What is the next thing they target or introduce - Essay Example

Case Study al Affiliation Saint John Transit Company has been experiencing challenges due to the decline in its business in the recent months. This has been attributed by the small customer base recorded. Other problems recorded include the disparity in the population’s demographics and the problem of reaching out the customers who end up using alternative forms of transport. Having a massive group of loyal customers is always one of the keys to success in a business. This small customer base has therefore affected its operations and lacks the capital to invest widely to reach out to more customers.

To address the problem, and in targeting a larger customer base, the company has embarked on cost cutting as a way of raising money to be used in investment and reaching out to more customers. According to Peters (2014), this can be used to cut costs and improve business. The company mostly targets students as they do not have cars. This puts them at a good position to be potential customers for the company. However, the company has to ensure that it reaches out to the customers otherwise it won’t be able to reap from the customers.

The next big thing for the company is cutting continual budget in an effort to remain afloat and also continue to cut routes and schedules for the administration. This is being done to ensure that the company remains afloat and operating on its popular routes. The company is aiming at increasing its returns during the peak season as with little money coming from the government, they need to improve their strategies. They were evaluating an idea of using smaller buses though the idea is not totally feasible at the moment.

It is also planning to lease out space to renters to ensure that it gets more income. ReferencePeters, J. (2014). A Better Way to Cut Costs. Strategy and Business. Available at.