Selling it - Essay Example

Topic: Compensation Product Aircom smart phones are unique communication gadgets manufactured by the Aircom Company. They have special features convenient for storing information as well as fast internet specs that enable a person to access various websites using the android technology system. The phone has featured among the most competitive communication gadget globally. This is because of its outrageous specs and the company’s compensation strategy. Compensation and nature of product The advancement of technology has led to a rise in competition among various communication gadgets manufacturing companies.

However, this has also led to the emerging of mimic companies whose strategies are to use the brand of well established companies in order to market their own products. In this case, Aircom Company has been forced to device unique strategies in order to maintain the quality of its products, brand name as well as instill as sense of quality assurance to its customers. Quality assurance is an important aspect in business as it fosters competition and the production of quality products (Donnolo 2013).

Aircom Company has majored in compensation as its strategic approach to quality assurance. Aircom smart phone is sold all over the world and goes in a complete package which includes all phone essentials and a three year warranty for the customer. This decision is affiliated with the nature of the company’s products. Electronic gadgets are prone to malfunctions as a result of software or hardware incompatibilities. Due to this factor, the company took the initiative of providing compensatory benefits to its customers by providing them with a long term warranty.

This aspect has promoted the recognition of the brand in many countries around the world thus enhancing the stability of the product in the world market. Compensation strategy and influence in competition Competition is important as it promotes the manufacturing of long-lasting products in the case of mobile and landline phone production in the world market. Aircom Company has designed strategies that ensure its sales employees are compensated in their sales of the company’s products. This is by constructing a payment system that ensures the sales employees do not undergo losses in their effort of distributing the products to retailers and direct customers.

A sales employee is paid a gross salary together with commission incentives. This is to cater for the dedicative economic system posed by the U.S government which involves high taxation of the civil society in order to foster development of the states. The commission incentives are based on the number of products sold as the sales employee is scheduled to receive a commission of 10% of the total price of all the products sold. Overtime working is charged per hour which is also stipulated in the U.

S labour standard law. This approach has promoted the competitive strength of the company as employees work hard to ensure most of the manufactured products are sold so as to maximize their ultimate income. Most communication gadget companies have not implemented this strategy thus making it essential in promoting the competitive strength of Aircom Company. The company has also managed to acquire many interested sales applicants. This is because of its compensation plan and benefits. Newly employees are supplied with an email that stipulates their benefits and initial compensations.

References Donnolo M. (2013). What Your CEO Needs to Know About Sales Compensation: New York. AMACOM Div American Mgmt Assn