Research Proposal on "Kimura Kk"

Research Proposal 4 pages (1188 words) Sources: 4

[EXCERPT] . . . .

Kimura K.K. Case Study

The case study presents the situation of Pramtex Ltd and its

relationship of Kimura K.K., a Japanese customer. The main issue of the

case study relies on the fact that Pramtex was supposed to sell to Kimura

K.K. three additional Spartacus machines. However, Kimura K.K. changed

their mind and decided they will no longer respect their agreement with

Pramtex and they will not buy the extra machines anymore.

The problem is even more serious, since it is emerging after Pramtex

had lost another customer in the same week. Even more, Pramtex is

completely unaware of the reason Kimura K.K. had decided not to buy the

company's products anymore.

However the main question is what are the reasons that led to this

decision. In other words, Pramtex must analyze why Kimura K.K. will not buy

the Spartacus machines from Pramtex, especially since Kimura K.K. did not

motivate their decision.

When analyzing the situation and trying to find out the reasons that

led to this decision, the chronology of these events is very important.

Before this situation, Pramtex and Kimura K.K. had a very strong business

relationship. Pramtex is one of the best optical disks manufacturing

equipment producers, while Kimura K.K. is one of the most important

customers for Pramtex.

Kimura K.K. has always been a fan of Pramtex products. But out of the

sudden, Kimura K.K. decides to reject the offer from Pramtex, giving no

reasons for this decision. Sony was the other important customer that

Pramtex lost in favor of local competitors.

At first, Kimura K.K. declared that "Pramtex had the best and most

technologically advanced equipment in the market" (Turpin, 2001). Even

more, Pramtex lowered the machines' prices by 10%, hoping that Kimura K.K.

would become loyal to Pramtex. In such conditions, Pramtex would gain other

important customers also that would follow the example of Kimura K.K.

In other words, Kimura K.K. agreed to the quality of Pramtex products

and the price was significantly lower. Still, Kimura K.K. decided that the

quality of Pramtex products and the 10% discount were not worth it.

As developed in the case study, the most important elements that

affect the buying decision for Kimura K.K. are:

. Technological quality of the product

. Price of the product

. Having the products delivered on time.

Each of these elements has its degree of importance in making the

buying decision. Regarding quality, Pramtex products are considered by

Kimura K.K. to be the best in the market. However, there is a downside

accompanying this quality, and that consists in high prices.

Pramtex products' prices are considered to be too high for Kimura K.K.

Two competitors of Pramtex have already presented their offers to Kimura

K.K. Competition is very tough for the Kimura K.K. account. One of the

competitors offers good quality products at much lower prices. The other

competitor offers good quality products, lower prices, the company has

supported Kimura K.K. since the company began its activity, and it also

presents the advantage of being near Kimura K.K., which would significantly

diminish transportation costs, and the maintenance process could be

performed faster.

Another extremely important factor that influenced the decision of

buying these machines consists in receiving the products on time. Kimura

K.K. had recently started a very important collaboration with Disney

Studios. Therefore, Kimura K.K. cannot afford to lose time with these

machines, since any delay could severely affect the collaboration between

the company and the studios. Of course, all of the competitors that

presented their proposals to Kimura K.K. have promised to deliver the… READ MORE

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