Patanjali: Swadeshi Jeans or Foreign Shores?
(9 pages of text)
Case (Pub Mat)
Over the past five years, Patanjali Ayurved Ltd. (Patanjali) had emerged as a major player in India's fast-moving consumer goods industry. Building on the capabilities of its two founders, the company had differentiated its products with a unique mix of Indian nationalism, yoga spiritualism, and natural/Ayurvedic ingredients. In combination with its low-price and low-cost position, this strategy had challenged the incumbent multinational and conventional Indian competitors. In October 2016, Patanjali’s two co-founders considered adding blue jeans to the company’s business portfolio and expanding its current products into international markets. However, some observers doubted whether Patanjali's successful strategies could be successfully extended to fashion. Others believed the jeans initiative would be problematic because Patanjali had more compelling growth opportunities, such as increasing sales of its existing products within India and abroad. Patanjali's founders needed to decide on the appropriate priorities for their company's continued growth and success.
After working through the case, students will be able to:
- determine the appropriate priorities to ensure continued growth and success for a company that manufactures nationally and spiritually based natural products;
- explain the basis for a company's past success, how its strategy has changed and evolved, and how new growth options leverage (or not) the company's current capabilities; and
- describe how domestic competitors—both multinational and Indian companies—can respond to the emergence of a local competitor by launching a unique strategy.
India, Large, 2016
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