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Table of Contents

1.0 Competitive Service Strategy of Domino’s Pizza Bangladesh: .......................................................... 2


2.0 Service encounter of Domino's Pizza Bangladesh: ........................................................................... 5
2.1 What is service encounter or moment of truth? .......................................................................... 5
2.2 Service encounter of Domino's Pizza Bangladesh: ....................................................................... 5
3.0 Some service related terms and condition of Domino's Pizza Bangladesh: ..................................... 6
4.0 Service encounter characteristics of Domino's Pizza Bangladesh: ................................................... 7
5.0 Elements of a service encounter of Domino's Pizza Bangladesh: ..................................................... 7
6.0 Types of Service Encounters of Domino's Pizza Bangladesh: ........................................................... 8
7.0 Success factors of Domino's Pizza Bangladesh in service encounter: .............................................. 9
8.0 Store Layout in Domino’s Pizza Bangladesh: .................................................................................... 9
9.0 Characteristics of Product Layout: .................................................................................................. 11
10.0 Product Layout Design in Domino’s Pizza Bangladesh: ................................................................ 11
10.1 Actual scenario in terms of serving customers in Domino’s: .................................................... 11
10.2 Hypothetical Example of Product Layout in Domino’s: ............................................................ 12
11.0 Quality Function Deployment: ...................................................................................................... 14
12.0 Identify what the customer wants: ............................................................................................... 15
13.0 Operational requirements to satisfy the customer’s want:.......................................................... 15
14.0 Identifying the relation between Operational requirements and customer wants: .................... 16
15.0 Perceptual mapping: ..................................................................................................................... 17
16.0 Service Blueprint: .......................................................................................................................... 19

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1.0 Competitive Service Strategy of Domino’s Pizza Bangladesh:
Value is created for a customer when a service satisfies a customer’s needs or provides some
benefit to the customer. The higher the value a customer sees in a service, the higher the price
they are willing to pay. The purpose of service strategy is must be to create value for its
customer. Strategic service vision consists of four basic and three integrated elements. The
strategic service vision of Domino’s Pizza Bangladesh is discussed below:

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Basic and Integrated Elements of the Strategic Service
Vision of Domino’s Pizza Bangladesh
Target Strategy Service
Service Value Cost Operating
market Positioning System Delivery
Concept Leveraging Strategy
Segment Integration System
Geographic Innovating Ensuring They Treat Self-service Young and Serve its
new flavors, fastest customer as they system enthusiastic customers on
Region
crusts and delivery would like to be team time by
Hungry Hotline
City toppings treated implementing the
Delivering fun, Facility Home delivery
"30 MINUTES OR
Demographi renowned happiness and Produce the best specialist
Keep in mind FREE" service
c age quality convenience for less Measure,
the health and serve its commitment
manage and
family maintaining “Domino’s hygiene. customers on
share what's Hungry hotline
income local taste pizza delivery time
important serve its facility
buds app” comes
customers on Bonus scheme
with an easy- Think big and pizzas are
time by incorporating
to-use grow delivered by way
implementing profit
interface of scooters at
Set the bar high, the "30
Every order is customer’s door
train, never stop MINUTES OR
hand-made step
learning FREE" service
commitment Interactive discount coupon
marketing
Constantly web coupon
strives to Promises their
develop customers safe
products and friendly
services free of
Believes
cost
strongly in the
strategy of
'Think Local
and Act
Regional'.

Figure: Strategic Service Vision


 Basic Element

 Integrated Element
Source: James L. Heskett. Boston. MA, 1986
Mission & Vision: Domino’s vision is “Exceptional people on a mission to be the best pizza delivery
company in the world “and mission is “Domino’s Pizza is the Pizza specialist who consistently delights
the customer with great taste and choices in pizza with friendly, courteous team members providing
prompt, safe delivery service”.

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SEGMENTATION • Geographic • Region – dominos outlets in different countries is a way of
segmenting their market • according to region and finding out potential markets. • City – they also
segment the cities as class i, class ii, metros, small towns. • Demographic • age – under 13years, 13 to
21 years21 to 35 years, 35 to 50 years, 50+ years. • family income – lower middle class, middle class,
upper middle class, high class.

