The Schneirocksie Corporation was a multinational, $15 billion company with 9,500 employees. It was an asset-focused company that had been a successful manufacturer of a variety of electrical components— power distribution, controls, and maintenance and services division. When comparing with other companies, its reputation for being the safest, most reliable, and most durable equipment is well earned. Their products did not catch on fire and always perform well without failure. When Schneirocksie first started its business, it was product focused and engineers were the majority over all the employees.
However, they later found out that they had many major issues not with their equipment or products, but with their customer service. Schneirocksie’s key issues were their shipping distribution, compatible components and connections. Customer demand indicated that their previous approach would no longer work; lower-cost competitors from other countries are now capable of duplicating Schneirocksie’s products and services.
Another issue was their compatible components and connections. It is because some equipment was originally made by divisions and therefore their performance was not consistent through different occasions. Another alarming fact for the company is that while Schneirocksie products do not offering customers real solutions, they were 20%-40% more expensive that competitors’ products. As the sales team are more focused on the company’s profit without considering more about their customers, Schneirocksie’s business was largely damaged.
My first recommendation for Schneirocksie’s management team is to provide and sell solutions to its customers. They can do this by not only presenting the product solution but a ‘package solution’ that only Schneirocksie can supply. While doing so will require an effective strategic account sales position, the current company compensation system and company staff composition also need to be adjusted: Instead of pushing products, they must create genuine connections with other people. Positioning a ‘solution’ to customer allows Schneirocksie to solve the customer’s problem and eliminate competitors at the same time. Under these circumstances, they could win an advantage over other competitors when they are selling the similar products because the solution-selling methodology ensures lasting relationships with clients in which the goal is always to find new ways.
Also, I think forming a professional sales team will improve the way Schneirocksie is managed and their overall efficiency. The sales team is supposed to be focused more on the customers instead of the company structure itself. And it will change the way how Schneirocksie is managed, for example, since the current shipping distribution was based on company efficient rather than customer needs, the customers were not satisfied with the shipping methods and distribution. This change will ensure that clients get exactly what they need when they want it.
Furthermore, I believe Schneirocksie should regulate more for its sales department. As their main objective is customer interests, I would suggest more structured training for the salesforce so that they would be more knowledgeable for their products and the whole industry as well. Another customers-based suggestion would be to have all divisions make the same compatible products. So that customers do not need to have homemade make-shift connectors to accommodate different cables.
Overall Schneirocksie is a company that is known for high-quality electrical components, but not their excellent customer service. However, I believe with transition to more customer-based company, it will fix these issues, and ensure that the company has a successful future.