In December 2014, the president of Agarwal Packers and Movers Limited (APML) prepared to meet with his senior management team. APML was a family business and the largest brand player in the fragmented and largely disorganized segment of residential construction in the Indian logistics industry. The company took advantage of the growth of the Indian economy, government infrastructure spending and tax changes for goods and services that would bring positive changes to the industry. While the company had $ 62.6 million in revenue in 2013-14 and was recognized for its security practices and services, the industry had few barriers to entry. APML faced several large and numerous moving companies competing for business. Additionally, many small businesses have fraudulently stolen the business name to steal customers. The APML CFO had made a proposal to increase prices for commuting between cities. The president had to think of the correct pricing strategy, as any price increase could cost the company’s customers.
Ivey Publishing (W16017-PDF-ENG)
January 28, 2016
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