TARGETING: Dominos pizzas have target the families who like to go out for dinner once in a week.
They also target teenagers of school. Spending habits of college freshmen also indicates a high
percentage of money being spent on non-essential items. Domino’s pizza has made delivery services
for those customers who like to have pizzas in their home with their families or friends.

Positioning strategy: The marketing and advertising strategies have placed Dominos at the desirable
benefit level very successfully. The desirable benefit which they offer is that they can deliver a pizza
that too fresh one within 30 minutes. This should not be considered as product attributes rather a service
which is accompanying the product. Thus the brand positioning of Domino’s through its versatile ads
guarantees its association with an image of high quality fresh pizza which is delivered on time. This
way the customers get to enjoy a delicious pizza within 30 minutes and that too just sitting at home.
Thus Domino’s has created a niche in pizza market through brand positioning very successfully.

Characteristics of Services: •Intangibility: It is impossible for the service users to taste, feel,
see, smell or possess a service before they buy it. •Heterogeneity: People based services are
susceptible to heterogeneity, or variation in quality. •Perish ability: Unused service capacity of
one time period cannot be stored for use in future time periods. •Inseparability: The production
of a service cannot be separated from its consumption by customers. Services are produced and
consumed simultaneously

Product: • The very brand name ―Domino's adds value to the products available in the store.
• The quality and the hygiene of the pizzas and the other add-ons are taken care of by the
company or the franchisees by way of training to the employees. • Domino's also takes pride
on the innovation of many new products and ideas.

Price: • General perception prevails that pizza prices are expensive and cannot be afforded by
many, but Domino's pizza prices will make you think twice about that statement. • Domino's
also provide lots of offers and deals that give your much discounted pizza prices. • First off,
customers can get Pizza mania pizzas for prices as low as Rs. 39/- which no other pizza chain
offers in the country. • The regular size Simply Veg pizzas start from Rs. 60/- onwards and
they have pizzas up to around Rs. 500/- . • Domino's caters to all price ranges so that customers
can always find a pizza price that fits their pocket.

Physical Evidence: • Logo • Simple Parking space • Good Infrastructure • Use of Modern
Technology Equipment. • Clean and Friendly Services.

Process: • Self-service system. • Hungry Hotline Facility. • Keep in mind the health and
hygiene. • Domino's Pizza India also boasts about its commitment to serve its customers on
time by implementing the "30 MINUTES OR FREE" service commitment. • Domino's
constantly strives to develop products that suit the tastes of its customers, • Domino's believes
strongly in the strategy of 'Think Local and Act Regional'.

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People: • Recruiting young, enthusiastic and dedicated employees. • Appropriately trained for
delivering the service. • Personality development and grooming sessions. • Provide them with
various facilities such as medical help, consultation, traveling facilities, perks and bonuses. •
Team members are recognized and rewarded based on ability and merit for their contributions.

Place: • Domino's Pizza stores are established in almost 50 countries and they have got more
than 8,000 stores worldwide. • The Domino's stores are centrally located and in a manner
convenient for the people to walk in and also convenient for the deliverers to do their job. •
The distribution channel followed by the company is mostly through takeaways, telephone
ordering and online ordering. • The pizzas are delivered by way of scooters at their door step.
• In order to maintain the quality of the pizzas, they are carried in a heat wave bag so that they
can deliver hot and tasty pizzas to their customers

Promotion: • Pizza Order Discount: Domino's offers its customers a number of discount and
other promotions on purchasing Domino's pizza. Dominos start providing coke/Fanta/sprite as
per their contract with Coca Cola Limited. Dominos started pizzas mania which start from Rs
39 and we get the toping according to our choice. Web coupons available at web site
www.dominos.co.in Discounting coupons are being provided with every item purchased. New
schemes at regular interval of time according to the taste of the INDIAN customer

Internal and External Marketing: • Young and enthusiastic team. • Home delivery specialist.
• Domino's vision. • • Dominos bring out the 'WOW' effect. • Domino's serve its customers on
time. Bonus scheme incorporating profit. • Every order is hand-made. • What's up Dominos
session INTERACTIVE MARKETING • Dominos promises their customers safe and friendly
services free of cost. • E home delivery. • Domino's heat wave. • Domino's Pizza strives to be
the best pizza delivery company in the world. • Delivers more than just hot pizzas.

