Cabo San Viejo – Possible Solution Essay Example

indicates that loyalty programs do not significantly enhance customer loyalty or behavior. They primarily function as a form of price discount. At cabo, we believe that our success lies in our employees and in fostering personalized relationships with our customers in a customer-centric environment. Our current main objectives are to avoid the negative impacts of competition, withstand the threat posed by new entrants, and maintain control over the assets that determine the value of our competitors.

To mitigate the negative impact of competition, our industry must recognize that its intelligence is determined by its least intelligent rival. Thus, we need to identify this competitor and take appropriate action. One approach is to concentrate on specific market segments in order to reduce the number of competitors. Additionally, we can establish switching costs by cultivating customer-specific knowledge and encouraging customers to develop product-specific knowledge. Implementing frequent customer programs aids in targeting undecided or hesitant customers.

To safeguard against potential new entrants, we need to adopt their perspective and devise strategies to deter them. Establishing enduring relationships with suppliers and customers while building a reputation that newcomers cannot easily replicate is essential. Furthermore, creating barriers to production through securing superior access to critical inputs and leveraging exotic locations is crucial.

Furthermore, it is imperative for us to control assets that determine our competitors' value. This entails identifying the particular assets that new entrants bring into the market and finding ways to gain control over them.

Our case involves providing a low priced service, and we are determined to counter competition from low cost competitors. We have decided to utilize a decision flow diagram that emphasizes the importance of creating value in

order to achieve profitability. Value is defined as the advantages our customers receive compared to the cost of production. To economically create value for our products, we employ several strategies at cabo including guaranteed one minute check-in, guaranteed room availability, eliminating unnecessary paper transactions, and celebrating family functions such as silver and golden jubilees.

Our commitment is to ensure transparency and exclusivity for all of our customers through personalized and dedicated customer care. We treat each customer equally, aiming to provide them with the optimal experience. For privileged customers, we offer express checkout where everything is settled in advance. Furthermore, we provide a complimentary pick-up and drop-off service to the airport.

We strive to exceed customer satisfaction and cultivate lasting loyalty and advocacy for our brand. To enhance our commitment to enhancing customer relationships, we suggest implementing the following measures: designating three individuals - a Connect Administrator in charge of managing our customer relationship management (CRM), a Campaign Manager responsible for creating an effective and economical system for strategizing, segmenting, monitoring, and assessing marketing communication initiatives via direct channels.

The responsibility of the customer technologist involves data warehousing, data mining, and reporting to develop strategies for customer growth. It is crucial to acknowledge that although the suggested strategies and recommended actions are valid, their effectiveness may diminish in the future due to the continuously changing business environment. Hence, it is essential to consistently update and adjust these strategies for long-term sustainability.