1701

Problem

Discuss why a firm that plans to enter a new market segment may have to develop new internal business processes to serve customers in this segment.

Step-by-step solution

Show all steps

Step 1/2

Internal Business Process

Internal business processes are an important function of the business. It refers to the processes internal to the organization. Some of the internal processes are as follows:

1. Customer relationship management

2. Innovation management

3. Supply chain management

Internal business processes remains unique to an organization. These are the forces that grant the company a competitive advantage.

For example: Amazon boost to its supply chain management process, which enables it to deliver product at low cost than its competitors.

Step 2/2

The need of the segment or market varies with the location and product. Thus internal processes and strategies must be reshaped to meet he need of the new segment.

Further the customer segment varies with market and thus the preference. Internal business process is requiring researching about customers taste and preference and making changes accordingly.