Heightening Market Competition at Oregon Company Case Study

Heightening Market Competition at Oregon Company - Case Study Example Oregon Company, established in 2000, is in financial crisis and needs an urgent strategic decision from the management. The company is sinking deep in the pit of financial anguish facing the economy and its clients are struggling for their survival. The new CEO, Doug Graves is focused on restoring the Company’s glory days by focusing on the marketing strategies of the firm and expanding its scope of operation by bringing in new income generators. However, differing opinions in the company’s management board concerning what strategies should be adopted present a challenging situation in choosing the best path for the company’s recovery and survival in the future. In the case, the company has a business model that focuses on establishing the long-term relationship with its clients. The company’s customer retention rate is over 93 percent, which is a perfect platform for revenue generation. The higher the rate of customer retention for a company, the higher w ill be the market share and hence the rate of revenue generation (Samanta & IGI Global, 2014; Williams & Curtis, 2008). Unlike its competitors, Oregon Company markets website products to client association, ensuring bulk purchase, thus lower cost of purchasing for customers, $5,000 against competitors’ $20,000 to $100, 000 purchase prices. This boosts the buying power of its clients, assuming competitors do not engage in price wars. Site design assistance to clients also positions the company above its competitors. The company also has an edge over its competitors in identifying clients associations and thus easy market targeting. However, it takes a long time to generate a new website for clients despite the fact that most activities are mechanized. This, in turn, affects customer service efficiency (Verma, 2012).