2.0 Service encounter of Domino's Pizza Bangladesh:

2.1 What is service encounter or moment of truth?


A moment of truth is usually defined as an instance wherein the customer and the organization
come into contact with one another in a manner that gives the customer an opportunity to either
form or change an impression about the firm. Various instances could constitute a moment of
truth- such as greeting the customer, handling customer queries or complaints, promoting
special offers or giving discounts and the closing of the interaction. Smith (2003) indicates that
this encounter is when an organization and the product or service it provides, meets face to face
with the customer- the point where a potential customer becomes an actual customer. The
outcome of this often determines whether the guest will visit a particular place again or not.

2.2 Service encounter of Domino's Pizza Bangladesh:


“They serve best quality and testy pizza” a review from Shohanur Rahman about Domino’s
Pizza. Another review was “Their service delivery is the worst! Had to call them thrice to order
a pizza” by Saria Saoman. So basically, we can see that their customer- personnel interaction

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is not well planned but their quality of product is best. Service encounter depends on the
experience on the place of contact. Customer satisfaction arises when the experience is more
than the perception about the service and vice-versa. This is their basic way of providing
service.

They provide both on the premises and off the premises service as well as they adopt E-selling.

3.0 Some service related terms and condition of Domino's Pizza Bangladesh:

 Prices listed on menu are exclusive of taxes


 Prices are subject to change without prior notice.
 Delivery in limited areas only.
 For Delivery, minimum order should be at least one Pizza or an order valued at Tk.
300 BDT (inclusive of taxes).
 The final bill that comes with your order is the actual legal invoice.
 In case the delivery locality is not listed in the restaurant locator, delivery of orders
cannot be placed; However you may choose to pick up your order from the nearest
Domino's restaurant
 Your Order must have at least 1 pizza (excluding Pizza Mania) or the minimum bill
must be BDT. 300/- or more (inclusive of taxes for delivery)
 In case certain menu items are not listed in the menu page, the particular restaurant
does not carry those items in the menu
 In case of non-availability of ordered product at the mapped restaurant, the order
would not be executed.
 Domino's Pizza Bangladesh offer coupon in some cases,
 The online order once placed cannot be modified or cancelled via any digital medium

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 You can get updated on the status of the order by calling the restaurant directly or
checking the track order page in app for app orders.
 In case the order which is paid through digital payment method is cancelled due to
non-availability of the ordered product at the restaurant, the amount will be returned
by reversing the transaction by Domino's restaurant

4.0 Service encounter characteristics of Domino's Pizza Bangladesh:


The basic characteristics of their service encounter includes,

Service encounters are purposeful


Service providers are not altruistic
Prior acquaintance is not required
Service encounters are limited in scope
Task-related information exchange dominates
Client and provider roles are well defined

5.0 Elements of a service encounter of Domino's Pizza Bangladesh: Their


service encounter comprises four elements: (1) the customer, (2) the service provider, (3) the
delivery system, and (4) the physical evidence.

Customer

Elements of
Physical Service
service
evidence encounter provider

Delivery
system

Figure: Elements of a service encounter

Customer: The customer is the most important element of a service encounter. The ultimate
objective of an encounter must be the satisfaction of the customer. The service and its delivery
system must be designed to meet the customer’s needs in the most effective and efficient
manner. Consequently, a customer’s comfort, safety, and overall well-being should be a major
concern for the service organization.

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Service provider: The service provider or employee is the other crucial human element in
service encounters. As a human being, he expects courtesy from customers and fellow
employees, and would like to be appreciated by customers and management.

Delivery system: Delivery system consists of equipment, supplies, processes, programs, and
procedures, as well as the rules, regulations, and organizational culture. Domino's Pizza
Bangladesh has a nice delivery system.

Physical evidence: Physical evidence includes all the tangible aspects of a service or service
organization a customer experiences. Backstage facilities, or facilities below the line of
visibility, are not considered part of physical evidence since they are not directly experienced
by the customer.

6.0 Types of Service Encounters of Domino's Pizza Bangladesh:


Their service encounter occurs every time a customer interacts with the service organization.
There are three general types of service encounters – remote encounters, phone encounters, and
face-to-face encounters. A customer may experience any of these types of service encounters
in Domino's Pizza Bangladesh.

