Retaining competitive advantage in commodities

Abstract

Subject area

Premium customer service in the commodities market can be made a competitive advantage. The case deals with BPCL, a public limited Government organization that is successful through its strategic orientation while serving its customers.

Study level/applicability

This case is suitable for students who are enrolled in a Masters or an Executive Programme in Management. For a Masters programme in Management, the case can be introduced in the marketing course in sessions related to Customer Relationship Management, Marketing Strategy and Marketing in a Government organization. The case will also fit well with the audience of the Executive Programme in sessions on Marketing Management. The assignment questions provided below are designed from the perspective of teaching this case to a business student audience.

Case overview

The case study shows how a public sector company has taken steps to retain customers as well as increase its customer base through premium servicing. In all the fuel filling stations in India, the price is the same and is totally controlled by the Government. However, to survive in this market, different players adopted strategies to lure more customers and be profitable and productive in their operations. BPCL adopted a company owned company operated model, where they created a niche for themselves through premium service provided to retail customers. The case study deals with details of planning, recruitment and training and job rotation of staff by BPCL and shows how the same has led to increased commitment and motivation among employees. While operating in 24 × 7, 365 days mode, BPCL has been able to address customer complaints and feedback which has led to less waiting time for retail customers. There has been an increase in the number of customers and a high retention rate of existing customers.

Expected learning outcomes

To understand how the customer is central to an organization’s growth strategy. To appreciate the management concerns in the light of deregulation in an earlier monopoly market. To comprehend the challenges associated with maintaining competitive advantage over a long run. To appreciate the importance of employees in organizations. To understand the role of technology in achieving business goals of an organization.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 9: Operations and Logistics.

Citation

Mohapatra, S. and Patra, D. (2017), "Retaining competitive advantage in commodities", , Vol. 7 No. 4. https://doi.org/10.1108/EEMCS-06-2016-0111