Customer Centricity

Centricity is about seeking to determine the needs of customers and taking action to satisfy them. It is radically different choice in comparison to the ways many companies traditionally operate. In addition, the concept of customer centricity understands the demand and predicting the shift of demand. Therefore, in general, knowing customer’s behaviour and understanding their values in terms of purchasing behaviour and future potential is the focus for customer centric organizations. This concept is value based approach and is supported by the 4 C’s, i. e.

Customer wants and needs, Cost to customer, Convenience of purchase and Communication between company and customers. Herrington (2008) states that, all who interface with customer must change their skills and behaviours in order to support a customer centric focus. Often this is the area where implementation becomes difficult, if not impossible, under pressure. Furthermore, due to the presence of dynamic environment, organizations are bound to experience regular pressures to develop on the operational side of the business and adherence to regulatory requirements while meeting rising customer service expectations.

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Meeting customer service expectations could demand for change in organizations concept of operation. Therefore, while determining change, an organization should begin with a clear understanding of the environment it exists and functions. Some major reasons causing escalating pressures for an organization to be customer focused can be identified as follows: Firstly, Vicious Competition among organizations builds pressures to cut down on prices while, increasing profits and drive efficiencies.

Due to this, organizations feels being under pressure to emphasize on long term plans. In contrast, if the organization emphasizes on future plans on higher degree in comparison to focusing on customer satisfaction could ultimately result on brand erosion, customer churn and unsustainable business models. Therefore, in order to maintain the customer loyalty, organizations should focus on long term customer relationship rather than long term plans.

Also, Maintaining Relationships with the customer and improving over time is another reasons for an organization to consider being under pressure. Findings on this issue states that, generally relationship between the organization and customer degrade over time. Customers seek for higher level of relationship between them and the company, therefore, organizations should emphasize on improving the relationship between them and the customers creating positive impression of the service quality and other facts which impact on relationship between these two.

On the other hand, customers related to industries of supermarket, mobile phone companies, electricity providers and specially car insurance where the benefits of no claims bonuses believes that it creates a strong feel factor good over time. Such reflection of customer commitment through customer understanding by selected organization has proven to be fruitful for lasting customer loyalty. For instance, “Maintaining customer values throughout even during times of business turbulence (British Airways. ” Equally, Increasing Business Values tends to be another difficulty faced by a business through its life time.

In order to increase its values an organization should at first treat customer satisfaction as a science upcoming with unique approach into customer behaviour which, itself is more than a complexity for any business houses. Understanding customers from this approach can be achievable through proper analysis of multiple customer data sources. Furthermore, for this to be commercially practical, customer insight must be supported by a suitable degree of responsiveness.

Being commercially practical would mean conversion of customer understanding into relevant actions such as product development, organizational change and maintaining communications on current issues with the customers ultimately resulting in increasing business value. Illustration such as maintaining values possessing a strong customer ethos and adopting relevant marketing techniques. What’s more is, Customer Loyalty and Retention, gained by delivering a customer friendly proposition, building emotional loyalty and delivering innovative services.

Similarly, understanding the importance of regular customer interaction and how it can lead to genuine customer engagement by continuous delivery of propositions, which are relevant to all the customers of an organization, is to be considered by the business house in order to maintain the level of customer loyalty and retention. Moreover, interconnection between satisfaction and loyalty helps to convert satisfied customer into loyal customer. In contrast, organization shouldn’t forget the presence of other factors beside satisfaction that have a certain degree of impact on customer loyalty.

Considering some complex factors that are accountable are image of brand or supplier from customers view occurring both in conscious and sub-conscious level. Regardless of significant marketing budgets and resources available, considerable numbers of companies lack behind to fulfil business tenets resulting in failing to insight the role of customer trust and loyalty for business success. Above mentioned issues are among some of many issues organizations should focus on to be customer focused. Mitsubishi Electric and its focus on customer focus. Founded in 1921, “Mitsubishi Electric” has been a name in history of the development of modern Japan.

