Bargaining Power of Customer Assignment
Added on - 09 Oct 2019
Showing pages 1 to 3 of 7 pages
A.The five forces of the Singing Valley Market are listed below:1.)Bargaining power of the customer- The superior offering and quality of SingingValley Resort is seen to be best and have high quality. With superior quality ofservices, the bargaining power of the customers is seen to be low.2.)Threat of substitution- Due to high quality and its location, the Resort has attaineda lead there is no danger of being replaced. The Resort always experiences fulloccupancy and another goal is to attain increased revenue. Therefore the threat ofsubstitution is low.3.)Bargaining power of the suppliers- There is a chance of increased cost due to theclientele being staying away from the Resort. There are chances of increment inthe food and wine prices. The current suppliers can be given a counter forpresenting cheaper prices from other available suppliers therefore resulting inbargaining.4.)Threat of new entrants- Only the resort with same area can boast of providingsuperior quality along with superior services including various other activities.Therefore the threat of new entrants is low as well.5.)Rivalry- Due to superior quality, the Singing Valley Resort exceeds itscompetitors with its high-class service, superior accommodations, deliciousmeans etc. The location helps the Resort to attain highest position among therivals.B.Statement of Competitive StrategyThe Singing Valley Resort has to provide superior services along with high qualityaccommodation for maintaining their current revenues. The needs and wants of the
customers have to be determined clearly and efforts must be placed on providing themwith best facilities.Singing Valley resort has to increase their revenue for creating theirown services which will offer activities. Further, a new information system has to beimplemented for keeping a record of all the repeating customers. The repeating customerswill be sent electronic surveys and will be attached in a file. An activity schedule has tobe presented every time the customer requests to make a reservation before or after theirarrival. This way the Resort management would be able to differentiate among the needsof their repeating customers. Singing Valley Resort would be able to cater to the wantsand necessities of clients by analyzing what their clients wants (Kandampully, J., &Suhartanto, D., 2000).C.Statement of ProblemThe Singing Valley Resort does not have an organized and complete informationsystem. This was a prime reason that their auto email system failed and made variousinformation mistakes. This automated email system was seen to send faulty emailcongratulating their clients for their stay to those who had not visited from past twothree years. The Resort therefore failed to keep up the track of their regular andcurrent guests and were not able to recall their preferences on their return visit.Therefore the Singing Valley Resort needs to rebuild their information collectionsystem along with Timely Information update system for ensuring that theinformation of every single customer is accurate and up to date. This informationsystem will help in recording the personal preferences of their customers so as to helpin maintain a good relationship on their return. Furthermore, this information systemmust be enabled towards keeping a track on personal characteristics of the customers
so as to greet them in a friendly manner on their next visit along with ensuring theirpreferences as per their wish.D.Two scenarios of low cost rentals along with high service rentals have to beconsidered for undertaking major activities like determining the needs of theclients, greeting their customers, rent the room and return room and pay. This willhelp in ascertaining the customers’ mood. Secondly, there is a need to determinethe wants and needs of the customers to identify his desires and expectations fromthe resort. Lastly, the needs can be identified on the basis of low tariff and hightariff rooms along with providing comfort while their stay in the Resort. Thecustomer’s then checkout after paying their bills. The Resort can perform thegiven below activities as per their requirements.