Ensign Security Services is one of the largest security guard service firms in North America. From its inception in 1989 the company has developed a long list of customers and had a waiting list of new customers. Because the chief executive officer and founder of the company believed in hiring the best security guards, treating employees fairly and had developed a strong experience management team, the company was able to provide high quality service at premium rates. However, the market was changing: customers, although aware that pricing represented the value of service, were no longer willing to pay more; most of Ensign's competitors were charging lower rates; and many of the smaller firms were merging or being acquired. The chief executive officer must decide the pricing options he has and how to maintain or improve the company's competitive advantage.
