CPM Analysis

 

In our CPM matrix the most important factors are Location and Facilities, Service Quality and Efficiency and Good Relation with the customer, followed by Marketing and advertising, Production Capacity and customer loyalty.

 

To begin with, location and facilities is one of the most important because it allows the company to respond efficiently to its environment and respond to customers better than the competence. Likewise in a city like Bogotá where traffic congestion is a daily problem, to have a strategic localization can reduce times of transportation during home delivering service, which is our main type of service.

 

Secondly, we assigned a high rate to the having good relation with the customers and service quality and efficiency because when a company offers good quality and service, its customers feel satisfied and recommend the company to their friends, family, workmates, etc.; making that company’s reputation grows and get new potential customers. In Colombia, like in many countries, this is a kind of free advertising and many times is the best one, becoming a useful factor to company’s growth.

 

In third place, we located Marketing and advertising and production capacity. The first one is important by obvious reasons, if new potential customers do not know our brand they will not know that we exist and we are confinable. The second one, is important because the organization has to have the necessary tools to satisfice its demand and to be efficiently respect to the competence.

In our case, to location and facilities we assigned a rate of 4, because our centrically location in one of the richest parts of Bogotá is a big advantage respect to our competitors. We are located in 116th street, nearly, there are many residential buildings, offices and many bike lanes, and this becomes an advantage because our employees who deliver food in bike can go safely than other parts in the city and avoiding the traffic. Our competition also has a rate of 4 (Bawana Juice) and 3 (Freshii), however many times they are not close enough sometimes making that deliveries get delayed.

 

On the other hand, we searched for some customers’ opinion about Bawana and Freshii through Domicilios.com and paginasamarillas.com and we found more negative than positive opinions, related mainly to bad service and lack of cordiality by their employees. We consider it as a strategic point to take advantage because as we are new in the market, we can build a positive image easier than them because we still do not have negative opinions.

 

With respect to Marketing and advertising, Production Capacity and customer loyalty, we have a slower rate than our competence (2, 2, and 1 respectively) because we have to take into account that our budget is very limited and we are new in the market, and our competence has more experience and budget. However Bawana and Freshii don’t have many recognition in the market and that is an advantage for us because they also have not stablished many loyal customers. As a consequence, our entrance in the industry would be easier.