For this assignment, read the case study, “IBM Challenge: How to Serve a Diverse Mix of Demanding Customers,” on page 91 of your textbook. Once you have read and reviewed the case scenario, respond to the following questions with thorough explanations and well-supported rationale.
- Describe how IBM should develop a portfolio of relationship strategies to meet the needs of its diverse B2B customer groups. How might this be different than a company that services a B2C group?
- With IBM, different customer groups are more costly to serve than others. How should such cost differences be reflected in the particular relationship strategies that IBM follows?
- What strategies can IBM implement in order to increase the switching costs of customers in Group B or Group C?
- Since IBM is already enjoying profits from Group A, how might the company increase the profits that it derive from Group B and Group C? Are there any ethical implications? If you believe there are not any ethical implications, defend your position.
Your response should be a minimum of two full pages, double-spaced. References should include your textbook plus a minimum of one additional credible reference. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style.