Organization Theory

Ayurveda Case
Rahul Mundada (2020SMT6708)

Ans

Options of growth for Ayurveda online

1. Diversification into more Ayurvedic products

Advantages

• With diversified product company can try to increase share in USD 300 billion
market
• Can expand their reach wider and help in making Brand name in the market
• Can explore network of retailers, which helps to grow customers in both consulting
and medicine segment
• Partnership with suppliers can avail large margin for company from retailers, it will
help to increase profitability

Disadvantages

• More capital investment will require to grab more market share

• May lose focus on core objective i.e., consulting which may result in loose of
uniqueness

2. Replica of same online business model in more no of cities, increase presence

Advantages

• Wider reach with increase in no of customers and growth in networks of doctor’s

• Can expand their reach wider and help in making Brand name in the other cities too
• Can retain uniqueness of the company while reaching other cities with original
purpose remains same

Disadvantages

• Might not explore $ 300 billion market

• May not able to create network of supplier which may result in not meeting the
demand

3. Partnership with bigger brands to reach throughout India

Advantages
 • Increased revenue with increase in profitability
• Wider reach in country also can leverage partners customers
• Increase in brand value with increase in trust

Disadvantages

• Bigger brand may involve in partnership on their clause which may restrict some
conditions on the Ayurveda online
• Current business model is unable to meet customer demand as Advait is the only
one full-time employee and company’s structure is organic type
• For meeting customer demands, Advait need to think of digital marketing along with
marketing efforts currently he is putting in, so he need to hire more employees who
are expert in the domain of marketing, digital marketing and work on that part to
explore more potential customer
• He needs to form more partnership with retailers too, so that he can explore $ 300
billion ayurvedic market and reach wider to gain more customers, revenues and
profit

Depends on given situation he can try to choose midway between above given
options like try to expand in other cities, bring in more diversified products check if
they work out, he can hire employees who are domain experts can help business to
grow

Organisational changes

• Recruitment of domain expert employees in marketing, IT, retail network

• Functional head creation with horizontal and vertical integration
• Leadership position for diversified products, may be portfolio wise team
• Request Sharath and Rajavel to become board member and full time employee