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- 2010-12-22
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- 1970-1-1
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The argument endorsed by the author to maximize profit is to build a restaurant, a theater, and a golf club. Inspired by the successful example of XXX town, which runs the same bussiness strategy, the author to apply a customer loyalty, with the purpose of obtaining a long time relationship with the customers. At first glance, the reasoning appears to somewhat convincing, however, a careful scrutiny will help us to find that the author's method will not produce the desired result until he takes all the possiblities into consideration. First of all, the author unfairly take the XXX town's example without thinking about whether his town can run the some strategy. For example, people in XXX town tend to attend a concert after supper while those in the author's town don't like music at all; another situation, the weather condition is suitable for the bussinessman to maintain a golf course, which needs a lot of watering everyday, however, lacking of water in the author's town may detard or destroy the whole golf grass. Without considering all the differences both in weather condition and cultural areas between the XXX town and his own town, the author would waste a lot of money lauching the same projecting. As far as I know, a lot of golf courses were build in China, but after several years, lacking customers, quite a few go deserted. Secondly, the author fails to consider a crucial question, does the strategy that work well today will still attract a lot of traffic tomorrow? Time flies and things changes. A giant company such as Lehman brother will fall someday and people's taste change everyday. Suppose people today enjoy going golf club after lunch, the other day, he or she would choose to play tennis. The author should carefully examine what the people like to do in the long run before diving himself into the project. Many businessman jumped into the real estate area some years ago, with the hopes of making a lot of money, however, only a few survived after up and downs. Last but not least, the author thought with the loyaty programme, which offers customers discount in case he or she pay for the third service his group provided, his group will attract a lot of business. Howver, common sense tell us that his thought is just an emotional appeal. In the business world which customers have tons of choice. The price is not the only consideration for a customer to make a choice, for example, the customer will view service as a key tone. That's why today people are lining up to buy an iphone all the world. The author also neglects the fact that the bad shopping experience in one service will lead a customer stay away from the left two business the author run. To conclude, the author's plan is not as persuasive as it stands. Accordingly, it's too opmital for the author to start his business project without consider all the possible situation mentioned before. Is the strategy applicable to his town? Is the example still popular in the long run? Dose people will like to pay for a third service just because of discount? Only with more convincing study of these questions will the author successful do his business. |
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