Initially, the company entered the consumer sector by manufacturing electric fan. Then after, progresses of Mitsubishi over decades have been significant. Within two decades the company had already begun to extend its reach overseas whilst establishing itself as pioneer in the development of computers, advanced air conditioning systems, automobile manufacture, automobile electrics, satellites powered by photovoltaic technology and nuclear power generation. Today Mitsubishi is a global giant with operations in 35 countries and consolidated net sale of more than US$32 billion (as per Annual Report 2007).

After understanding the fragmentation in the companies approach resulting in absence of customer focus in the world of competition. Mitsubishi decided to change it into “one voice and one set of ears for customer”, in order to gain customer loyalty and which was the beginning of continuing drive towards improved customer service for Mitsubishi. Mitsubishi since then has been outsourcing its part of most basic calls 24 hours a day and 365 days a year due to which customer satisfaction rate rose by 8 percent.

The call centre project team consisted from its sales, marketing, finance and IT departments. Mitsubishi Vs Maintaining Relationship: Since 1921, Mitsubishi Electric’s has proven to be successful in maintaining relationship with its stakeholders. Regular collection of feedback from customer through customer satisfaction surveys in reference to traits of each business operation and incorporating their voices into improving product development, strategies or services are some evidence to be looked at in regards to maintaining relationship.

The design philosophy of Mitsubishi aims to generate an integrated image for Mitsubishi products, so that the brand can be recognized at a glance. Improvement and development of products on the basis of research has helped Mitsubishi construct a value of its own. In addition, the seven guiding principles of Mitsubishi (i. e. Trust, Quality, Technology, Citizenship, Ethics Environment, and Growth) have also helped the company on increasing its business values.

The principle of customer loyalty and retention starts from customer satisfaction. The service management literature argues that customer satisfaction is the result of a customer’s perception of the value received in a transaction or relationship – where value equals perceived service quality relative to price and customer acquisition costs.

However, Bansal and Gupta (2001) states “Building customer loyalty is not a choice any longer with businesses; it’s the only way of building sustainable competitive advantage”. Likewise, Mitsubishi Electric’s has kept customer satisfaction as a priority management principle since 1921. Understanding the values of customer satisfaction, Mitsubishi Electric understands on customer’s selection, purchase and the equal contribution from its development, manufacturing, sales and service departments.

According to the company customer satisfaction, loyalty increases through assurance, contentment and emotion. Mitsubishi Electric believes in exceeding customer expectations and providing an emotional benefit through the product. Thus, maintaining the customer loyalty and retention.

Climate change and its prospective consequences on business and economy have the power to affect business houses having direct impact on climate change. Likewise, it also has potential to change the business environment that exists today and in coming future.

While the degree and rate of change in climate is immeasurable, the consequences of the climate change are inevitable as well. The world today faces the most terrifying climate issue i. e. “Global Warming”. This critical situation exists’ because of the rapid combustion of fossil fuels resulting emission of green house gases. Critical issues arising from climate change resulting in effect on human kind, environment and economy are directly associated with the business houses and companies with maximum use of fossil fuels. Today firms have started to realize climate change as a barrier to profit.

Being able to understand the impact of climate change in business and economy has obliged the business houses and companies to identify risks related to climate change and act more responsible towards the arising issues and think for the welfare of customers and the environment they exist in. By understanding the ecosystem and its pros and cons, Mitsubishi Electric has established Biodiversity Strategy to lead the entire group in contributing to the preservation awareness.

For instance, the “Satoyama” woodland preservation project and Mitsubishi Electric outdoor classroom. Similarly, M. E. as planned to bolster activities that would minimize the contemporary environmental impact through green procurement and large-scale, high-purity plastic recycling. Starting 2012, organization related to environmental management will review its own activities and identify new issues to tackle with its surrounding ecosystems. Hence, Mitsubishi Electric’s had conducted an environment study for offices and works located in the Chubu region to classify the living organisms inhabiting the grounds of their factories and surrounding areas.

