MIni Cdse BestValue Computers BestValue Computers is a Jackson, Mississippi, com
ID: 385426 • Letter: M
Question
MIni Cdse BestValue Computers BestValue Computers is a Jackson, Mississippi, company providing computer technology, desktops, laptops, printers, and other peripheral devices to local busi- nesses and school districts in the southern half of Mississippi.Leroy Wells founded BestValue shortly after graduating from college with an information technology degree. Leroy began small but soon collected accounts looking for great value at reasonable prices with local service. When Leroy started his business in Jackson, he believed that anyone could build a computer. In fact, other than the processor and the software that runs computers, many of the components used are sold as commodities Leroy initially viewed his company as a value-added assembler and reseller of technology products. This business model was so successful that Leroy decided to expand from Jackson throughout southern Mississippi. To facilitate this expansion, VALUE CREATION IN BUYER-SELLER IExplanation / Answer
1) Best value is relying on selling a useful product (i.e. computers) at a reasonable price.
They also provide after sales service .They are creating value by assembling computers from components.
2) They are honest with customers and explain exactly what the company can provide in terms of computer hardware and software. In this way they can build trust and customers feel they are reliable.
3) The company has already built up a good reputation in the desktop market. Therefore the brand is well known and has equity or value and it will be easier for the sales reps to talk to new customers using a well known brand name.
4) They need to provide customers with more than they promised .They have to be honest and reliable.
5) The danger they face is competition from bigger companies like Dell, IBM and HP who are have already been selling in LAN’s in those areas. With the addition of LAN’s the value creation will change as the company will be more of a service provider than product provider.
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