Kimura KK Case Decision Sheet

Topics: Cost, Customer, The Delivery Pages: 2 (475 words) Published: September 21, 2014
Kimura KKSection B Group 9

Objective: To retain Kimura KK as a customer and gain new customers in Japan

Situation Analysis:

Pramtex and Kimura KK have had several issues before the first deal of three Spartacus machines was finalised 1. Mr. Hashimoto had concerns about the price of Spartacus machines price being 20% higher than the other bidders’ machines. 2. Spartacus was a “Rolls Royce” of disk manufacturing machines and Kimura KK wanted a “Toyota Corolla”. 3. John failed to call Hashimoto regarding the new quotation. 4. The new quotation sent by John was very similar to the first one. 5. Singulus, the German company, was pitching aggressively for the orders from Kimura. 6. Dr. Nomura had put all his efforts to push the deal in favour of Pramtex.

Even after the finalisation of the deal, there were many issues. 1. The delivery was delayed by a few days.
2. One of the machines had a defective component.
3. The support team arrived 4 days after the breakdown.
4. The problem was resolved 8 days after the breakdown.
Although the issues mentioned above are small in nature but their gravity was magnified by the tight schedule which Kimura KK was following. Beside these there was an issue regarding the payment of first order, where the accountant was “unprofessional” with Mr. Hashimoto.

All these issues had in one way or the other made their relation sour. Kimura KK was expecting to be treated in a different manner.

Perceived Value can be written as Benefits – Costs. The benefits and costs in this case are listed as follows: Benefits with Pramtex:
State of Art Technology
Higher Cost
Higher Capacity Machines
Unprofessional Conduct
High Quality Output
Delayed Responses

Reliability and trustworthiness

Flexibility in service

The perceived value of Pramtex was negative at this point as the costs weigh higher than the perceived benefits. Pramtex needs to make serious efforts to improve their image with Kimura KK as other...
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