Mitsubishi Electric India to deliver the country with advanced and environmentally compatible products and technologies on a mass scale. Thus, the organization has chosen to gain profit through environmental responsibility while contributing to the nation as well. Moreover, M. E. has introduced environmental vision 2021 and, to support this, the organization is advancing initiatives to achieve a low-carbon recycled based society in order to contribute to the development of sustainable society. The vision shows what the company aims to be by the 100th anniversary of Mitsubishi Electric’s founding year 2021.

Till then, the company will focus to strengthen its corporate constitution as well as pursue social contribution. Recognizing the catastrophic scenes of tomorrow that could result from today’s ignorance on major issues can be acknowledged as effort to adapt in today’s scenario keeping the past experience in reference while, predicting future. Act of contributing to the society as a compensation for the emission of green house gases should be considered thoughtful. Nonetheless, compensating to the society through such behaviour doesn’t release the fact of degrading environment and its negative impacts.

Therefore, company should more focus on boycotting the use of fossil fuels or combustion of fossil fuels to minimal rate and adapt to strengthening its corporate constitution which refers to disciplining themselves to consume less energy and fewer resources during manufacturing whereas, increasing the production efficiency to the optimum level.

Mitsubishi Electrics and its stakeholders: Stakeholders can be identified as any group or individual who can influence and is influenced as well by an organization.

Generally, Suppliers, Stockholders, Employees, Political and Pressure Groups, Society and Government are termed as stakeholders of an organization. Organizations are obliged beyond the requirement of law and economics to pursue long- term goals that are of assistance to an organization. In addition, organizations should continue its commitment to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large.

Furthermore, organizations responsibility towards its stakeholders would be to respond positively to emerging societal priorities and act ahead of regulatory confrontation. According to the CSR Policy 2010, the company has determined its main stakeholders as; Government, Human Rights Pressure Groups, Environmental Organizations, Employee, Business Partners and Society. In relation to maintaining the extent of influence with government, the company has decided to comply with law in any circumstances.

The company also has declared to conduct themselves in compliance with applicable law as well as considering changes in social ethics and practices. Establishment of goals and aims, which would be achieved through the violation of applicable laws, will not be considerable for Mitsubishi Electric.

Likewise, Mitsubishi Electric’s has promised to always operate itself with the respect for human rights. Statement has already been made by the company for not tolerating discrimination based on any grounds, child labour and forced labour. Another influence to the company is the environmental factors. In regards to he growing issues of environmental aspect the company has introduced Environmental Vision 2021 to fight against it. This practice focuses on reducing total CO2 emissions through energy saving activities in offices and plants, reducing CO2 emissions during product use through use of control technologies by offering basic energy saving performance and promoting 3 R’s; Reduce, Reuse, Recycle for optimum use of resources. Mitsubishi Electric’s recognizes its responsibilities for upholding corporate ethics and compliance and engaging in social contribution activities through technologies, products and services.

Technology is counted amongst one of the contribution the company has made over the years towards the society. Distinctive development made by the company for the benefit of the society are ‘Japan Aerospace Exploration Agency (JAX A)’S H-11 Transfer Vehicle (HTV)’, inverter that uses SiC(Silicon Carbide) a material with greater promise for next generation power semi-conductors and has a capability to reduction of power loss by 90 percent, the worlds highest. Through this technology CO2 emissions from electrical equipment can be reduced in high volume.

For coming future, the company has decided to continue their effort on building a relationship of trust with stakeholders and do its part to realize a sustainable society. The corporate statement “Change For Better” would be the spirit to pursue continuous improvement. In addition, influence through business partners cannot be neglected in the case of Mitsubishi Electric. The company has been purchasing wide range of materials from both within Japan and international markets by maintaining policies of easy access, mutual prosperity and ecological soundness.