Remote
Encounter

Types of
service
encounte
rs
Face-to-Face Phone
Encounters Encounters

Remote Encounter: Encounter can occur without any direct human contact is called as
Remote Encounters. Domino's Pizza Bangladesh serve their service on online request to the
reasonable remote area.

Phone Encounters: In many organizations like Domino's Pizza Bangladesh, the most frequent
type of encounter between a customer and the firm occurs over the telephone is called as phone
encounter. Almost all firms (whether goods manufacturers or service businesses) rely on phone
encounters in the form of customer-service, general inquiry, or order-taking functions.

Face-to-Face Encounters: A third type of encounter is the one that occurs between an
employee and a customer in direct contact is called as Face-to-Face Encounter. This is the main
encounter in Domino's Pizza Bangladesh as most of the customer take services at their shop.

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7.0 Success factors of Domino's Pizza Bangladesh in service encounter:
Domino's Pizza Bangladesh focuses on customer satisfaction. They try to protect their brand
by compromising some value. In case of any service failure, Domino's Pizza Bangladesh
follows the chain.

Recovery Adaptability

Employee response to Employee response to


service delivery system customers’ needs and
failure request

Coping Spontaneity

Employee response to Unprompted and


problems of customers unsolicited employee
actions and attitudes

8.0 Store Layout in Domino’s Pizza Bangladesh:


The store layout design of Domino’s Pizza in Bangladesh follows the typical design of other
stores. It takes on process based store layout in which processes are designed together as the
product moves between stations and the floor plan ease the movement of products and
employees in handling peak hour demand (Gandham, Wilson, Tripathy & Shah, 2011).
The storage area of Domino’s is designed to store the ingredients for 3 days. The design
increases the chance of maximum use of space and equipment and enhances the skills and
competency level of the employees.
The store layout of Domino’s adopts the following things:
 Reception;
 Assembly Line;
 Oven;
 Packing Area;
 Office;
 Cold Storage;
 Washing area.

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The typical layout of Domino’s Pizza store is shown below in a figure:

Washing Area

Storage Cold Storage

Office Office

Assembly Line
Parking
Area
Delivery
Waiting Area

Figure 1 Store Layout of Domino’s Pizza Bangladesh


Source: (Gandham, Wilson, Tripathy & Shah, 2011)
Most of the stores of Domino’s across the world try to adopt this typical store layout design
and the store in Bangladesh are of no difference.

Product Layout:
Product layout is a special type of layout strategy or it can also be referred as layout design in
which equipment or departments are dedicated to a particular product line, duplicate equipment
is employed to avoid backtracking, and a straight-line flow of material movement is achievable.
Adopting a product layout makes sense when the batch size of a given product or part is large
relative to the number of different products or parts produced.
In service operations management, product layout is designed to serve a large number of
customers and limited services are designed one after another so they can maintain a flow in
work. For example, assembly lines are a special case of product layout design. In a general
sense, the term assembly line refers to progressive assembly linked by some material-handling
device. In fact, virtually any product that has multiple parts and is produced in large volume
uses assembly lines to some degree.

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9.0 Characteristics of Product Layout:
The usual features in product layout are described below:
 Resources are arranged sequentially based on routing of the products;
 The sequential layout allows the entire process to be laid out in a straight line;
 Usually two types of line are used in product layout which are paced and un-paced;
 Line balancing is used to increase the efficiency of product layout;

10.0 Product Layout Design in Domino’s Pizza Bangladesh:


In Domino’s Pizza Bangladesh process layout strategy is adopted in designing the store layout
but in designing its service delivery system it actually follows production layout strategy to
serve more customers in a less time.
Though the pizza store is renounced worldwide for its service delivery and product quality,
still one constraint remains in its operations. The limitation is the space between the
workstations of the store which needs to be restructured to allow more free movement of
products and people.
10.1 Actual scenario in terms of serving customers in Domino’s:
The maximum capacity of baking pizzas simultaneously is 24 which creates a blockage in case
of bulk order. Production constraints of Domino’s Pizza Bangladesh are shown below in a
figure:

Figure 1.2 Production Constraints: Domino’s Store


Source: (Gandham, Wilson, Tripathy & Shah, 2011)

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In case of excess demand on one outlet, the load should be shared with the nearest outlet. The
backup ability must be upgraded when the pressure is high on a specific outlet.

