Question

Rock Bottom Tiles has developed a new customer-oriented business model. Rather than maintain a network of showrooms across the country, the business will now let customers choose several styles that interest them from an online site, and will ship samples of each of the styles to the customer to test in their home free of charge. Once they have settled on a tile choice, Rock Bottom will send a representative to their home to schedule installation. The company has determined that busy middle-class customers will value the convenience of the new model, which allow them to upgrade the look of their homes without spending time browsing showrooms. The new model will be created by selling the old showrooms and shifting resources to the new online site and regional offices for sales personnel. What question remains for Rock Bottom to ask in order to put its strategy into action?A) Why does the business model create value?
B) What activities need to be performed to create and deliver the offerings to consumers?
C) How are the offerings to the customers created?
D) Who are the main stakeholders who will be performing the activities?

Answer 1

Answer:

The correct answer is B. Rock Bottom Tiles will have to determine what activities will need to be performed to create and deliver the offerings to consumers.

Explanation:

Having concluded that the customers will value the convenience of shopping and making decisions from their homes through an online portal.

The next step will be to determine how to create and deliver enticing offerings, and how quality service delivery will be achieved. Especially now that the face to face interaction with customers is no longer available.

For example, a customer may not be attended to immediately if he/she has a complaint, as in the case of showrooms.

Answer 2

Answer:

B) What activities need to be performed to create and deliver the offerings to consumers?

Explanation:

The only part that Rock Bottom's model is missing, is how will the products be delivered and installed in the customers' houses or offices. Once the customer chooses the sample he/she likes and the sales representative makes the sale, then what happens?

According to this model, anyone in the country can request their products as long as they have access to the internet, but will Rock Bottom have enough workers and products at every place in the country? Or do they plan to sign outsourcing contracts with masons or what other idea do they have?