New products will also reduce the defection of existing customers of Serco Group
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New products will also reduce the defection of existing customers of Serco Group Plc to its competitors.
Bargaining power of the customer
As with any customer, myself included, I want to pay the lowest price possible. The smaller or larger the customer base is demanding a product is what drives the price of the product or service.
Serco’s customer base is largely government-affiliated which narrows the pool of potential customers. They can start by focusing on groups outside of their comfort zone in order to grow and enlarge the customer base. This reduction will streamline customer power and allow for a smoother transition to sales and production for other customers.
They also have a tendency to innovate based on a product that is already available, just developing it a little more efficiently. Instead, they can invest more in R and D and start to develop the new products themselves.
Bargaining power of supplier
Focus heavier on the relationship between supply chains by inventing multiple suppliers instead of focusing so heavily on already established suppliers.
Again, focus on more R and D, especially in the product material department. Finding alternatives to already manufactured products made out of either “green” materials or cheaper materials. This will be extremely beneficial with the price of any material continuously rising and falling. Essentially finding substitutes for materials already in use.
Another way to grow is using Wal-mart as an example. Walmart that have dedicated suppliers that rely heavily if not entirely on their support. Serco can use this model to develop and find partners that need their business as much as Serco needs them.
Serco needs to work on its sustainable differentiation. Price is always a key point in differentiation, sustainability, brand presence, and most importantly for Serco is innovation.
They can also work on building a scale to compete better with rivalries. Instead of focusing on price to government agencies, they can do a better job in focusing on the individual buyer or smaller companies.
FernFortUniversity. (202). Serco Group Plc Porter Five Forces Analysis. Retrieved on 15 November 2021, from http://fernfortuniversity.com/term-papers/porter5/lse/1596-serco-group-plc.php.
Agade, G. (2020). How to create sustainable differentiation in a competitive market. Retrieved on 15 November 2021, from https://businessday.ng/.