(6 pages of text)
The Indian packaging industry — represented by a mix of paperboard, plastics, metals and glass — had seen great change leading up to 2013. In 2012, Ajanta Packaging ranked among the top suppliers of glass bottles in India with an employee base of more than 50 and net revenues of US$100 million. The glass-bottle industry had a derived demand and depended on major industries using glass bottles in India, such as the liquor and beer, soft-drinks and pharmaceutical industries.
The case discusses the stiff competition faced by the glass-bottle industry from different packaging options and materials that had entered the industry in the last four to five years. It assesses the changing market dynamics that could have a big impact on the future of Ajanta Packaging, with many companies shifting to PET bottles, Tetra Pak, flexible packaging and other innovative packaging solutions, to reduce costs and improve the durability of products. Ajanta Packaging was highly dependent on glass-bottle sales, as 95 per cent of its revenue came from them. Should it carry on with the same product range, exploit the declining glass-bottle industry with more customers of glass bottles or enhance its product range with more varieties of PET bottles?
This case is designed for use in a segment devoted to strategic management or in a segment on analysis of the business environment and diversification. It is also appropriate for complementing a session on growth in a medium-sized entrepreneurial firm. The objective of the case is to highlight the significance of managing strategic change in an organization with reference to the technological developments in the marketplace. The case presents an ideal platform for discussing different marketing strategies such as market penetration, product development, market development and diversification. It also provides students with an understanding of how macro- and micro-level business environment factors influence the conduct of business. Furthermore, the case helps students work out the strategic choices available to a medium-sized entrepreneurial firm, evaluate the alternatives and devise strategies for successful conduct of the business.
India, Small, 2013
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