In India the process of economic liberalisation started in the early 1990s and has picked up pace since then. The whole process was not sudden but very gradual and it can be even termed as slow. But sometime in the middle of this decade things started changing and almost everybody started realising that the process of reform is irreversible and that survival lay in joining the race and not opting out of it. As a matter of fact a lot of pressure came from the average Indian customer, who for the first time got a taste of myriad brands, having been exposed to a wide range of companies offering a variety of products. Organisations today, have to drastically realign their strategies for survival.
Organisations follow two different kinds of policies.
The run of the mill organisations, the fly by night kinds, usually adopt a strategy to introduce products in quick successions in the market at a very low price segment without worrying about the quality or service. Many such companies came, gave a scare to the established once and then vanished away. But this policy denied the market dynamics from settling to an equilibrium state. Many organisations with a long term vision and power especially the bigger players e.g. the multinationals, have decided to sacrifice their premium on price by lowering the prices substantially. For doing this they have worked on some strategies again.