International Business Master Case Study Example | Topics and Well Written Essays - 1250 words

International Business Master - Case Study Example Customers are not just people outside a corporation. It can be the people at the upper crust of an organization, or the employees. In fact, Mountain Equipment Co-op's customers are also the members (part-owners) of the co-op. Since the market for the co-op's products is unique, it needs to ensure quality, which increase value of the product for the customer. Therefore, the co-op uses extreme care to select its range of products to be manufactured. It wants the suppliers to provide products that are both functional and durable. Furthermore, the co-op offers a lifetime guarantee of its products to make the customers feel that the maintenance of the equipment is the duty of Mountain Equipment Co-op. This increases value for the customer because the customer no longer has to worry about the cost of repair of the equipment. Furthermore, the co-op also offers its members to trade their equipment online or through attending a seasonal trade session (n.d.). Moreover, the co-op values human r ights and business practices in the light of ethics. It continuously strives to protect human rights by inspecting factories where its products are manufactured. Inspection involves working conditions, worker benefits, and worker pay. Since the customers really value fair business, the co-op utilizes this opportunity to satisfy its members by giving a portion of their sales revenue to human rights groups. The co-op also uses an environmentally safe heating and air-conditioning system at its Ottawa outlet, indicating the co-op growing concerns about the environment. Moreover, the co-op continues to provide exceptional service to its customers through training. As mentioned before, this is a unique market and new outdoor freaks might not know how to use the equipment. This is an added value for the product because the customer knows that training would be provided to utilize the product to its fullest. The co-op is also using support activities to increase its member tally and revenue . For example, the co-op is constantly monitoring latest technology in the industry to develop the most advanced products, high quality products, and environmentally safe products. The most important value activity which the co-op uses is the power of its members to have a say in the co-op's operations and running. The co-op has 2.5 million members who are part-owners of the company, and have a say at the company's meeting. This activity attracts potential members and customers, and they can run the co-op according to what satisfies their needs. Q2: What is the co-op's generic strategy Describe it. Mountain Equipment Co-op generic strategy is the cost strategy. Mountain Equipment Co-op aims to achieve growth through a series of cost cutting measures and cost reductions. Firstly, Mountain Equipment Co-op has a loyal customer base, and they use this strong factor to bargain for reasonable prices from suppliers. Due to the high bargaining power of the co-op, suppliers have to give in. Furthermore, the mountain co-op has a small workforce. It strives to keep a small workforce through the concept of self-service at its outlets. This way, even the limited number of employees is happy because the co-op