End of June 1987, Mr. Asad Ali, owner of Regal Electric Gas, faced with an important decision regarding the pricing of his company desert coolers. The market price for this product was introduced increased by about 5% in the wake of new taxes in India’s state budget, which was previously announced two weeks. However, the tax had been repealed after the announcement in response to public pressure recently. Given this backlash, Asad asked if he reduce his p … Read more »

End of June 1987, Mr. Asad Ali, owner of Regal Electric Gas, faced with an important decision regarding the pricing of his company desert coolers. The market price for this product was introduced increased by about 5% in the wake of new taxes in India’s state budget, which was previously announced two weeks. However, the tax had been repealed after the announcement in response to public pressure recently. Given this backlash, Asad asked whether to reduce its prices immediately.
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Wasim Azhar
Source: Stanford Graduate School of Business
6 pages.
Release Date: 09 October, 2006. Prod #: M315-PDF-ENG
Regal Electric Gas: Price leader or price follower HBR case solution