2. Regarding Billcutter.com’s current operations, what are its strengths and weaknesses?

What
resources, capabilities and core competencies greatly benefit the company? In what areas is the
company potentially weak or require managerial attention? What is your overall conclusion
regarding Billcutterz.com’s current operations?
Billcutter.com’s business idea was innovative and unique at the time. We could agree that everybody
wants to save money, and this is what Billcutter.com was offering. However, one thing I concluded from
the case was that the owner, Barry Gross, did not truly believed on the potential of his own business. He
failed to foresee the potential increase of business as the interview aired since it did not prepare well
enough from the massive increase of customers.
One of the company’s strength was its great ability to negotiate with providers to reduce customers’ bills.
The company also had no competition which made it easier for them to enjoy big profits. Furthermore, as
opposed as its indirect competitors who provided tools to help customers, Billcutter.com took the process
one step further and did the negotiation themselves on behalf of their customers. This was one of the
company’ core competencies. Moreover, the company had great success on gaining referrals from existing
clients, which is one of the best of ways of advertisement since its mostly free. It also had success on

m
building name recognition through social media marketing. All of this thanks to the great service they

er as
provided as they reduced customers’ bill significantly. The owner’s past experience on those industries

co
and the ‘Savings Experts’ were the companies’ best resources and capabilities, which greatly benefited the

eH w
company.

o.
rs e
However, the current operations of the company had a couple of big weakness which required significant
managerial attention. The company’s lack of skilled ‘Savings Experts’ and lack of an established
ou urc
customers stream system which could provide a predictable growth that would allow the company to be
prepared for upcoming business. Barry Gross had to constantly train new employees and most of his time
was devoted to this instead of finding new strategies on how to grow the revenue and decrease expenses,
o

which was a big issue for the company as a result of the massive increase of customers during the year
aC s

2014. Furthermore, the company relied heavily on customers referrals and media marketing instead of
vi y re

finding new ways to established a fixed customer stream. This is something management must address
because customer referrals will not last long, especially if new competitors with better service enter the
business.
ed d

Overall, I think that Billcutterz.com did a great job at acquiring new customers and providing a fantastic
ar stu

job in other to obtain new referral and media marketing the way it did. However, I believe that it failed to
prepare for the success it had and did not plan on new ways to attract customers beside referrals. It has to
find ways to attract a predictable number of customers in order to be sustainable. The company also has to
find new ways to train employees faster in order to have more employees available for sudden increase of
is

demand.
Th
sh

This study source was downloaded by 100000825278756 from CourseHero.com on 05-05-2021 07:00:48 GMT -05:00

https://www.coursehero.com/file/29963772/Case-5-Billcuttercomdocx/
Powered by TCPDF (www.tcpdf.org)