TEEJAYS

Mini Case Study: Teejays



Mini Case Study: Teejays

Introduction

In today's world where entrepreneurship and owning your own business is considered to be the latest fashion to acquire wealth and status we see a lot of new businesses launching every month and every year but only few of them are able to maintain their position in the cutthroat competition and rivalry. Maintenance of the success of the business totally depends on the strategies a business owner adopts to operate it and strategies are the nub that decide the success or failure of an organization. In today's era businesses are and will continue to seek opportunities to expand the business across the border. When an organization goes across the border to establish their business their success again, relies on the strategic position that they prefer to adopt. Teejays, which is a, consultancy, wants to go global so in the objective of this paper is to choose, formulate and implement strategic position and policies.

Teejays' Clients in International Market

The strategies to be adopted for the customers of international market should be differing from the strategies that are embraced to attract local customers. For Teejays, strategies for its international customers are discussed below.

Organizational Behaviour of `Teejays' Clients

While targeting and segmenting customers in a global market, it is imperative that the organization should take into consideration the economic potential of its business. The economic potential of the business affects the organization targets and segments its customers, which in turn, shape their behaviour. While evaluating economic potential four components should be considered with regards to customers in an international and new market. These four components are as follows:

What margins and costs could be realized given the competitive position it should be able to achieve?

What market share could it command? How fast can its segment of the market grow?

What business “adjacencies” might it move into, and what kind of reinvestment rates would be required to do this?

Is the business likely to be worth more to someone else? Why? The attempt of this process helps the organization in realizing which segment of the customers would gain the economic benefits and which segments they can successfully target and fulfil their needs given the economic condition of the organization.

Effective Segmentation of Customers

As Teejays provide services of consultancy which is an intangible thing so in order to segment the market in an effective way Teejays should go beyond the segmentation factors such as demographics and psychographics and should segment the market according to the needs of the customers. This is a unique method of segmenting the customers which is discussed in the Fred David's book “concept and cases”. According to this method the customer's segmentation for Teejays would be as follows (David 2007, 204):

Industry

Level of needs and wants

Priority according to the needs and wants of the segment

Hotel and restaurant

High

First

FMCG

Medium

Second

Banking

High

First

Fashion

Low

Third

IT

Low

Third

Tourism

Medium

Second

Telecommunication

High

First

Public service organizations

High

First

Airline

High

First

Figure 1 Source: US industry Report

In the above table, the segmentation is done according to industries. The industry that needs customer care training most is prioritized as ...