Strategic Relevance of OTISLINE
Strategic Relevance of OTISLINE can be better understood by analyzing the business background, Industry and the Critical Success Factors of OTIS.
OTIS is a subsidiary of United Technologies Corporation and is in the business of Elevator Sales, Service and Maintenance. Higher margins can be attained in Service and Maintenance and maintaining Customer Relationship is the key to get a foothold in this area.
Michael PorterÃ¢â‚¬â„¢s model may be used to analyze the Elevator Industry.
Threat of Competition
There are many players in the Industry and Threat of Competition may be regarded as High.
Threat of Suppliers
Raw Materials used to manufacture Elevators and cables can be readily obtained from multiple Suppliers. Threat of Suppliers may be regarded as Low.
Threat of New Entrants
Threat of New Entrants is high as Distributors and Suppliers can forward integrate and compete with the existing players.
Threat of Substitutes
Threat of Substitutes is Low as there are no substitutes for Elevators in high-rise buildings.
Power of Customers
Customers enjoy high bargaining power as they can easily switch from one firm to another for service and maintenance. Customers can always award Service contract to firms whose Customer service is Reliable and meet the ever growing customersÃ¢â‚¬â„¢ needs.
Critical Success Factors
Leadership in Technology
Considering the CSF, Reliability:
A key finding of the PorterÃ¢â‚¬â„¢s Model for Elevator Industry is that managing power of Customers is a critical successful factor in this Industry. Firms can achieve and maintain leadership position in the market by identifying the implicit and explicit needs of CustomersÃ¢â‚¬â„¢ and ensuring that those are satisfied at all points of time.
Reliability is one of the...
Please join StudyMode to read the full document