In an industry, which is highly regulated with compliance and statutory laws, prices are

prescribed by the government agencies. The industry has low entry barriers, therefore
has over 30000 organisations of which only 0.000025% are organised, with the others
highly unorganised and non-compliant. The industry is highly price-sensitive and
majority of the businesses expect compliant and efficient services. How do you sell and
grow your business keeping in mind government regulations, price sensitivity of the
customers as a Sales President.

Since the industry is highly regulated with compliance and statutory laws, there won’t
be a possible situation of abuse of dominant position by any company in the sector.
Also, the existent of low entry barrier suggests that the sector is well compliant with
Competition law provisions and there exists no scope of predatory pricing as the price
factor is regulated by the government. The issue which needs to be addressed is :

a. The humongous volume of companies in this area of business.

b. Sector being price sensitive and highly unorganized despite having compliance
and statutory laws in place.

Approach should be to develop core competence in this sector and then come up with
innovative products which can provide scope to company to play upon the price factor.
The first mover advantage with new products will be a source to capitalize revenue
despite of existent players in the market. Technological upgradation of services and
products offered can provide a satisfactory solution to the consumers which would
reflect in expansion of market share. So far as the product or services remains
innovative its pricing mechanism is not in defiance to competition laws and it falls in
exception category of IP rights, if the same is claimed on prior note.

For the unorganized players who are non- compliant to regulatory laws, the Company
can play the role of whistle blower and could take up the initiative to clean up the
market. Also, pricing strategy cannot be determined on a standalone basis it has to be
ascertained by having holistic approach towards R&D, Business Development, market
share, financial strength of the co., dynamic revenue projections on adopting different
prices, legal compliance and relaxations.