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Case
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Reference no. 597-040-1
Subject category: Marketing
Authors: Marika Taishoff (Imperial College London); Sandra Vandermerwe (Imperial College London)
Published in: 1997

Abstract

This is the second of a three-case series (597-039-1 to 597-041-1). The case series challenges participants to relook at strategic focus and marketing strategy to become customer driven and create an enduring competitive advantage in a maturing competitive environment where price has become the key differentiator. The cases emphasise what is meant by customer focus and the value added service approach, and the implications of a transformation to this way of doing business on the thinking and internal workings of an organisation. In case (B), Leyland has presented the lower than expected 1996 results, and the conservative outlook for 1997, to top management. He has persuaded them to give him a year without budgeted results in order to reverse the steady deterioration in results. The case goes on to describe how Baxter achieves the promised success. Instead of competing for market share of bags based on price, Leyland creates and leads in a newly articulated "market space" - "renal insufficiency management" - where providing results over time through a series of value added services, for all customers - hospital and health authorities and senior management, economic buyers and patients - would become the key measure of success. The cases are built around the understanding and measuring of the total lifetime value of customers to an organisation and similarly quantifying the value of the corporation to these customer sets. Two videos are available to accompany the case series ''597-039-3'' and ''599-014-3'', the latter gives an update (March 1999) on Leyland''s strategy.
Location:
Industry:
Size:
USD100 million to Baxter Renal
Other setting(s):
1996-1997

About

Abstract

This is the second of a three-case series (597-039-1 to 597-041-1). The case series challenges participants to relook at strategic focus and marketing strategy to become customer driven and create an enduring competitive advantage in a maturing competitive environment where price has become the key differentiator. The cases emphasise what is meant by customer focus and the value added service approach, and the implications of a transformation to this way of doing business on the thinking and internal workings of an organisation. In case (B), Leyland has presented the lower than expected 1996 results, and the conservative outlook for 1997, to top management. He has persuaded them to give him a year without budgeted results in order to reverse the steady deterioration in results. The case goes on to describe how Baxter achieves the promised success. Instead of competing for market share of bags based on price, Leyland creates and leads in a newly articulated "market space" - "renal insufficiency management" - where providing results over time through a series of value added services, for all customers - hospital and health authorities and senior management, economic buyers and patients - would become the key measure of success. The cases are built around the understanding and measuring of the total lifetime value of customers to an organisation and similarly quantifying the value of the corporation to these customer sets. Two videos are available to accompany the case series ''597-039-3'' and ''599-014-3'', the latter gives an update (March 1999) on Leyland''s strategy.

Settings

Location:
Industry:
Size:
USD100 million to Baxter Renal
Other setting(s):
1996-1997

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