3. STRATEGY ANALYSIS :
For any successful model or decision ir venture it is critical to study the model or decision adopted or strategy undertaken in conjunction with a deeper understanding of its impact on the business.
3.1 Strategy and Impact on business : Here we look at some of the significant strategies that impacted the business growth of HUL positively and its impact on its businesses.
Table 2 : Strategy and Impact on business
Strategy Impact
Customisation
- Product flanking
- Different variations of the core product for different segments HUL was one of the foremost companies to customise products by breaking into smaller sachets, customising it to suit the targets cost and value requirements
Rural Reach Rural India is estimated …show more content…
An analysis of the strategies adopted shows that trying new scalable distribution channels has given the biggest advantage to HUL, while some other competitors’ did try to emulate the strategy the size and strategy of the Shakthi Amma project was difficult to emulate [34]. The first mover always has an advantage in market capture and popularity. Especially, the socio-psychological patterns of the bop segment consumers are such that they do not change loyalties very easily even when there are newer players.
As earlier studies in this field have shown that the ‘bottom –up learnings are critical’ for the success of any organization. In the early 200s HUL ensured that every middle manager and new employees spent a minimum of six to eight weeks in the local bop and rural markets to get insights into consumer preferences’, to help develop further strategies and new product developments [35-36]. While some subsidiaries of multinationals operated in bop markets, they did not have local knowledge or local partners with necessary knowledge and capabilities to reach the targeted consumers and this was a major drawback. HUL built on this …show more content…
An analysis of HUL using Porters five forces analysis throws up the below facts listed in table 3.
Table 3 : Porters Five Forces Analysis
Competitive Rivalry
• Increasing competition from other rivals
• Other rivals such as Dabur, ITC, Marico are moving at fast pace
• Big threat from brand such as Patanjali if they able to enter the rural market as well at a fast pace
Threat of New Entrants
• High investment requirements for brand building and distribution
For any successful model or decision ir venture it is critical to study the model or decision adopted or strategy undertaken in conjunction with a deeper understanding of its impact on the business.
3.1 Strategy and Impact on business : Here we look at some of the significant strategies that impacted the business growth of HUL positively and its impact on its businesses.
Table 2 : Strategy and Impact on business
Strategy Impact
Customisation
- Product flanking
- Different variations of the core product for different segments HUL was one of the foremost companies to customise products by breaking into smaller sachets, customising it to suit the targets cost and value requirements
Rural Reach Rural India is estimated …show more content…
An analysis of the strategies adopted shows that trying new scalable distribution channels has given the biggest advantage to HUL, while some other competitors’ did try to emulate the strategy the size and strategy of the Shakthi Amma project was difficult to emulate [34]. The first mover always has an advantage in market capture and popularity. Especially, the socio-psychological patterns of the bop segment consumers are such that they do not change loyalties very easily even when there are newer players.
As earlier studies in this field have shown that the ‘bottom –up learnings are critical’ for the success of any organization. In the early 200s HUL ensured that every middle manager and new employees spent a minimum of six to eight weeks in the local bop and rural markets to get insights into consumer preferences’, to help develop further strategies and new product developments [35-36]. While some subsidiaries of multinationals operated in bop markets, they did not have local knowledge or local partners with necessary knowledge and capabilities to reach the targeted consumers and this was a major drawback. HUL built on this …show more content…
An analysis of HUL using Porters five forces analysis throws up the below facts listed in table 3.
Table 3 : Porters Five Forces Analysis
Competitive Rivalry
• Increasing competition from other rivals
• Other rivals such as Dabur, ITC, Marico are moving at fast pace
• Big threat from brand such as Patanjali if they able to enter the rural market as well at a fast pace
Threat of New Entrants
• High investment requirements for brand building and distribution