Shree BalajiAlumnicast Pvt. Ltd. (SBA) was a successful business and a pioneer in creating sustainable customer value through its closed loop supply chain, it is an Indian company that deals in recycled metal.
In 2009, its biggest customer demanded a 15 per cent price reduction on alloys and threatened to take its entire business, if SBA failed to fulfill its demand within a given time frame. This customer was therefore essential and contributed a considerable share of the revenue for SBA.
SBA retain its margins, which were already dropping, through its current company and manufacturing practices and couldn't concurrently offer a price discount. The firm needed to reconsider its strategy in order to preserve its growth trajectory, and find a better method of managing prices.
PUBLICATION DATE: April 07, 2016 PRODUCT #: W16119-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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