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Price War in Automobile Sector

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Introduction:
In today's environment, nothing is constant-not market growth, customer demand, product life cycle, the rate of technological change or the nature of competition. Three forces, separately and in combination, are driving today's companies deeper and deeper into territory that most of their executives and managers find frighteningly unfamiliar. These three forces are the three C's: Customers, Competition, and Change.

Customers- consumers and corporations' alike- demand products and services designed for their unique and particular needs. Individual customers-whether consumers or industrial firms- demand that they be treated individually. Once customers experience a superior service, they do not happily return to accepting less.
Start-up companies that carry no organizational baggage and are not constrained by their histories do not play by the rules. They write new rules about how to run a business. Technology changes the nature of competition in ways companies don't expect.
Moreover, the pace of change has accelerated. With globalization of the economy, companies face a greater number of competitors, each one of which may introduce product or service innovations to the market.
In such a complex and dynamic environment, where on one hand customers are more demanding and less loyal, and on the other hand, companies can only differentiate by providing excellent service to the customer, the companies cannot rely only on their own resources, but have to build good relationship with their suppliers and dealers. Only then, companies can ensure loyal customer base and can differentiate them selves in the eyes of the customer. This is the area where Partner Relationship Management (PRM) can help enterprises realize their goals and objectives.

The strategy of empowering partners by giving them "equal access" to data that internal employees have is the main concept behind Partner Relationship Management (PRM).
With PRM, the partner gets the lead and the company gets the results of what happened to the lead. This sort of connection is potentially very rewarding for both parties.
Companies receive the information necessary to accurately gauge their ROI and save the costs of other forms of communication. PRM is not just software, either. Rather, itís a business strategy to optimize the value of partner relationships.

Thus, it is clear that companies have to maintain partnering relations with their channel partners, both suppliers and dealers to gain maximum return on investment and gain competitive advantage. Thus, satisfaction and loyalty of channel partners is of utmost importance for the company.
But, despite its widespread use, customer satisfaction is often merely a proxy for what companies need to know to improve their business. While important, it is just one of many components that must be understood in order to drive customer loyalty and corporate profitability.

The present study has been carried out to find the satisfaction level of dealers in the automobile industry and the impact of satisfaction on loyalty of the dealers. For the study, dealers of a few two wheeler and four wheeler manufacturers have been considered. The various parameters considered for the study have been grouped into three broad categories, namely Strategic Relationship Issues, Service Relationship Issues and Operational Relationship Issues. The impact of these three parameters has been found on the overall satisfaction of the dealer. An undisguised questionnaire was administered and the following results were found out.

Number of Pages of Project Report:54
Package Includes: Project Report
Project Format: Document (.doc)

Table of Contents of Project Report:
Executive Summary
Chapter I
1.1 Introduction
1.2 PRM: A Conceptual Framework
1.3 Literature Review
1.4 Rational
1.5 Objectives
1.6 Organization of the Study
References
Chapter II
2.1 Scope of the Study
2.2 Hypothesis Formulation
2.3 Sampling Framework
2.4 Research Design
2.5 Data Collection Procedure
2.6 Scale Used
2.7 Statistical Test Used
References
Chapter III
3.1 The Indian Automobile Industry
3.2 Dealer Management at Maruti
3.3 Dealer management at Hyundai
References
Chapter IV
4.1 Data Analysis
Chapter V
5.1 Conclusion
5.2 Limitations
Annexure


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