Falcon International Limited is a well-known company for electrical and electronic products. It is the market leader for various electrical products and enjoys the second position for electronic products. The company have realized that the 80 million strong middle-class market of India now wants world-class products and after-sales services. The customers are now ready to pay higher price for better product. On the other side, the lower middle-class customers have become very price-sensitive, with decreasing real income and increasing inflation.
So far, this company has been selling ‘same quality products’ to all income groups of customers. But now it has realized that ‘product differentiation’ if required, and ‘value for money’ on one side and ‘reasonable value for reasonable money’ on the other side are going to be the future ‘product strategies’ of the company.
Product differentiation is to be effected very carefully, without disturbing ‘customer sentiments’. This requires suitable change in ‘employee skills’. If employees are ready to change their style of operations, the required change in ‘product design’ or ‘product quality’ can be achieved and the customers could be completely satisfied.
Employees are to be exposed to ‘real market realities’ through live product demonstrations and effective workshops. Careful study of ‘customers ideas on product value’ should be carried out. New designs, new contents, new utilities require new technology and new ideas. Ultimately, all this requires flexibility in productivity. Change in operations or style should not have a negative effect on productivity. If changed design or quality of product demands improvement in productivity, it should be achieved by the employees. The company should properly reward such an improvement.
Falcon has appointed a committee to find out ways and means for redefining productivity, based on redefined ‘product value’.
Q.
1) Discuss the significance of timely change in ‘product value’.
2) Discuss the significance of timely ‘changes in productivity’ to suit the ‘change in product value’.
3) How would you bring in such a change in the productivity?
4 Comments