In December 2014, the chairman of Agarwal Packers and Movers Limited (APML) prepared for a meeting with his senior management team. APML was a family-managed business and also the biggest branded player in the house that is fragmented and mostly unorganized -movers section of the Indian logistics industry. The company was taking great advantage of the growth of the Indian market, government infrastructure spending, and goods and services tax changes that will bring changes that were beneficial to the sector.
While the company had reached revenues of US$62.6 million in 2013/14 and had been lauded for its security practices and accomplishments, the sector had low barriers to entry. APML was confronted with numerous little and several huge, moving firms that were struggling for the organization. Moreover, many small firms fraudulently co-opted the name to steal customers of the company. APML's chief financial officer had put forth a proposition to increase prices for inter city relocations. The chairman needed to think about the correct price strategy to use, because any price increase could cost the business customers. Tulsi Jayakumar is associate with SP Jain Institute of Management & Research.
PUBLICATION DATE: January 28, 2016 PRODUCT #: W16017-HCB-ENG
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