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MOVING COMPANIES - IS IT THE WAY COMPETITION TO BE HANDLED?


  • Posted on 25-Sep-2007 00:54:39

    MOVING COMPANIES - IS IT THE WAY COMPETITION TO BE HANDLED?

    Globalization has changed the face of job market. International postings are an inevitable part of MNC's HR strategy. Considering the growing global demand for International moving, the business of International Movers keep changing trends. As the business increase or demand increase for international movers new moving companies come up everyday in every country. As in any business and known to everybody, more the number of companies the more competition among the moving companies. (Though this is the general principle I do not fully agree with it as I see competition in a different way, which I will explain later here)

    Companies long established in their country hold own to their traditional way of marketing and operation and expect to get the same kind of profit, which they used to enjoy in those good old days. I was talking to the chairman of a leading international moving company in the Asian region who mentioned as "we used to enjoy 50 to 60% profit 15 years before, which has been brought down to less than 20% at present". This is a fact that has to be agreed and realized. He was right when he said, "we had to Change the marketing strategy, pricing, service levels and approach to enjoy the market share we have today".

    This is what I would like to stress here. International moving companies may compete on quality, service levels, and even pricing. The ETHICAL strategy that suits or works best for each moving company may be opted for the betterment of the company. But when you start thinking about competition and competitor and their increasing business against own loosing customer base, you start to think about unethical ways to suppress the competitor. This is the point You start to think about the competitor, forget to think what is good for you, which in result, in my opinion you start to work for your competitor!!!). I can assure that these unethical behaviors will only help you to slowdown your normal thinking, which will result in loosing your customer base to competitors. Remember, Very often your unethical plans will end up in the benefit of your competitors.

    I heard recently a moving company in Singapore went to the extent of making baseless complaint to the town council about the competitor, to which they lost few corporate accounts!!!. I would call it desperate move to survive but suicidal. Imagine what happened - The town council authorities makes a surprise inspection on the competitors and finds everything in order - leaving a comment, "is it the way competition to be handled"?

    This is my question here. MOVING COMPANIES - IS IT THE WAY COMPETITION TO BE HANDLED? Definitely not. Beurocrats who are not involved in day-to-day business sometimes enlighten our thought with such questions.