1. Ben Lawson’s Custom Fabricators, Inc., creates value for Orleans by making the custom control panel for the elevators. Later on, the business has grown bigger. Ben’s company provides special brackets and panels for the plant. Since “outsourcing”, Ben also makes the entire control panel, complete with the buttons and the wiring harness.
2. Ben Lawson has some big competitive advantages in keeping the Orleans business. They have been working together for a long time so Ben‘s company could easily understand what the customer need like delivering in time, great quality products. After few changes, Ben still provide good products for Orleans so that help Ben to gain trust in doing business, which strengthens their relationship.
3. In the past, Orleans’ priorities were only about quantity, doing the same business with familiar suppliers. Now Orleans has change that. They want to make profit, reduce cost associated with the elevators by cutting raw materials cost, and that would affect Ben’s business.
4. Ben should change his business model so that it would have him gain advantages. Even though Ben has long relationship doing business with Orleans, it may not help much with Orleans’ new priorities.
5. In the value chain, Ben’s company is an efficient manufacturer because they build a factory that has full of tools to bring out the best products. Besides, those products are always delivered in time since Ben understands Orleans’ business. 6. Ben’s company has to prove that they will always bring high quality products that in Orleans’ need. Compared to a loyal customer as Ben, it would be safer to doing business with, both relationship and physical distance. Besides, Ben has to prove that hiring Mexican labor could help cutting cost but cannot compare with Ben’s company of experiences.
Case: Lasik Vision Corporation
1. Lasik Vision’s competitive priority is to offer the lowest price of eye surgery and high volume at the same time. They also run advertisement of big discounts to attract customer, which is “$1,475 per eye” and then “$1,598 for both eyes”.
2. As showed in the case, Lasik Vision did attract lots of customers and helped them gain profit but only in short-run. Because they cut out the fees for expensive equipment, it may not good care enough for the patients. Besides, their high volume of surgery may gain big profit but also bring higher risk, which is unsatisfied patients filing lawsuit.
3. If Lasik has chosen to be in this market, they have to guarantee their quality service to the customers. Also, they need to invest in some expensive equipment or train the employees. With that, they could grow their business in reliability of customers.