Question

Pick a publicly traded company. Describe its competitive advantage using the resource-based model of above average returns.

Answer 1

Hindustan petroleum Corporatiion limited (HPCL) is the oil and Natural gas Company with revenue of US $33 billion in 2015.It is the second largest OIL Refining and LPG marketing company.. It is categorised into Two segments Industrial MArkets and Domestic Markets . The domestic market constitutes 90% of total market share. The middle class segment with its growth rate, was a major target for LPG cos.

In !993, the government has opened up the market For private cos. therefore increase the competition for the HPCL. They also reduced the subsidies on LPG, aslow price was the differentiating Factor for Its Product in Domestic MArket.

Therefore Competitive and ever changing MArket environment , felt HPCL the only way it can differentiate its product by foccussing on Providing HIgh Customer Service.

• The Company started foccused on Three aspects that is Safety , Quality and Convenience.
• The The quality Aspect Was covered by weight Campaign Initiative.In which the 15000 delivery boys were provided with the weighing scales, so that customers could cross check the Weight of cylinders at their doorstep.
• The Safety Aspect is carried by the Traditional insurance policy andin its place had taken the umbrella insurance policy covering all customers and the third parties.
• The HPCL also aimed to increase the loyalty of its customers towards the company. For which co. introduced a unique Loyalty Program(ULP) . In ULP ,a HP customer can call the HP line "1716" and enroll as a member of HP home perks.
• As a memeber the customer can buy a range of products from HP Home bazaar at huge Discounts of 40-50%.They get the loyalty points which they can redeem against purchase.
• The customers also offered incentives such as Participating in contest and win attractive prizes.
• In Convenience aspect , the co. offering delivery time within 24 hours, the new connection would be extended within 24 hours , the booking point served as a single point for various services such as enquiry, new booking and emergency services.
• The co. focussed on the rural market as well by installing two skid filling plants and introduce 5 kg cylinders in these markets.
• they launched the HP gas rasoi Ghar cheme in the rural areas to make Fuel affordable to the poor societywhich improve the qulaaity of life .
• It introduced a community Kitchen concept wherin consumers paid on the basis of time taken by them foor cooking. Thus, Villagers not have to pay the one time deposit and no investment for buying gas stoves.