Q.

3 Comparison of Strategies Adopted by PCIL and New Entrants

 PCIL was using 2 level Distribution Channel for selling its products(PCIL—Dealers—
Sub Dealers—Customers). New Entrants GC & SIC Identified that PCIL is getting more
business from its Sub dealers, they focused more on the sub dealers of PCIL. SO they
were using 1 level Distribution Channel(GC&SIC—Dealers—Customers). Means PCIL’s
Sub Dealers Became Dealers of GC & SIC.
 PCIL was giving Margin (almost equal) to each member in distribution channel. With
this strategy it’s Sub Dealers Were getting only 4-5% Margin. But Due to 1 Level
Distribution channel New Entrants started to give more margins to single member in
distribution channel.
 PCIL was using High cost price for its product with quality. New entrants were using
low price strategy to for product for more market penetration.