B2B Decision Sheet: Case 1
B2B Decision Sheet: Case 1
Dilemma:
Tarun received two orders from customers with the same lead time. Both the client's enterprise and
Sam Pharmaceutical have ordered products worth INR 2 million and INT 2.3 million. Ram enterprise
was already a client of Sam pharma, but with new growth opportunities, Sam pharma is now a new
client. Tarun is limited in the number of clients he can serve at one time since he doesn't have enough
resources to go around. The firm doesn't have a system in place to identify potential clients and
develop plans for them. The dilemma is which of the above-mentioned clients to choose.
Objectives:
● To increase revenue
● To build and maintain customer relationships
Decision:
Key Account management: It is a good idea to choose KAM as the company has not been successful
in identifying its most powerful potential clients. KAM is a company that helps businesses manage
and improve their communication. KAM helps to increase sales from 20% of the company's most
important accounts. The services we offer help to keep and expand relationships with our clients.
For the current issue, Tarun can use up to 40% of the unutilized equipment to fulfil both the orders
which will help to sustain the old client, and also build a new relationship with the new client. This is
also profitable for the company as these are bug orders and the company can plan for future
expansion.
SA's relationships with its two key clients, Vintage and Chevron, seemed to progress well until 2004,
when Chevron's newly hired Purchasing Manager decided to change the company's commercial
structure, making its purchasing process much more bureaucratic and extremely competitive. Chevron
issued an invitation to bid for the directional drilling service contract in October 2004, despite already
begun renegotiations. SA was not awarded the new contract despite offering the best quotation and
having the greatest safety record. SA denied the client's accusations of operational failures, including
accidents and other issues.
SA wishes to retain Chevron as a customer and intends to develop a strategy to reclaim Chevron.