Losing existing clients

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Based on the success of PAM and SAS program, ETI can offer these two courses online in a trail basic. These two courses have generated over 75% of company revenue during the years. More new customers should be attracted by offering these popular courses online. The advantage of this alternative is that ETI can maintain the original customers by delivering the courses in the traditional way. The initial cost of implementing online programming can be lower due to the increased volume of customers.

Furthermore, the market response can be generated. In a good respond from the market, ETI can take a further step into the online programming market. If not, ETI can cut off the operation instead of running full capacity into the online programming market. The disadvantage of this action is that cause ETI a high initial cost to implement. Recommendation After studying and analyzing the two alternatives, it has been found that the second alternative has the highest probability success.

That alternative is to offer online training programs on a trail basis. Since ETI has almost completed the growth stage, and is entering the maturity stage, ETI will have to pursue a new product or a variation of a existing product. This approach will maintain the existing number of long-term and highly satisfied clients, as well as allowing the firm a possibility of expansion. The alternative is consistent with the company’s history of relying on computer technology in developing and presenting programs.

Since product development is a key component in the maturity stage, this alternative will allow ETI to acquire additional market share from competitors. ETI will be the first agribusiness to do an online training program, so they will gain customers and clients from other competitors, and not losing existing clients. However, according to year one cost estimates shown in Exhibit B, this option will cost more than the original $400,000 Tom Jackson had projected. The biggest disadvantage of the first alternative is that the company will not be expanding.

In the short-term, this alternative will not affect the firm as it will be entering into the maturity stage of the product life cycle. ETI will continue to see high revenues and profits over the short-term, but will run the risk of losing business to competitors who offer online services. After comparing both alternatives, we believe that offering online training programs on a trial basis will best achieve the firms’ objectives and is realistic with the situation analysis.

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