The Application of Customer Relationship Management(Crm) as a Survival Strategy in a Competitive Environment

Topics: Marketing, Economics, Customer relationship management Pages: 12 (3450 words) Published: August 25, 2011


This study attempts to analyze the impact of environmental factors on organizational performance. Considering that performance is the major objective of an organization, it is generally accepted that the structure and decision making in an organization is influenced by environmental complexity and volatility (e.g., Miles and Snow 1978; May et al. 2000). Furthermore, it is argued that the alignment of strategies of organizations with the requirements of their environment outperform organizations that fail to achieve such an alignment (Chaganti et al. 1989; Venkatraman & Prescott 1990; Beal 2000). To carry out this study a review stive competition experienced by Our analysis reveals that an effective management of environmental factors are significant in determining the efficiency, effectiveness and overall performance of an organization within the period under review. The result provides strong support for the importance of management of environmental factors on the performance of an organization. Also, the analysis shows the relationship amongst profitability, liquidity and growth of an organization.

KEYWORDS: Environmental Factors, Customer Relational Technology and Organizational Performance


During the last years a series of studies concerning the impact of environmental factors on businesses in Nigeria have been conducted and the strategies adopted by the affected businesses and organizations. The motivation for this study is the need to practically examine how competitive environmental has an environmental factor has affected and how the company was able to outwit the challenges possed by the factor using Customer Relational Technology.

The classification scheme of environmental factors developed by Aguilar (1967) has been used by many researchers, such as Keegan (1974) and Kefalas and Schoderbek (1973). Although this scheme proved to be robust in time, many researchers made minor changes to suit their specific purposes (e.g., Auster & Choo 1993; Yunggar 2005). The external environment of a business organization is the pattern of all the external conditions and influences that affects, and/or relate to, its life and development. These factors include technological, social, competitive, economic, physical, and political factors. 1.The Technological Environment: This consists of those factors related to knowledge applied in the production process, inventions, methods and ways of doing things, procedures and innovations, plus the materials and machines used in the production of goods and services. Such factors have an impact on business policy and decision-making in an organization, on communication, infrastructural and managerial technologies. Policy-makers in corporate organization, on the technological environment, since technology, customer groups, and customer function, define the business of the organizations. Technological change can lead to relative competitive cost positions within a business; it can create new markets and new business segments; and it can collapse or merge previously independent businesses by reducing or eliminating their segment cost barriers. Technological developments include the discoveries of science and arts, the impact of related product developments, machinery and process improvements, the progress of data processing, and the application of sciences, ideas and knowledge to industry and commerce. Technology, in its best form, is the application of the knowledge of science and art in solving problems of a given community.

There has been an accelerated pace of technological development in recent years. This had led ton unlimited innovational opportunities, and new product development. Business policy formulation must be able tom...

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