Lesson 1: Case study on Listo Systems
Parit Agrawal
International American University
MGT 500 Organizational Behavior and Leadership
Verta Midcalf & Om Sitaula
September 15, 2014

Introduction to Listo Systems
A well renowned name in graphic service agency in the early 1990’s was Listo Systems. In a very short span of time, its innovative and dedicated management was able to grow into the top graphic service companies of the world, in a very short span of time. Since then the company has faced a lot of changing market situations. The technology has completely changed and so have the demands of the customers. Alongside it’s facing threats from lots of new entrants into the graphic service agency. Once a market dominator is now feeling the shift of power from their hands into its customers.

Review/Analysis of the Case
The demands and the expectations of the customers are changing in short span of time. Customers want good quality goods and services at the time and place they want. This is a big problem for many businesses; they need to take care of such demands to maintain a good position in the market. If a business can’t satisfy its customers they tend to leave. “Only about 4% of dissatisfied customers complain. 96% just go away.” (Harris Interactive, 2011). Studies show the behavior of dissatisfied customer causing serious problems for businesses. Once the customer goes away, its causing the business loss of revenue and costs for advertising and other activities to attract new customer, again the probability of a new customer buying product is very less. “Probability of selling to an existing customer: 60-70%. Probability of selling to a new one: 5-20%.” (Marketing Metrics). “It costs 6-7 times more to acquire a new customer than to retain an existing one.” (Bain & Company). Listo System is also facing problems relating to customer retention and ability to maintain its dominance as a market leader.

Power Shift from Seller to...

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