10.2 Hypothetical Example of Product Layout in Domino’s:


In this example, an alternative product layout has been discussed in which Domino’s can
change the required time in serving 13 customers and also the way in which it can increase the
number of customers served per hour.
Assuming that the store has 6 workstations in its service section and 5 employees are assigned
to staff the service stations. One employee takes both the order and collects the money. The
average service time in each workstation is given below:

Table 1.1 Domino’s Service Times


Serial Service Station Average Service Time
1 Entry of order 30 seconds
2 Dough and sauce preparation 120 seconds
3 Adding toppings 30 seconds
4 Removing pizza from oven 10 seconds
5 Placing pizza in a box and 15 seconds
serving
6 Collecting money 50 seconds

So, we assumed that 50 customers can be served in 50 seconds. In this layout, workstation 1
and 6 means the order taker and the cashier need total 80 seconds to serve a customer and rest
of the members sit idle for 20 to 30 seconds of every minute. It can be shown in following
way:

 50 customers served:

30 seconds 120 seconds 30 seconds 10 seconds 15 seconds 50 seconds

Order Dough and Toppings Pizza from Serve Cashier


entry sauce oven pizza

ws 1 ws 2 ws 3 ws 4 ws 5 ws 6
a) Current Layout with six servers serving 50 customers

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 50 customers served per hour:

30 seconds 150 seconds 25 seconds 50 seconds

Order entry Dough Toppings Pizza oven Serve Cashier


pizza

ws 1 ws 2 ws 3 ws 4
b) Alternate layout with 4 servers
c)
 100 customers served per hour:

30 sec 150 seconds 25 seconds 50 seconds ws 4

Cashier 1
Order Dough Toppings Pizza Serve
taker oven pizza
Cashier 2

ws 1 ws 2 ws 3 50 seconds ws 5
d) Alternate Layout with 6 servers

From the above hypothetical example, it can be summarized that in the first scenario 50
customers could be served within 50 seconds with 6 workstations. When the layout was
changed to 4 workstations from 6 workstations the situation remains the same. It means that 50
customers can be served by the cashier in 50 seconds. But in alternate layout 3, 100 customers
can be served with 6 workstations. As the server of cashier has been divided into 2
workstations, each cashier now can serve twice customers in 50 seconds which ultimately will
increase the efficiency of the restaurant.
So, the changes in product layout can be proved effective for the Domino’s Pizza Bangladesh
in increasing the number of more customers served.

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11.0 Quality Function Deployment:
The House of Quality or Quality Function Deployment is a useful tool to determine customer
requirements, and translating their demands into design process. QFD is a graphic technique
for defining the relationship between customer desires and products or services. A practical
example of Domino’s Pizza about how they are implementing House of Quality technique is
described below:

Figure: The House of Quality


Source: Richard J. Schonberger and Edward M. Knod. Jr

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House of Quality Steps for Domino’s Pizza is to identify what their customers’ wants,
identify how the product will satisfy the customer. Develop importance ratings using the
customer’s importance ratings and weights from the relationships in the matrix to compute the
importance ratings. Then evaluate competing products or services based on research. Then they
need to determine the desirable technical attributes to implement those attributes which will
fulfill customer’s requirements.

12.0 Identify what the customer wants:

To build a House of uality we need to deep-dive into the main features and we have to
determine the importance ratings according to customer needs. We determine the importance
ratings for our House of Quality on a scale of 1 to 5. The first main feature is good taste. Taste
is the first thing that a customer demands in any food item. The better the taste the more
customers will demand it. The second main feature is appetizing appearance. Because the pizza
should look mouthwatering, delicious, appetizing and spicy, even if the customer hasn’t yet
tasted. It is affected by shape, size, the method of baking, and ingredients too. The third
demanded feature is quick turnover and fast delivery. Everyone wants a fresh and hot pizza,
even if they’d ordered it home. Price is the fourth most important factor according to the
customers. The customer always tends to purchase food that tastes good at a low price. So,
there shouldn’t be any compromise on taste while keeping the price as low as possible to meet
the customer requirements. The fifth main feature is friendly service from trained well behaved
staffs of the restaurants.

