Strategy Management

STRATEGY
MANAGEMENT
GROUP 8
AKSHITA CHHABRA (281004)
BHAVYE GOYAL (281018)
GAGAN CHITKARA (281021)
KARAN SOOD (281027)
SHIVANGI JAIN (281046)
AKSHAY JAIN (281178)
EXECUTIVE SUMMARY
Value Chain
Internal Analysis
Analysis
PESTEL &
External Analysis Porter’s Five
Forces
Corporate Level
Business
Strategy Analysis
Analysis
COMPANY INTRODUCTION
Type: Cooperative Society

Industry: Dairy/FMCG Company
Founded: 1946
Founder: Tribhuvandas Patel
Headquarters: Anand, Gujrat. India
Area Served: Worldwide
Key People: Rupinder Singh Sodhi (Marketing Director)
Revenue: INR 38,000 Crore
Number of 752 (Marketing Arm)
Employees: 3.6 Million (Milk Producing Members)
ANALYSIS
1 INTERNAL ANALYSIS
● VALUE CHAIN
● SWOT
2 EXTERNAL ANALYSIS
● PESTAL
● PORTER’S FIVE FORCE
3 STRATEGY ANALYSIS
VALUE CHAIN
A value chain is a set of activities that a firm operating in a specific
industry performs in order to deliver a valuable product for the market.
Amul’s Value chain includes-
PRIMARY ACTIVITIES
Primary activities are involved in the creation, sales and transfer of
products (including after sales service).
SUPPORT ACTIVITIES
Support activities that merely support the primary activities.

SWOT ANALYSIS
* Market Share *Cost of Operation * Potential to expand * Increasing
* Excellent Brand to smaller markets Competition
Equity and other
* Excellent Quality geographies.
Management *Chocolates
* Strong distribution * Concentrate more
network on chocolates
* Good Product
Portfolio
Strength Weakness Opportunitie Threats

s
PORTER FIVE FORCES
PESTEL ANALYSIS
Govt of India promulgated a set of laws for dairy sector in order to ensure safety,
hygeine and service factors
GOI has derugulated this sector and there is no need for any sort of licenses
Export Restrictions : Exporting milk powder was banned in 2012
Acts like prevention of Food Adulteration

Amul vs The Naroda based Shri Shakti Dairy case ( aMul shakti or aNul
shakti?)
Ensuring the plants are producing minimal carbon footprints through

effective supply chain management thereby reducing wastage
Dairy waste management
NDDB giving out loans at 0% interest rate
Indian dairy market is expected to grow at a 5% CAGR
NDP being adopted by NDDB, with a mission to double country’s milk
production by 2020
Cultures - Custom of morning tea, more accustomed to milk and milk

products
Lifestyle - Fast food culture caters more demand for cheese, Ice cream etc
Demographic - Growing youth population and more health consciousness
Innovation in Cold chain technology

Extending the reach of network to more and more villages
Technology like low carbon tech and machinery at Amul Chocolate plant
Automation of industry and adoption of TQM
STRATEGY ANALYSIS
AMUL’s business strategy is driven by its twin objectives of -
1. long-term, sustainable growth to its member farmers.

2. Value proposition to a large customer base by providing milk and other dairy products for a low price.
Following strategy are followed by Amul to capture market
1. LOW PRICE STRATEGY

2. COST LEADERSHIP
3. FINANCIAL STRATEGY
These strategies strongly helped AMUL implement its own vision of growth and development. .
CONCLUSION
 Highest turnover- almost 5 times the turnover of mother diary
 Cost leadership
 Effective distribution system- 5% distribution cost
 Adoption of technology- electronic fat testing machine- fat, quality testing- thus
systematic system
 Expansion strategy at village level, district level, and state level
 High expansion- procurement from all states- increasing the processing capacity and
thereby added over 50 products in just 7 years
 Increased farmer income by 4 times in 7 years
 Milk procurement by 2 times in 7 years
 Turnover has increased by 238% in 7 years
 Increased wholesalers and retailers.
 All product under 1 umbrella brand- AMUL (strategy) – reduced advertisement and
promotion cost.
 Amul Girl Anna- world record for longest year of longest campaign happened ever.

Strategy Management

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STRATEGY

Type: Cooperative Society

industry performs in order to deliver a valuable product for the market.

Amul’s Value chain includes-

Primary activities are involved in the creation, sales and transfer of

products (including after sales service).

Support activities that merely support the primary activities.

Strength Weakness Opportunitie Threats

Acts like prevention of Food Adulteration

Ensuring the plants are producing minimal carbon footprints through

Cultures - Custom of morning tea, more accustomed to milk and milk

Innovation in Cold chain technology

1. long-term, sustainable growth to its member farmers.

Following strategy are followed by Amul to capture market

1. LOW PRICE STRATEGY

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