BAHRIA UNIVERSITY ISLAMABAD

Course: CONTEMPORARY ISSUES IN BUSINESS

Teacher MUHAMMAD ALI QASIM

Assignment # 01

Student Ihsan Ullah

Enrollment# 01-322221-006
MBA (Weekend)
FALL 2023 (Semester)

Subject Pivots strategy for three companies of choice

Bahria University Islamabad Campus

 27th October, 2023

Table of Contents

PIVOTE STRATGY -SURVIVAL ......................................................................................................... 2

1. Gourmet Pakistan:................................................................................................................. 2

2. Khaadi:.................................................................................................................................... 3

3. DESCON ENGINEERING ........................................................................................................ 4

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PIVOTE STRATGY -SURVIVAL

• Come up with 3 companies that have used pivot as core competency and have
survived.

1. Gourmet Pakistan:
Gourmet Pakistan is a well-known food and confectionery company based in Pakistan.
It started as a small bakery in Lahore, Pakistan, in 1987. The company's initial business was
focused on baking and selling a variety of bakery items such as bread, pastries, and
cakes.

Issues Encountered in the Current Business:

Gourmet Pakistan faced following challenges in its current business operations.

• Increased competition in the food industry,

• changing consumer preferences,
• rising operational costs, and economic fluctuations.
• Deal with issues related to food safety and quality control, as these are crucial
concerns in the food business.

Why Pivoting:

To adapt to the evolving market and address the challenges they faced, Gourmet
Pakistan have considered various factors to pivot its business. These factors include
market research showing shifts in consumer preferences, a need to differentiate itself
from competitors, and the desire to explore new revenue streams. Gourmet might have
also been influenced by the changing landscape of the food industry, including the rise
of delivery services and the demand for healthier food options.

Actions for Existence (Using Pivoting):

• Catering and Events: Gourmet Pakistan might consider expanding its catering services
for events such as weddings, corporate gatherings, and parties. This can be a
lucrative revenue stream, as people often seek catering for special occasions.

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Additionally, providing event management services alongside catering can add

value.
• Online Food Delivery: The company can invest in an online food delivery platform or
partner with existing delivery services to reach a wider customer base. Online food
delivery has gained significant popularity, especially in urban areas.
• Franchising: Gourmet Pakistan may explore franchising its brand and business model.
This can allow them to expand rapidly while collecting franchise fees and royalties.
• Health-Conscious Products: Given the increasing demand for healthier food options,
Gourmet Pakistan might introduce a line of health-conscious products, such as
organic baked goods, gluten-free options, or meals with low sodium and sugar
content.
• Merchandising: The company can explore selling branded merchandise, such as
cookbooks, cooking utensils, or even ingredients like spices and sauces. This can
create additional revenue while reinforcing the brand's identity.
• Collaborations and Partnerships: Collaborating with other food or beverage brands,
restaurants, or cafes can open up opportunities for cross-promotions and new
revenue streams.

2. Khaadi:
Khaadi is a well-known Pakistani fashion brand that was founded in 1998. It started as a
small boutique in Karachi, Pakistan, and initially focused on hand-woven fabrics and
clothing,

Issues Encountered in the Current Business:

Khaadi faced several challenges in its current business operations, including increased
competition in the fashion industry, changing consumer preferences, supply chain
disruptions, and the need to adapt to evolving fashion trends. Additionally, there was a
growing demand for online shopping and the need to address ethical and sustainability
concerns in the fashion industry.

Actions for Existence:

To ensure its existence and adapt to the changing market conditions, Khaadi has taken
the following actions:

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• E-Commerce Expansion: Invested in online sales channels, including a user-friendly

website and mobile app, to cater to online shoppers and expand its reach.
• Global Expansion: Opened physical stores and launched e-commerce operations in
international markets, particularly in the Middle East and the United Kingdom.
• Sustainable Fashion: Embraced sustainable practices, including eco-friendly
materials and ethical production, to meet the demand for environmentally conscious
products.
• Diversification: Expanded product offerings beyond clothing to include accessories,
home textiles, and fragrances.
• Brand Collaborations: Partnered with designers and influencers to create exclusive
collections and generate brand buzz.

Khaadi’ s success in adapting to these changes reflects its ability to pivot its business
strategy to align with evolving customer preferences and market dynamics.

3. DESCON ENGINEERING
Descon Engineering, a prominent EPC (Engineering, Procurement, and Construction)
company in Pakistan, has employed strategic pivots to adapt to changing market
conditions and explore new growth opportunities. Let's delve into the key elements of
Descon Engineering's pivoting strategy:

Issues Encountered in the Current Business:

Descon Engineering faced challenges typical of the engineering and construction

industry, such as economic fluctuations, market competition, and evolving client needs.
Additionally, changes in government regulations and policies could impact the energy
and construction sectors.

Actions for Existence:

To ensure its existence and adapt to changing business conditions, Descon Engineering
took the following actions:

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• Diversification of Services: The company expanded its services to include sectors such
as power, infrastructure, and construction, leveraging its EPC expertise. This
diversification allowed them to tap into new markets and revenue streams.
• International Expansion: By taking their expertise overseas, Descon broadened its
client base and diversified its revenue sources.

Descon Engineering's strategic pivots have had a substantial impact on the company's
growth and resilience. Diversifying services and expanding into international markets
reduced dependence on specific industries and domestic markets, enhancing
adaptability to changing market conditions. This pivot allowed the company to explore
a wider array of project opportunities and establish a stronger international presence.
The commitment to quality and safety standards has allowed Descon Engineering to
maintain its reputation as a reliable EPC company across various industries. Overall,
Descon Engineering's strategic pivoting strategy has contributed to its long-term success
and its ability to thrive in a dynamic and evolving market.

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