Impact on Technology on Sales Case Study

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Impact on Technology on Sales Case Study

Summarization of Case Study

Having automated the online ordering process by first creating an

electronic catalog which is linked to ordering workflows, G. W. Pergault is

starting to see the cost benefits of having an e-commerce strategy that

works. The newly-arrived CEO Celia Fiorni has not only automated the

online ordering workflow, but also spent $20M in revamping and redesigning

the entire company website, in addition to automating 4,000 pages of the

company's catalog to make its products available online as well. Analysis

of sales for the $4.2B supplier or Maintenance, Repair and Overhaul (MRO)

products shows that 80% of the customers generate only 20% of the sales,

while 20% of the largest customers generate 80% of the sales. The average

order size of 80% of the customers is significantly smaller, most likely

more frequent, and often not as nearly customized as the orders from the

larger customers. As a result of these three factors, the company has seen

these smaller customers take advantage of the online ordering applications

that are part of the new website. The new CEO, Celia Fiorni, wants to also

see the remaining 20% of customers who are 80% of total revenue, also move

to online ordering. She has asked the Sales teams to launch this

initiative to the company's largest customers, who collectively account for

over $3B of the company's total revenue.

Understandably, the sales managers who are responsible for these top 20% ofGet full Download Microsoft Word File access
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customers are resisting, and rightly so. Their concerns are first from a

relationship standpoint, as having a customer who buys in that much

quantity needs personal assistance in tracking orders, managing pricing,

and all manner of services issues. There is also the fear of being

replaced by online initiatives, and also the major resistance concerning

losing commissions on those sales placed online. Taken together, these

factors are leading to a high level of resistance in the company to rolling

out the online ordering application to the top 20% of customers at G. W.

Case Study on Impact on Technology on Sales Case Study Assignment

Pergault.

Questions at the end of the case study

1. What advice should sales manager Ken Sutton give to his company

president, Celia Fiorni, in order to improve her e-commerce plan and make

it successful?

The new CEO fails to recognize several critical dynamics at play within the

sales force, foremost being the sales managers' strong level of loyalty and

commitment to their customers' satisfaction, and second, how the years of

service these sales managers have had with large accounts have translated

into financial security for themselves. The greater the level of service

to these key… [END OF PREVIEW] . . . READ MORE

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APA Style

Impact on Technology on Sales.  (2007, July 17).  Retrieved October 21, 2020, from https://www.essaytown.com/subjects/paper/impact-technology-sales-case-study/677165

MLA Format

"Impact on Technology on Sales."  17 July 2007.  Web.  21 October 2020. <https://www.essaytown.com/subjects/paper/impact-technology-sales-case-study/677165>.

Chicago Style

"Impact on Technology on Sales."  Essaytown.com.  July 17, 2007.  Accessed October 21, 2020.
https://www.essaytown.com/subjects/paper/impact-technology-sales-case-study/677165.