Otisline Case

In: Business and Management

Submitted By Chaitalig
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1. Suppose you have conceived the idea of Otisline. What would be your arguments to convince the management for investing in this project? Our proposition would be elaborated on the following points: 1. Existing Market Scenario: The study of North America sales and services shows the industry of elevators is very competitive and stable with steady demand and high profitability that attracts new entrants. Use of similar technology in all the elevators led to increase in many small companies devoted purely for service. The competitive edge exists in acquiring the long-term service contracts, as elevator sales market was very competitive with marginal profits. Thus the focus was mainly on targeting the service industry. 2. Differentiating Our Product: Our product could be differentiated on the basis on responsiveness, quality and price. a. To target the responsiveness (24 hours a day): With the concept of the OTISLINE, the company can accept the customer requests not only in the working hours but also during non-prime-time hours. This would decrease the response time to the consumer calls thus increasing the visibility of our service business. b. To target quality: The quality of the company’s service was a measurement of its responsiveness to callbacks. Thus, reducing the response time increases customer satisfaction and brand loyalty. The employees would also be effectively trained which would buttress the quality of service at the local office personnel level. c. To target price: Having an effective value chain would help to solve the problem in less time. It enhances the ability to quickly diagnose the problem, as record of similar malfunctioning would be maintained in the database. Eventually, the reduced callbacks on each installed elevator by one a year would save Otis $5 million…...

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