Patanjali Ayurved Limited: Disruption or Innovation?
(8 pages of text)
Case (Pub Mat)
In 2012, the founder of Patanjali Ayurved Limited (PAL) and his associate were leveraging a unique business model by venturing into the fast-moving consumer goods sector in India. By March 2016, PAL had become the fourth-largest company in this highly competitive industry and was planning to become the market leader by 2020. Through its low-priced herbal and Ayurvedic products, PAL occupied a unique white space in the already existing strategic groups of domestic and multinational competitors. Industry experts were undecided about whether PAL posed a serious threat to multinational and domestic firms or if PAL should be praised for creating a new market for its products in India. If PAL was posing a real threat, then other fast-moving consumer goods firms had to develop strategies to maintain their own position, and PAL needed a plan to face the challenges involved in its future growth.
The case is suitable for use in undergraduate and postgraduate business strategy and marketing management courses. It is primarily intended to highlight the concept of strategic groups, business model innovation, disruptive innovation, and low-cost strategy. After completion of the case, students will be able to do the following:
- Understand business model innovation and implementation of low-cost strategy across value-chain activities.
- Understand how a firm can compete aggressively with leading giants in the fast-moving consumer goods sector.
- Distinguish situations where innovation causes disruption in nature or leads to the occupation of white space in a strategic group.
- Perform a strengths, weaknesses, opportunities, and threats (SWOT) analysis to examine challenges this company could face.
- Explain how personal branding of a founder can be used for direct, spiritual, and content marketing.
- Explain the concepts of disruptive innovation, business model innovation, and personal and umbrella branding.
India, Large, 2016
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