Name:_ATIS, Ayana Dawn S.

____

Final Exam (Feb 3, 2021)

Bustrat 1C

Case: Adjanta Packaging

Questions:

Use the case, Adjanta Packaging, in answering the questions below:

1. Deepankar’s contemplation to take up related diversification with a new product portfolio of

PET bottles targeting new customers and markets, is an example of:

a. Corporate Strategy
b. Business Strategy
c. Functional Strategy
d. None of the above.

Discussion:

A. It is an example of a Corporate Strategy. The particular reason for this is that in a Corporate
Strategy it usually describes a company’s overall direction in terms of its general attitude
towards growth and the management of its various business and product lines. It is a long-term,
clearly defined vision of the direction of a company or organization. It helps determine the
overall value of the organization, sets strategic goals and motivates workers to achieve them in
which Deepankar’s contemplation of diversification and targeting new customers and markets
fit.

2. Analyze and discuss the key contributors to Adjanta’s success. The discussion may include, but
should not be limited to -- (SWOT) assessment—

Strengths (internal) Weaknesses (internal)

LEADING BREAKAGE
MANAGEMENT TEAM COSTS
MARKETING
PRODUCTS
LOCATION

Opportunities (external) Threats (external)

PACKAGING COMPETITIVE MARKET

GROWING INDUSTRY SUBSTITUTES
GOVERNMENT SUPPORT PRICE WAR
 Discussions/Analysis:

For its strengths, Ajanta is considered as one of the primary glass bottle suppliers in India. Its
management has flexibility and power to negotiate with suppliers and customers, ensures commitment
and quality of service and professional expertise. Their marketing involves sourcing several contracts
with various global manufacturing companies and establishing strong procurement and supply-chain
systems with a diversified supplier base. They have good quality-focused and cost-effective wide range
of products. And lastly, the availability of their warehouses in various locations.

Ajanta’s weaknesses on the other hand are the heavy weight and fragile nature of glass bottles
and the increased prices of raw materials causing for their costs to inflate.

Opportunities of the company are the following: New generation of consumers appreciate high
– end bottling and labeling, there is a growing community of packaging appreciators and there has been
a cultural shift and deregulations made by different state governments to support the use of glass or PET
bottles.

Lastly, Expensive new marketing campaigns, PET bottles began replacing glass bottles and
aluminum cans began being used and suppliers poaching other companies’ clients by slashing prices are
the threats concerning the company.

3. Using the product-market expansion grid, discuss the various growth and expansion strategies
for Adjanta’s and make recommendation/s.

Discussions:

For Market Penetration, the company uses its products in the existing market in which is evident
in Ajanta’s actions in trying to increase their market share with the growing competition. They
can execute this by decreasing prices to attract new customers, increasing promotion and
distribution efforts and acquiring a competitor in the same marketplace.

In a product development strategy, the firm develops a new product to cater to the existing
market. Ajanta do have a strong understanding of their current market and are able to provide
innovative solutions to meet the needs of the existing market. They can implement this by
investing in R&D to develop new products to cater to the existing market, acquiring a
competitor’s product and merging resources to create a new product that better meets the
need of the existing market and forming strategic partnerships with other firms to gain access to
each partner’s distribution channels or brand.

For a market development strategy, the firm enters a new market with its existing product(s). It
would be successful if (1) the firm owns proprietary technology that it can leverage into new
markets, (2) potential consumers in the new market are profitable, and (3) consumer behavior
in the new markets does not deviate too far from that of consumers in the existing markets in
which Ajanta hits all the mark.
 Lastly, in a diversification strategy, the firm enters a new market with a new product. Ajanta
plans on following or undertaking this strategy due to the challenges that they are currently
facing. It is the strategy that is riskiest. The risk can be mitigated somewhat through related
diversification wherein there are potential synergies to be realized between the existing
business and the new product/market.

4. In terms of BCG matrix, Adjanta Packaging would probably be rated as:

a. A dog b. A question mark c. A cash cow d. A star

Discussion:

C. A CASH COW. Ajanta Packaging is a cash cow particularly considering their supplier
management service strategic business. This has been in operation for over decades and has
earned Ajanta Packaging a noteworthy amount in revenue. The market share for Ajanta
Packaging is high, but the overall market is declining as companies manage their supplier
themselves rather than outsourcing it. The recommended strategy for Ajanta Packaging is to
stop further investment in this business and keep operating this strategic business unit as long
as its profitable.

Good luck!