Case Summary (Background)
The company’s new ISP experienced difficulty attracting new clients, given the fact that more established brands had a firm grip on the market. Entry into a new market with established ISP providers is a daunting challenge and the implementation of marketing strategies is essential because it will allow the firm to gain market share. The company targets enterprises as well as residential clients. High marketing costs were perceived as a barrier to entry. The FAS & 5Ws + H process is essential in business because it facilitates problem dissection and resolution in addition to aiding in the development of effective strategies.
Facts, Assumptions, and Sentiments (FAS)
Entry into a new market with established ISP providers is a daunting challenge, given the fact that established brands are highly competitive. The implementation of strategies that will increase the company’s visibility is essential because it will allow the firm to gain market share. The assumptions made include the belief that the marketing process will be capital-intensive and that consumers are skeptical of new ISP providers in the context of poor service delivery by existing companies. The sentiments include the notion that clients are easily incentivized by free offerings and that zero installation fees will likely attract a high number of clients.
Who, Why, When, Where, What and How (5W + H)
The 5W’s and H are the basic questions that every individual must ask in the process of gathering information. The objective is to obtain a factual answer for each of the outlined questions in order to provide clarity or find a solution to a specific problem. The framework is useful in business because it facilitates the contextualization of specific challenges and opportunities. The framework is useful in this case, given the complexity of the issues the company had to address as it entered a highly competitive market.
The company’s new ISP experienced difficulty attracting new clients, given the fact that more established brands had a firm grip on the market. The challenge was encountered at the start of the business when the brand was relatively unknown. The firm conducted its operations in Lagos, Nigeria, and it focused on the sale of internet services to the enterprise as well as residential consumers. The prioritization of sales was necessary in view of the fact that they directly impacted the organization’s growth potential. The fact that most ISP companies offered installation services at a cost provided a unique opportunity. The provision of free installation services incentivizes clients to join our network, which significantly increases sales over a three-month period.
Levels of Certainty
There was an expression of relative certainty in view of the fact that all the potential outcomes were. The decision was made on the basis of the outcome, which was to increase the sales volume, which would translate to significant financial gains. In addition, the company expected a significant rise in market share despite the existence of strong competition from established rivals.
The Seven Steps in the Decision-Making Process
The first step is the identification of the decision to be made, which was the need to gain entry into a highly competitive market with limited resources to spare. The next step is to gather vital information by researching the service and price offerings of competing institutions. The third step is the identification of alternatives, such as lowering monthly subscriptions or offering free installation. It is then important to weigh the evidence for each alternative. Low subscription plans would negatively impact the company’s growth. The fifth step involves choosing among the alternatives, after which specific action is taken. Finally, the decision must be reviewed to assess the plan’s overall viability.
Human Factors Impacting the Case
The ease with which the company can access trained personnel in the new market will determine the effectiveness of its entry strategy. This is directly tied to the quality of interpersonal relationships, which impact overall productivity. It is also worth noting that the precision of communications determines the efficiency with which tasks are completed. Emotional intelligence in organizations reduces the frequency of conflict, and employee engagement enhances productivity, which is necessary for continued growth. The final human factor impacting this case was the willingness of consumers to adopt new services in the face of dominant competition.
Perception (Barriers)
There are numerous perceptions associated with entry into a new market, as demonstrated in this case. There is a perception that marketing costs are often high and that the existence of multiple dominant companies presents significant competitive challenges. In addition, the increased apprehension from clients as a result of exposure to low-quality services and the high costs of doing business would negatively affect the bottom line. Finally, challenges associated with product differentiation and limited access to effective distribution channels are likely to erode the company’s competitiveness.
Organizational Factors
The consideration of the company’s objectives is vital in view of the fact that they outlines its key priorities. It is also important to determine whether or not the resources required for market entry are available. The resources will determine the choice of marketing strategies that will be implemented. The organization’s willingness to commit specific resources determines the overall mode of entry. It is important to consider all the exit barriers because markets that seem attractive today may become tedious in the future. Familiarity with the new marketing environment and the organization’s future strategic expansion plan are important factors.
Cultural Factors
The cultural factors that impact this case are the dominant language and currency used in Lagos, Nigeria. It is important to be able to communicate with clients and receive their payments. Material cultural preferences, such as the technological goods that are common in the market, are essential factors to consider (Wales et al., 2019). Cultural preferences for specific services, such as internet access, must be considered in the Lagos region. The level of education in a selected market may determine the degree of uptake of Internet services. Religion influences various aspects of life that may determine a population’s perception of Internet services. The community’s ethics and values may determine the degree to which ISP services are accepted.
Types of Reasoning Utilized
The case demonstrates deductive reasoning skills in view of the fact that all the market possibilities were examined comprehensively. Observations such as consumer preference for free installation services were used to make decisions. In addition, the inference that consumers will join the network was made from the premise that free installations will increase enrolment. The conclusion that the company would increase its market share was drawn from the idea that quality services attract consumers. The outcomes were deduced from the observation that consumers would find the new product appealing.
Concluding Comments/Reflection on the Exercise
The work environment is characterized by frequent instances where decisions must be made to address emergent issues. All the decisions must be made carefully because they impact the entire organization. The exercise is essential in business because it facilitates problem dissection and resolution in addition to aiding in the development of effective strategies. It is my view that the FAS & 5Ws + H process has made decision-making processes easy.
References
Vaskelainen, T., Münzel, K., Boon, W., & Frenken, K. (2021). Servitization on consumer markets: Entry and strategy in Dutch private lease markets. Organization & Management, 24(1), 231–250. Web.
Wales, W., Gupta, V. K., Marino, L., & Shirokova, G. (2019). Entrepreneurial orientation: International, global and cross-cultural research. International Small Business Journal, 37(2), 95–104. Web.
Zulkipli, Z. A., Mubarrak, M., Yusof, M., Ibrahim, N., & Dalim, S. F. (2020). Identifying Scientific Reasoning Skills of Science Education Students. Asian Journal of University Education, 16(3), 275–280. Web.