Water Supply Case $-$ Four P$$s

A long time ago there was a city in a desert named Carpathia. The city was a prosperous

city, but they ran into a problem when the city well went dry. There was another well one

kilometre away and the city sent out contract offers to see if there was a private company

that was willing to supply water to the city. Two contacts were rewarded.

Obtuse began having his $4$ sons and himself transfer buckets of water back and forth

between the well each day. Obtuse charged $$20$ per bucket of water and transferred it into

a big holding tank in the city centre. People who wanted the water came and purchased

the water from Obtuse and carried it home.

Vivid began spend a great deal of his money working with a piping company. He began

laying pipes down between the well and the town centre. $6$ months into the project he was

only half way done. This made Obtuse very happy as he was the only supplier of water

and the townspeople had no choice but to buy water from him. He raised his price to $$30$

per bucket despite people protesting. Obtuse became a wealthy man and paid his sons a

great deal of money.

Finally after almost a year Vivid was able to begin offering water. The water was piped

to the square. Because he didn$$t have to pay anyone to carry the water he was able to

charge much less money $($$$15$ per bucket$)$ and people began using his service.

Obtuse became quite upset about the fact that he was no longer making money. He tried

to lower his prices to match the $$15$ per bucket, but he found it hard to hire workers that

were willing to carry the water and still make a profit. On top of that people didn$$t like

his water as much, as it was often full of bugs, warm, and dirty.

BUSM $1115$

$1)$ Perform an external analysis of both Obtuse and Vivid$$s businesses.

Strengths Opportunities $($PESTCD$)$

Weaknesses Threats

$2)$ What are the next steps that could be taken if you were Obtuse or Vivid to

expand customer value in terms of:

Price

Place

Product

Promotion