CRM (Customer Relationship Management)

CRM is a model for the company to manage organization's interaction with the customer. It use technology to organize, automate, and synchronize business processes.

Goals:

1. Find, attract and win new customer.
    
2.  Service and retain those the company already has.
    
3. Entice or attract former clients to return.
    
4. Reduce the costs of marketing and client service.

How CRM helps organization to understand their customer?

• Historical View
  This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business.
  
• Grouping
  Customers are grouped according to different aspects according to the type of business they do. This helps in focusing and concentrating on each and every customer separately.
  
• Customer Details
  Easy to track a customer accordingly and can be used to determine which customer can be profitable and which not.
  
• Opportunity of Business
  Organization's representatives will try to get business out of these customers by following up with them and converting them into a winning deal.

Kiss me through the phone? hahahah. Pay through the phone!!!!!

Question 1

It is a potential threat to the company because this new technology can make the existence company loss their customer. So, the existence company have to use Differentiation  strategy to adapt to this new changes that happen in the world today. By doing that,company create competitive advantages by differentiate their cell phone on 1 or more important features to the customer. These specials features also may give them price advantages and stimulate demand.

 Question 2

Barriers to entry is the threat of substitute products or services. Customer might think that these new modern telephone company may have more expertise in this new technology. So, easily they can change to new cell phone, and the old fashion technology can loss customer.

Question 3

The Three Generics Strategies in the new technology is Differentiation. This strategies may allow the company to put a higher price because of the special features they have in their products. Based on this case, as the traditional company already have name, so, they just need to step up their game by putting this new technologies into their new coming product.

Question 4

For example, a girl buy a new bag from ZALORA using direct debit transaction. So, the bank will directly deduct the money from our account and pay Zalora that  certain amount of money. The bank may charges a few ringgit for the service provided to the customer. from that, they can gain some profit through online payment. Once Zalora get the money, they will deliver the products to the customer.

Question 5

Fraud can happen from internet payment is fraud by the customer and by the company itself. customer may use others account to do payment or use different identity. So, if no payment is made, the company can't trace them. 

Chapter 2

Porter's 5 Forces of Model

More Details...

• Buyer Power is high when the customer have many choices of whom to buy. To reduce it, he organization must make it more attractive to buy from from the company, not from the competitors. product example is fast food industry. Customer have Mc Donalds, KFC, Pizza Hut, Domino Pizza, and many more.
  
• Supplier Power is high when customer have few choices of whom to buy from. To reduce it, Business to Business marketplace is the way. Reverse auction is the way to reduce because the supplier will bid to give the lower price to win the deal. Example, box supplier to the Domino's Pizza.
  
• Threat of Substitute Products is high when the customer have many alternatives to a product or service. Example is Coke vs Pepsi.
  
• Threat of New Entrants is high when it is easy for new competitors to enter market. Example product is a new system of paying bills which is through online, like online banking, online payment.
  
• Rivalry Among Existence Competitors is high when competition in market. Example of product is Malaysia Airlines vs Air Asia. Air Asia give a very low fares to fly. Well, now everyone can fly. 

Summary Chapter 1

Business Driven Technology.

It is all about Information Technology (IT). How IT affect business scenario today. 

IT can help business inside out of the organization. For example, IT can help the organization 

to reduce cost, improving productivity, and generating growth.

IT is a field concerned with the use of technology in managing and processing data. It cover many field that deal with the use of electronic computer and computer software. IT also play an important role in business success and innovation. 

Management Information system (MIS) is a business function such as marketing, finance and human resources. It cover the application of people, technologies and procedures.