Kimura K.K. Case Study the Research Proposal

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Given the conditions described above, Pramtex was forced to do
something in order to maintain Kimura K.K.'s interest in the company's
machines. As a consequence, Pramtex decided to lower the prices by 10%.
But Kimura K.K. was not satisfied by this discount. The company was
expecting a significantly bigger discount. The machines' prices practiced
by Pramtex are very high, which means that a 10% discount does not make
much of a difference for Kimura K.K.
It is obvious that Kimura K.K. would rather buy cheaper products that
are not as good as Pramtex products are. Given the circumstances, Pramtex
cannot win this account with these prices. Pramtex was the favorite
supplier for Kimura K.K. and the company tried to allow Pramtex to do
whatever they can to please Kimura K.K.
It seems that Kimura K.K. have practically made their mind about this
matter. The only thing that Pramtex can do in order to determine Kimura
K.K. to buy the Spartacus machines is to significantly lower the prices.
Another issue that must be taken into consideration by Pramtex when
developing business relationships in the future is represented by the fact
that Pramtex was not able to create customer loyalty. With the advantages
that Pramtex presents and the relationship that the company has with Kimura
K.K., it is unacceptable that Pramtex did not manage to become the first
choice for Kimura K.K.
It seems that Pramtex was unable to develop a suitable product
strategy that would work best for Kimura K.K. Any product strategy is
consisted of engineering issues, production and distribution activities
(Crow, 2001). Also, through the product strategy, the company must evaluate
the expectations that customers might have regarding the purchased
products. The company must also anticipate and analyze any possible actions
that its competitors might take in order to counteract them and not to lose
ground in the favor of other competitors (Kivisaari, 2004).

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From these points of view, the product strategy that Pramtex applied
in the case of Spartacus machines and Kimura K.K. was incomplete and was
not suitable in this case. Regarding engineering issues, Pramtex behaved
perfectly, providing the highest quality machines.
The distribution process was not so perfectly developed, since Pramtex
omitted to send Kimura K.K. an important spare part with the machines. This
situation proves that Pramtex may not have taken seriously enough the
Kimura K.K. situation. This might have been the decisive factor that led to
Kimura K.K.'s choice of favoring a local competitor of Pramtex.
Pramtex was also unable of anticipating competitors' moves. Even more,
Pramtex was probably not interested at all in analyzing competitors'
behavior. In such a case, the company would have been aware that its
competitors will practice significantly lower prices compared to Pramtex.
In order to counteract such difficulties, it is recommended that Pramtex
applies the IBM business model (Business Innovation, 2008). This way,
Pramtex will be able to anticipate competitors' actions.

Reference list:
1. Turpin, D. (2001). Kimura K.K. Can This Customer Be Saved?
Retrieved November 15, 2008.
2. Kivisaari, Eino (2004). Product Strategy. Technology
Management & ICT Business. Retrieved November 16, 2008 from
http://www.tml.tkk.fi/Opinnot/T-
109.410/2004/kalvot/Tekjoht6s04.ppt#256,1,Product Strategy I.
3. Crow, Kenneth (2001). Product Development Strategic
Orientation. DRM Associates. Retrieved November 16, 2008 from
http://www.npd-solutions.com/strategy.html.
4. IBM's three types of business model innovation strategies
(2008). Business Innovation. Retrieved November 16, 2008 from
http://www.unitedbit.com/ibms-three-types-of-business-model-
innovation-strategies/......

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