Trying to maintain dual value disciplines, both operational excellence and customer intimacy, the company failed to implement a successful strategy. Also, the company expanded faster than its customer demand. As the case notes, the first DC operated below the targeted capacity for several quarters, yet the company continued to develop other facilities along with acquiring another company. They attempted to provide customers with a reliable services at competitive prices (operational excellence) while also trying to target markets and tailoring offerings to attach demand (customer intimacy).
Their heavy investment in technology at their Doc's never presented the real cost savings they were hoping to achieve. Challenges with the technology early on created errors with many of the orders. Most of the technology didn't add to operational efficiency in many cases. In addition, the company was unable to fulfill preferred delivery times for customers due to delivery personnel shortages. Obtaining Homegrown. Com only added to the problem because the company was not in line with Waveband's current process.
They differed n several ways included the types of products they offered as well as the delivery standard that was established by Waveband. The company made a huge error in decreasing its marketing spend to focus on retaining current customers. According to the article, "E-business: Revolution, Evolution or Hype? " the role of the brand appears Just as important in online purchasing as it does in traditional purchasing. By not focusing on building the brand image and attracting new customers, the company was unable to retain customers. For example in the Bay area, of the 6. Of customer that tried the service, only about half placed a second order. This weeks article states that in order to gain market leadership, a company must align their entire operating model to serve one value discipline. My recommendation would be to focus on maintaining operational excellence. This can be done by reducing cost in the various areas of their business process and eliminating anything that is tailored too particular market. Business Processes and Strategy for Waveband By Bamako Waveband was faced several issues with their business processes and strategy. By