BELCO enjoys 70% of the market share for the last 6-7 years. It has given the best product-range to its customers. The Heavy Commercial Vehicles (HCV) of BELCO is of world-class quality. Recently, it has started enjoying good market for its LCVs also, especially for the Model No. 407.
With the changes in the automobile industry and customers expectations, the company management realized in time that ‘Value Analysis’ at both macro and micro levels, is required for all its operations and products. Discussion and deliberations were conducted on ‘Value Expected’, ‘Value Perceived’, ‘Value Offered’, ‘Value Absorbed’ and ‘Value Adopted’.
Of late, it introduced two passenger vehicles viz, Sierra and Tata Estate, which got reasonably good response from the customers. It has perhaps the case of right time value analysis carried out by the company, which enabled it to respond the ‘market need’ correctly.
But with the growing international competition and the mark of ISO – 9000 becoming the new order of business, the company is now forced to use ‘Value Analysis’ at micro level. The company will have to address the export-quality expectations, along with the conventional demand of the domestic market.
‘Value Analysis Exercise’ will have to be carried out for all direct and indirect inputs going into the final product. Product design, product pricing, product promotion and product delivery has to be assessed with new pragmatic value parameters.
Question:-
Discuss various types of “Values” and apply them to BELCO’s present requirement. If possible, quantify them in currency values.
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