Service X Case Study

1681 Words 7 Pages
Issue
The issue arising from this case involving ABC systems, revolves around the sales of Service X. Primarily referring to the marketing strategy the two companies may utilise. Furthermore, this issue expands towards the exclusivity and the terms to be agreed upon about the life of the product. Furthermore, about the direction to be taken by both companies to deliver a quality product beneficial to the aerospace industry. Moreover, due to SITA investing a considerable amount of resources towards the service If after a few years ABC systems decides to appoint a new distributor this will change the aerospace industry. Finally, SITA may have invested in a product that competes with their company’s values and beliefs as well as their sales and
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This would result as a long term relationship between the companies maintaining the product/service as well as marketing techniques and methods used throughout the years and limiting choices of future options for SITA. However, provided SITA is happy with the product it may improve over time the product may be the leading product in its field. SITA may use this strategy alongside ABC systems however, the benefits of a long term contract is more likely to be beneficial whether ABC systems is willing to share information and assist in growing the companies and products together.

Stephen Baird states SITA may consider ABC systems to sell and support existing customers as well as potential new ones jointly with SITA’s distribution rights. (Video). While this may be beneficial and increase clientele this may result in conflict between the companies. Moreover, playing a large role in the relationship between the companies as ABC systems have a significantly smaller amount of time, resources, labour and infrastructure as compared to SITA.
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As stated in the causes the first option the companies may choose to use a multi-channel distribution method. This method offers customers several choices to buy products (Chron) by utilising a number of distributors. There are several merits by utilising a multi-channel distribution method. Firstly, risks may be reduced as compared to an exclusive distribution channel strategy. Furthermore, Multi-channel distributors can adapt to a changing environment (imperial) Moreover, the use of multi-channel distribution allows the service to have an increased client base as well as multiple distribution points to deliver a product. Furthermore, this will allow products to receive the service in a timely fashion due to SITA being a global company. As a further matter this will increase sales due to the service becoming widely available on a worldwide scale as well as increasing market share. However, if one distributor fails to perform other distributors may assist. Finally, having a larger network of internal stakeholders involved with Service X providing a great service will attract potential customers such as airlines and governments to purchase the service and reuse the service as well as the associated organisations.

Although there are several merits there are also a couple of drawbacks. Pricing may vary in different regions dependent on the distributors and the current exchange rates between countries. This may be resolved by

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