is planning to introduce this new IT system into the company, his competitive advantage is much higher than new competitors. Furthermore, with less time wasted on processing data, Kingo’s company will have time to focus on marketing or even lowering prices due to the overall long-term cost that this new database will bring. Lowering prices is an opitional and not recommended step when setting-up a new IT system, since the front cost will be high. This is in case customers’ buying power increase and Kingo needs to introduce a new method od attracting clients to his
I believe this decision to look for a new IT system is very important for Kingo’s growing business. He knows that the business without an IT system creates too much errors in customer’s request, therefore a new system which organizes information is needed in order to keep up with demand and customers’ satisfaction. Not only will a new IT system improve customer’s satisfaction with the ease of adding new orders, but it will benefit the company as well. The obvious benefit is that data is now store in one place, therefore data can be access with ease. Furthermore, process time will decrease as e-mailing data to the data clerk will no longer be necessary. Less time wasted in processing data is more time that can be wasted doing other benefaction operations. A new IT system will decrease cost overall while increasing profit with decreasing errors and processing data quickly and more efficient.
2) What are the competitive forces facing 1-888-JUNK-VAN? What role can IT play in this competitive landscape? …show more content…
Since the Junk industry is a low-cost entry, since Kingo only paid 500 dollars for his truck and a few to start his business, it doesn’t take much investments for competitors to compete with Kingo. However, since Kingo is planning to introduce this new IT system into the company, his competitive advantage is much higher than new competitors. Furthermore, with less time wasted on processing data, Kingo’s company will have time to focus on marketing or even lowering prices due to the overall long-term cost that this new database will bring. Lowering prices is an opitional and not recommended step when setting-up a new IT system, since the front cost will be high. This is in case customers’ buying power increase and Kingo needs to introduce a new method od attracting clients to his