Bharat Great Furniture Limited is known for a good product range with superior quality and a premium price. It has been selling standardized products for the last 30 years, with a 70% market share.
Now, the company has started facing acute competition from small and the unorganized sector. Competitors are now selling low utility and low-priced products. They are successful in reaching remote areas. They are also giving door to door service and delivery of the product.
Bharat’s furniture is known to be a ‘high profile product’ with very good finishing. Inputs used in the product are also of high quality. But the standardized high profile designs and uses of its products have limited the demand for its products.
The company knows that ‘price sensitivity of demand’ is a vital factor deciding its semi-urban and rural areas. In the urban areas, customers are expecting newer designs of products, to suit increasing dynamics and reducing size of their offices. Many companies are on the drive of ‘cost-reduction’ and therefore, would like to spend only when (and where) it is necessary.
Bharat is very much in demand for the last several years, hence it did not bother much to woo the customer. It almost enjoyed ‘total monopoly’. But now with the entry of the new competitors and especially the ‘small-size-low profile companies’ has compelled the company to think seriously about a multi-front improvement.
The company will have to re-study the changing concept of ‘product value’ or ‘product utility’ perceived (or expected) by the customers. It will also have to tap the niche market by introducing low-priced, newer products.
In this process of improvement, change and growth, the company’s employees will also have to improve and change. ‘Employee Value’ will now have to coincide with ‘product value’. Employees will have to consider customers’ expectations closely and then assist the company in carrying out a detailed exercise of ‘Value Analysis’.
Analysis of the present ‘Value System’ (i.e. business values) is also required, to introduce attitudinal and cultural changes among the employees. Business values have been fast changing and therefore the company will also have to relook at its value system and retrain or remould the employees.
Q.
1) What is ‘Value Analysis’?
2) Correlate between ‘Value Analysis’ and ‘Employee Training’.
3) Discuss the change in ‘Value System’ and relate change in ‘Employee Quality’.
9 Comments