Improving loyalty and share of business through relationship marketing and value-creation concepts
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Omega Inc. is an electrical maintenance firm, working with service maintenance in the Swedish regional and local power grid infrastructure and with various industry customers, including regular maintenance, renovation and upgrades of transmission lines and all sorts of power stations. Formerly being a subdivision of a large Swedish grid owner, Omega Inc. now stands on its own after an unbundling process. As a result, previously guaranteed assignments now risk being lost to competing companies, if Omega Inc. fails to transform its organization and adapt to the new, deregulated market requirements.
In an effort to attend this change of business environment, a new market division has been created, whose detailed goals or vision remained to be defined at the time of this thesis. The general idea for the market division is to act as a supporting entity towards local departments, assisting with marketing and sales strategies and maintaining a general, strategic overview of the company’s position in the marketplace as well as existing and potential customers.
Omega Inc. still is strongly influenced by a rather old-fashioned company culture, where certain behavioral patterns and company routines are not properly adjusted towards a deregulated market with an increasingly fierce competition. After noticing the high reputation that Omega Inc. enjoys in the marketplace, with a dedicated and highly qualified workforce, a large geographical spread and a generally professional attitude, this thesis focuses on researching ways to better utilize these strengths.
Based on the preliminary, supportive role of the market division, a value-creation or value co-creation approach was found to be promising, paired with influences from relationship marketing research. By developing value-related company routines and strategies while creating closer relationship ties with its customers, Omega Inc. may experience increased loyalty levels as well as an increased share of business. The new market division is suggested to become a key player in this new strategic endeavor.
The actual implementation and testing of the proposed model is not part of this thesis, so the verification of the success of the proposed model remains. Further, the impact of the proposed model on companies that must follow regulations for the public procurement in the utilities sector (Lagen om offentlig upphandling inom försörjningssektorn, LUF) must be assessed separately from the impact on privately owned companies.
Place, publisher, year, edition, pages
2015. , 88 p.
relationship marketing, value creation, value co-creation, communicating value, deregulation, electricity, electric, maintenance
Business Administration Other Engineering and Technologies not elsewhere specified
IdentifiersURN: urn:nbn:se:kth:diva-169525OAI: oai:DiVA.org:kth-169525DiVA: diva2:822044
Master of Science - Industrial Engineering and Management
Blomgren, Henrik, Associate Professor
Uggla, Henrik, Associate professor