Easy Access: In order to provide customers with the products and services of highest quality, there has been constant searching for new suppliers regardless their size. Product price, product quality and delivery performance are three major factors considered by the company in order to embark a new business relationship. Mutual Prosperity: Mitsubishi Electric’s believes in long-term relationship built upon mutual respect and trust. Ecological Soundness: Materials and manufacturing process used by the supplier are closely observed and recorded by Mitsubishi Electric’s.

Sticking to the Environmental Vision 2021, the company only purchases ecological sound products. Furthermore, the company focuses and tries to build relationship with potential partners who are willing to join Mitsubishi Electric’s in their drive toward global prosperity. Mitsubishi Electric’s has been considering better changes for its employees. The company complies with the Labour Standards Law and the Equal Employment Opportunity Law for a proper workforce diversity and equal opportunity regardless the nationality, sex, age.

In addition, recent graduates and mid-careers professionals are hired in order to address to the problem of mass retirement of baby boomers in Japan and Group companies. Another interesting fact of Mitsubishi Electric’s is, it’s working to promote the employment of people with disabilities and to create barrier-free workplaces within its business sites. In fiscal 2011, employment ratio of disabled people reached the legally required ration of 1. 80 percent.

Strategic Decision: Decisions made for the long-term and which are considered where the future planning is concerned in accordance with organizational vision and mission for the organizational growth is termed as strategic decision. It’s supported by operational decision. As per the information above, it can be clearly understood that, Mitsubishi Electric has been working to maintain corporate social responsibility. Strategic decisions made in reference to stakeholder’s interest can be found being practiced within the company

Likewise, recent strategic decisions made by the companies are as follows:

  • Mitsubishi Electric established ‘Environmental Vision 2021’ in order to make lasting social contributions as a leading green company. Therefore, the company will consider strengthening its corporate constitution where the company disciplines itself to use less energy and fewer resources during manufacturing and increasing production to the best possible. Illustration to this decision would be the form of Mitsubishi Electric India, which would focus on mass production of environmentally compatible products and technologies contributing to the nation and lasting value of India while generating profits from environmental responsibilities.
  • Mitsubishi Electric is one of the world’s largest manufacturers and providers of solar power technology. The eco-friendly photovoltaic systems are being used throughout the world to bring clean, reliable energy. Engaging itself into social contribution activities, Mitsubishi Electric has initiated to build a sustainable society through continuous introduction of new technologies. For instance, Mitsubishi Electric and Mitsubishi Motors launched a Solar-powered Vehicle Charging Station on July 7 2011. 6, 175W photovoltaic modules from Mitsubishi Electric are installed in the charging station. Electric vehicles such as the Mitsubishi i, which is due to arrive in November of this year will be supported by the charging station.


  1. Pdf formats: ‘Changes for the Better’, Assessed on July 20, 2011, available at: http://www. mitsubishielectric. com/company/ir/library/annual_report/df/ar2001. pdf ‘CSR-Policy. pdf (application/ pdf object)’
  2. Assessed on July 27, 2011, available at: http://www. mitsubishielectric. om/company/csr/back-issues/pdf/2010/csr-policy. pdf
  3. Dunnhumby (n. d); “Customer Centricity: Discovering what consumers really think of customer service- A report into customer attitudes”, Dunnhumby. Assessed on July 01, 2011.
  4. G. Thomas Herrington (n. d), ‘A Customer Centric Focus- Why It Works! ’ THE PAR GROUP, assessed on July 03, 2011, available at: http://www. theparagroup. com/documents/CustomerCentricFINAL. 29. pdf ‘
  5. Mitsubishi Motor Sales: Implementing Customer Relationship Management Systems’. Assessed on July 26, 2011, available at: http://highered. cgraw-hill. com/sites/d`/free/007293588x/255639/8rwc`. pdf
  6. ‘The Importance of Customer Satisfaction in relation to Customer Loyalty & Retention’. Assessed on July 26, 2011, available at: http://www. ucti. edu. my/cops/issued1/up-06-06-paper. pdf

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Customer Centricity. (2019, May 01). Retrieved from