FMGT 2701 - Assignment 3

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School

British Columbia Institute of Technology *

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Course

2701

Subject

Information Systems

Date

Apr 3, 2024

Type

docx

Pages

3

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1.1. What is customer experience management? How can it contribute to competitive advantage? (1 mark) Customer experience management is trying to establish a good relationship between the customer and the business. It not only includes customer service but covers the whole journey for the customer such as starting to know the product, comparing the product with other companies, buying the product, and requesting the after-sale service. Recently, customer experience management has become so important that the position of chief experience officer (CXO) came out to help manage it. By establishing a good relationship with the customer, the company could get higher satisfaction from their customers, which helps them to achieve more revenue and bigger market share, less customer turnover, contributing to the success of the business. For example, McDonald’s sales grow a lot after introducing the digital self-order Kiosk ordering system. This is because they realize that the customers at the store are crowded, which discourages their dining experience, therefore they start to develop new ordering systems to satisfy the needs of customers. ① Source: ① Information Systems. (2021). In   Management Information Systems Managing the Digital Firm 17th Edition   (pp. 96–97). Kenneth C. Laudon Jane P. L. 1.2. How does information technology support customer experience management? Give examples. (1 mark) With the development of information technology, the company is easier to know the needs of their customers so that they can feature their products to please the customers. For example, the Spotify app is a popular music-streaming app, and the customer can create their personal music playlists. By knowing which kind of music they like with information technology, the IT team of Spotify can promote similar types of music to their customers to meet their preferences. With the good experience of using the service, it is more likely that the customer will recommend it to their friends or relatives to contribute to the success of the business. Besides, McDonald’s developed a digital self-order system, which helps to decrease the time of line-up and improve the customer experience. As a result, it did promote the growth of sales. 1.3. How did information technology and customer experience management change operations and decision-making at the organizations described in this case? (1 mark) For Zappos, when the customer delayed returning a pair of shoes because her mom passed away, the company paid the return fees and sent a banquet of flowers to express sympathy to the customer, which is so sweet. For Amazon, it created the shipping network so that the prime customer could enjoy the two-day delivery service. Besides, it introduced one-click ordering to help solve the difficulty of checking out. All of these operations help to provide a pleasant customer experience. For Netflix, it changes the upcoming attractions to the section instead of on
the top of the screen to accommodate customers’ needs and it creates the skip button to help binge watchers skip the opening credits. For Spotify, it just promotes similar types of music according to personal music playlists. For McDonald’s, it develops a digital ordering system to decrease the time via line-up for ordering food. Source: ① Information Systems. (2021). In   Management Information Systems Managing the Digital Firm 17th Edition   (pp. 96–97). Kenneth C. Laudon Jane P. L. 2. Define Porter’s competitive forces model and explain how it works. Define each component. Use your own words and own examples. Pick a particular organization/company and explain how each force affects the organization/company. (2 marks) ② It is usually used as a business strategy to help analyze the competitive environment of the market. It reminds the company to consider if the existing competitors are trying to occupy the bigger market share and how easy it is for new competitors to come into the same industry. Besides, the company also should consider if the product or the service can be replaced by other products or services easily. For example, electric cars are increasingly accepted by the public, which may threaten those gas car manufacturers. The customer could know the price of the products instantly online and the company must try to retain the customers with lower prices sometimes. For example, we could usually see many customers from Koodo port in their mobile numbers to Fido when they know Fido has a deal plan. The supplier also has the power to drive up the prices, so it is better to have several suppliers to control the cost. For example, my friend opened a local coffee shop in the downtown area, he must know it is easier for a new competitor to come into the market and he also has to compete with Starbucks, and McDonald’s which are known to the public to provide high-quality coffee. He also should consider that the coffee could be substituted by bubble tea or smoothie. The suppliers of coffee beans are important, and he needs to get the suppliers that provide high-quality coffee beans. The customers could have a wide range of choices and they may go to other coffee shops if they are not satisfied with the price, or quality of the coffee. Source: ② Information Systems. (2021). In   Management Information Systems Managing the Digital Firm 17th Edition   (pp. 91–93). Kenneth C. Laudon Jane P. L.
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