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Market Case

Essay by   •  January 8, 2012  •  Essay  •  668 Words (3 Pages)  •  1,357 Views

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1. Market segment served(Product/Service wise) :The EPC ( engineering,Procurement,Construction) firm Primarily serves a niche market segment among the industrial engineering segment with primary thrust area being pipeline construction ,Tanking & Terminal building for oil & Gas majors.

2. Markets served (Area wise): The firm has a physical presence in a number of areas like India, UK, Malaysia, Khazakistan, Kenya, and Singapore etc.

3. Low cost advantage: The Company has huge backward integration from logistics to sourcing. It sources raw materials required at competitive prices from around the globe and has been successfully able to pass these advantage on to its customers by bidding at low prices for projects. The company recently has won a number of tenders and has an impressive backlog of orders from its customers.

PUNL offers a low cost focus strategy as the generic strategy which it follows to achieve a higher rate of profit over its rivals.

Low cost focus-How PUNL does it

1. The company has a highly skilled & talented product development and engineering team comprising of architects, Civil engineers etc. who can optimally use resources available to deliver a project without much of wastage thus keeping costs low.

2.The company's implementation of ERP and CRM modules and extensive use of oracle for project planning, implementation & logistics and inventory management helps it forecast amount and type of resources required at each site well in advance thus saving on last minute costs.

3. The company has so far successfully completed over 200 projects across the world for various customers of varying complexities. Giving it the required brand image power and reputation for quality and innovation at low cost.

Low cost focus -Advantages

1. The firm using this generic strategy enjoys a high degree of customer loyalty. As PUNL operates in a market where customers are big but few so this strategy brings them a high number of repeat orders, Positions them as the best for winning competitive bids and much of after sales and servicing of these structures are also awarded to them only .PUNL believes that the needs of the niche group like this can be better serviced by focusing entirely on it. This strategy seems to be working for them as the company has had a significant growth both in terms of bottom-line as well as amount of backlog orders it has in the recent years.

2.This customer loyalty also works up to an added advantage for the company as it discourages others to enter this market as they know that getting orders would be hard for a new entrant thus raising the entry barrier and protecting these existing players from competition.




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