In accordance with the conversation with Elvin Teoh, it is obvious that his talent and foresight have going a long way towards promoting the growth of the company. Of course, most successful entrepreneurs were not born with genius. The talent can be determined by their prior education, training, work experience and family background. Elvin Teoh graduated from Victoria University and majored in strategic and financial management, which lays a professional foundation of his career.
Besides, the tough childhood experiences and his family background also made him become an ambitious man with courage, insight, self-confidence, tolerance of ambiguity and strength of mind. Depending on his personality, Elvin can be competent for maximize wealth and expanding the overall strength of TKT. Loyalty Card Program TKT Loyalty Card Program is one of the innovation and change strategies introduced by Elvin Teoh since 2006. The customers can collect points to redeem gifts and other benefits from TKT.
The most important function of this membership card for TKT is to garner the customer information and examine their buying pattern. With the loyalty card, customer can be identified easily, so that TKT can record the latest information about the cardholder. With this function, the management can examine the buying pattern of customers and decide to order those products that most prefer by their customers. They can also check the product whether is time to repair or still under warranty period. It has given them a good opportunity to track the customer record and serve them better.
Besides that, Loyalty Card also created a closer relationship with customers. Indeed, this membership system has also given extra benefits for the cardholder likes give gift voucher for them annually to make them feel exclusive for being the members. Fix Price Policy In association with the launched of Loyalty Card Program, TKT altered their pricing strategy by providing a reasonable fixed price for all their products, which mean there will no longer have bargaining between the customers and the sales personnel.
This pricing strategy give benefit to the customer as they need not waste time in bargaining for a lower price while the sales personnel waste time in entertaining them. With the reduction in time waste, the sales force can focus more on the customer service and also after sale service. TKT intend to provide excellent service by fixing the selling price so that customer will see them in different way. In this way, they could fix their selling price and provide the benefits to the customers through their Loyalty Card Program. External Factors Information Technology
TKT led the household electrical appliances industry by installing a computerized system to track inventory. This inventory management system has played a vital role in their success. Their in-store inventory is kept at a minimum, allowing them to achieve maximum efficiency of their store’s floor space. This system also allows TKT to better communicate with vendors when supplies need to be replenished. This strategy helps TKT lower inventory cost, which allows them the ability to meet the demands of local consumers and the ability to avoid overstocking.
Thus in return giving them a higher operational efficiency and keeping their prices significantly lower that other competitor. Each TKT branch had a computer that tracked sales and performed accounting functions. Full inventories of all branches were kept in a central computer at headquarters and were updated daily. To improve productivity, TKT incorporated the electronic scanning system at the point of sale as well. TKT meets the needs of their customers by incorporating latest technology into their branches.
Elvin Teoh said TKT gained a competitive edge over its rivals by incorporating the latest advances in technology into the before, during and after sale service process. This created efficiency at the point of sale as well as inventory management. The use of latest technology increased TKT’s image and reputation as a company that wanted to satisfy the needs of their customers. External stakeholders – Relationship with Suppliers In light of the broaden win-win economic cooperation idea, TKT formed a cooperation relationship with their suppliers.
Elvin Teoh explained that TKT has leveraged its volume buying power with its suppliers. It negotiates the best prices from its suppliers and expects commitments of quality merchandise. The purchasing agents of TKT are very focused people and they are properly trained. Even though TKT was tough in negotiating for absolute rock-bottom prices, the company worked closely with suppliers to develop mutual respect and to forge long-term partnerships that benefited both parties.
TKT built an automated reordering system linking computers between suppliers and its headquarter and branches. The computer system sends a signal from TKT to supplier identifying an item low in stock. It then sends a re-supply order via internet, to the suppliers’ nearest factory, which then ships the item to TKT. This interaction between TKT and supplier is a win-win proposition because with better coordination, supplier can lower its costs and pass some of the savings on to TKT.