Customer Value Over price in the Battle for More Market share -a case study of Alfa Laval India Limited

Abstract

To optimize performance and create competitive advantage, which ultimately leads to greater market share, firm knowledge and understanding of where customer value resides is of upmost importance. Theory indicates that price is a significant factor affecting purchasing decisions but is considered to be of lesser importance for long-term commitments between firms where other factors of customer value play a greater role. This knowledge of customer value can be utilized in order to draft persuasive value propositions to retain and satisfy existing customers, set appropriate value-based price levels, and acquire new customers by developing new offerings that attract buyers. The objective of the study is to research methods by which an MNC in an emerging market can capture more of the expanding domestic Indian food processing technology market share without competing on price. A case study approach involving field research in the dynamically emerging market of India is credited for confirming the authors‟ suspicions that price, although very important, is secondary to alternative factors of value when making a purchasing decision. Through the investigation of employees and customers of the case company Alfa Laval India Limited., as well as industry consultants, the authors have managed to isolate factors upon which an MNC in an emerging market can leverage its values and enhance its operations. Ultimately, this study allows for the authors to provide recommendations on how to increase market share in an emerging market by means other than competing on price, such as continuous innovation, providing total solutions, effective market communication, organizing the organization for valuable after-sales service commitment as well as other factors of value.