13.0 Operational requirements to satisfy the customer’s want:


In this step of building a House of Quality, Domino’s Pizza need to reflect the customer’s
desires and demands in relation to their company’s product and services. For their House of
Quality, they have to consider those before finally approve the making and cooking of pizza.
Their product would be able to provide these features to the customer:

 Delicious and fresh variety toppings


 Good Staff training for standard and quick service
 Appropriate weight, size, shape, and thickness according price
 Optional eatables for taste and texture
 Affiliation with food delivery companies to deliver fresh and hot pizzas

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14.0 Identifying the relation between Operational requirements and
customer wants:
In this step of building our House of Quality, we have developed a relationship matrix between
our customers’ wants and operation requirements. Here in the diagram it is showing how these
requirements can be related to each other when building our House of Quality. We can see for
customer’s good taste and appetizing appearance matters the most and to fulfill their wants
delicious and fresh toppings has a strong relation and appropriate weight, size has medium
relation with this. Whereas for friendly and quick service, good staff training has a strong
relation. Beside that for affordable price is highly related with appropriate size, weight and
thickness.

In the next step we have compared the features of competing products of other companies.
Company A, “Pizza Hut” and Company B “Pizza Inn” are competitors for our products. Hence,
to build our House of Quality, we have first discussed and compared their pizzas to ours to get
a more comprehensive and detailed report about our pizza and we have tried to evaluate our
competitors’ pizza against customer wants. The last step in building a House of Quality
is determining of technical attributes and checking our performance with respect to market
products.

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15.0 Perceptual mapping:

Perceptual mapping helps the Management to see the real picture of their own and their
competitors. In above map, Services are plotted on X-axis and Pricing is plotted on Y-axis.
Expensive and high services: 1st quadrant
Expensive and moderate services: 2nd quadrant
Inexpensive and moderate services: 3rd quadrant
Inexpensive and high services: 4th quadrant
The competitors for Domino’s are Pizza Hut, KFC, Chillox and Takeout. Domino’s is
providing High Services at very high price. That is why it is plotted in 1st quadrant. Likewise,
Pizza Hut provide high services but the food products are not expensive. But in 2nd quadrant,
the services are moderate and they cost high than KFC.

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Phone Customer Call

Customer Order Store Pizza,


Good Smell

Cash Register Computer Pos

Pizza Plates, Delivary Guy,


Pizza Box

Employee Makes Pizza Employee Puts In


Pizza Order

Clean Up
Store Front

Pizza Given To
Customer

Consumer Receives
Pizza

Customer Eat
Pizza

Supplies

Clean Up
Kitchen
Bus Bin

Cleaning

Dispatch Driver Customer Pays

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Line of Visibility
16.0 Service Blueprint:
A service blueprint is a diagram that visualizes the relationships between different service
components — people, props (physical or digital evidence), and processes — that are directly
tied to touch points in a specific customer journey. A service blueprint corresponds to a specific
customer journey and the specific user goals associated to that journey.
The above graph shows the service blueprint of dominos pizza. Here are some ways that can
help to improve our service.
Ways we can improve Dominos pizza:

Only do delivery

 Only doing delivery will allow us to save time and money by not needing to
have a large storefront. It will also help save time and money on cleaning, since
we do not need to clean up if people can’t eat here.

Only do In-store services

 This will save time and money (and help the environment!) by not offering
delivery. The customer must come to the store to pick up and/or eat the pizza.

Bus your own table

 This will save us time and money on both employee services, as well as cleaning
supplies. However, some customers may not bus their own tables regardless,
and if that is the case, we will have to do so. This is probably the least likely
option.

Serve slices, not whole pizzas (cut down on cooking time, can pre-make pizza)

 Serving slices will help cut down on the time to make the pizzas since the pizzas
will be pre-made and ready to order as soon as the customer arrives. However,
this reduces the amount of options that the customer has, and limits their ability
to choose a pizza they might like.

Domino’s Pizza has gained a wide reputation across the world and its operational activities
have brought a lot of success for the company. The service delivery system, its service
encounter with the guests all has proved to be very successful. Not only this but also the product
and store layout that the company has decided upon has also given it a lot of access to reach
the customers. Domino’s Pizza has recently started its journey in Bangladesh but it can be
assumed that with the pace of time the store will gain immense success because it is providing
services to the customers with a proper strategic vision.

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