Angie's List Case Solution
- Angie's List currently has a three-tier set of service offerings for members. What is your evaluation of that strategy?
Angie list, after facing a sudden decline insales, planned to devise a new strategy which would sustain the dropping sales and popularity. In order to do so, the company segregated the market into three main tiers namely Basic, Plus and Premium. These three tiers carried different sets of offerings and the level of services. The bifurcation of market and customer into the three tiers allowed the company to cater the customers and target the needs accordingly.The bifurcation of the market allowed Angie’s list to setits offering and develop a marketing plan according to the behavior of each group. Since the unified strategycould not harvest generate more benefits and additionally may lead to dissatisfaction of customers with the threat of failure of the single strategy, due to these reasons the company developed a different set of strategy and business plan for each segment. The strategy to divide the market in tomicro group proved to be a good strategy as it allowed the company to understandthe needs, demands and behaviors of certaincustomerbase. AsAngie’s list hasmany types of customers looking for different solutions and type of data, it proved to be a precise solution which was time saving and shared the content only relevant to customer. Moreover, it offered a competitive advantage to the customers, because the customerswith premium account received additional service with guarantee of work and offered a more in-depthdata than those who were using basic account.The strategy helped the company in maintaining itsbrand image as a solution provider or data provider to different segments. The three tier strategy enabled the company to tap larger markets and thus,increased its market share, as well as it enhanced its brand image and brand value. It additionally helped the company to gather a large amount of data from all kinds of clients, making the data base authentic and reliable. In addition to this, the three-tier strategy enabled the company to expand its offerings and put more focus on each and every tier, resulting in morecustomer satisfaction through experience and product offerings by detailing the very micro-scopic issues. Moreover, the three tier strategy allowed thecompany tomanage the customers and analyze where itstoodand what kind of clients it had on board. This allowed the company to forecast the sales of next year accordingly, as well as, it helped he company gauge its sustainability factor which shaped its business strategy in future time.
Lastly, it helped the company manage its customers and offer exceptional customer service on the basis of data. Itmaintained the experience of the customers and curtailed the offering with continual innovation in tiers that could specifically target the focused audience.Hence,with the help ofthis strategy, the extent of error and wrong strategy to tap and retain the customers was reduced.
- Evaluate the competitive environment. Does Angie's List have a competitive advantage? What are the challenges and opportunities for Angie's List moving forward?
Angie’s list started its operations even before Googleand Yelp came into the industry. Due to this reason,Angie’s List hasa large data comprisedof old and newcustomer/clients. This bulk of data has helped thecompany to forecast and offer a more authentic solution or review on certain fields which will be supported by olderreviews.The mix of older and new reviewoffers a competitive edge to the company in terms of data availability and exact forecasting or feedbacks.Moreover, one more thing that offered the competitive advantage to Angie’s List wasthe use of Big Data, whichenabled the company withbulkinformation arranged and right placed according to the need of the segment. Moreover, it engraved itsyellow page strategy into itsbusiness model, which helped in maintaining the competitiveadvantage, as many new players lacked such technique.
Lookingin-depth of competitive environment, Angie’s List faced immense competition from the externalmarket. Just after the launch of Angie’ list, Google andYelpentered the market and captured a largecustomer base by offering free service, which were the same services thatAngie’sList was offering at subscription fees or membership. Thistrendnegatively affectedAngie’sLista big deal, and it became difficult for the company to justify the fees of subscription, when other competitors were offeringalmost similar service. Moreover, other local players also entered the market such asHomeadvisor, Houzz, Porch, Amazon home services, task rabbit and trip advisor. Though the business plan differed on medium scale however,the parent offering remained free, which created a deadlock for the organizationas whetherto pursuethe existing strategy or go free. Thecompetitionintensified as otherplayersstarted entering the industry, deducting the inertia and potential of he market........................................