Amul Dairy Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Amul Dairy Case Solution

CASE OVERVIEW

Amul was founded in 1946 in Gujrat State India. The company was established with an aim to end the exploitation of powerful local trade associations that were involved in manipulating milk prices. Amul has set up itself as a model for development in rural areas of India and empower the local milk producers that attributed Amul’s success. Amul became a leader in various Indian markets for dairy products. The company’s mission revolved around making milk available to every corner of the country. Amul was operated under its own developed cooperative model that was a three-tier structure and comprised of Village Cooperative societies, district-level diary unions, and state-level federations. Amul’s cooperative model was helpful in maintaining the prices of milk by cutting out middlemen

However, despite the success and recognition, the company was facing challenges regarding its future positioning, as the changes were occurring in demand and demographics of India. The Managing Director of Amul Rahul Kumar was also concerned about the new technological advancements, foreign competition, and a global system.

Company’s Current Strategy

The overall strategy of the company was to maintain the prices of milk and related products and to preserve the natural nutrition of the milk related products. Furthermore, the company was also concerned about the well-being of farmers and emphasized on the financial, educational, and societal needs of small and landless farmers. Amul was focused to make its products available to every corner of the country. The major products of the company that adds value in its offering are milk related products, butter, cheese, baby food, high protein weaning food, chocolate, malted milk food and wide variety of other dairy products.

Problem Statement

Despite the market leadership position and the success, the company was facing several challenges that required immediate resolution. The shifts in Indian demographic and demand became difficult to fulfill; therefore, in order to address this situation, the company was required to strengthen its cooperative system upon which it operates. Moreover, the competition was also high within the industry due to the increase in demand of milk and dairy products in India, which has opened the doors of the market for many influential players in the market. Apart from domestic players, many multinational players also attempted to enter the market and to acquire the market share of Amul, such as Nestle. In addition, the Indian farmers were lagging behind the farmer in other developed country with regards to technology and education. Therefore, the management of the company was concerned about the future positioning of the firm, which was under the threat. The company required to act immediately in order to address these issues, so as to maintain the firm’s competitive position.

SWOT ANALYSIS

In order to analyze the firm’s external situation, threats and opportunities will be identified first. Then the internal situation will be analyzed, which includes strength and weaknesses of the company. (Valentin, 2005 )

OPPORTUNITIES

Several opportunities that have been identified that can be used to provide benefits to the firm. To address the challenge of competition, the company can use its existing brand positioning, market leadership position, high quality, and low prices to strengthen its customer loyalty. Moreover, the company can also exploit international market opportunities through mergers and acquisitions, which would help it in accessing foreign markets. In this way, the company can expand its business in international markets. Furthermore, the company can also maintain its market share by keeping the prices low....................

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