Eggscellence: SKM Egg Products Export (India) Limited
(7 pages of text)
SKM Egg Products Export (India) Limited (SKM) manufactured processed egg products, including egg powder and liquid egg, which it exported to advanced international markets. The company had gone through phases of turnaround, countering challenges and a severe debt overload. In 2016, it had overseas subsidiaries in Japan, the Netherlands, and Russia. The chief executive officer had promoted SKM’s use of technology, quality processes, and accreditations to move up the value chain. India was the third-largest egg producer in the world, and he saw India’s specific advantages of scale and a mature eco-system in egg production, collection, feed, and poultry as logical elements for selecting an export-led growth strategy. He was planning another turnaround to counter a 20 per cent revenue hit that his top line had suffered in 2016–17 because of the impact of the 2015 avian flu epidemic in the United States and the resulting drop in global egg-product consumption and prices. His mission was to make SKM a ₹7.5 billion company by 2022. What actions should the company take regarding genetically modified crops? How should it approach opportunities to import feed material ingredients, eggs, and egg products from other source countries? Should it consolidate its overseas operations and leverage the domestic market? If so, how?
This case can be used in undergraduate or graduate courses on international marketing, international business, and emerging markets, particularly in units on emerging-market companies becoming globally competitive. After working through the case and assignment questions, students will be able to do the following:
- Describe how an emerging-market company can succeed as a global player by leveraging its first-mover advantage as well as costs and other advantages of an emerging economy.
- Explain the importance of including the development of sustainable capabilities in technology, quality processes, product development, and accreditation as part of a business model in relation to global competitiveness.
- Describe the use of public–private partnerships in greenfield projects.
- Describe how an emerging-market company can use strategic alliance as a global market entry strategy.
- Outline the advantages of operating a business with concern for the environment and a triple bottom line.
- Identify future opportunities and recommend suitable growth strategies for an emerging-market company such as SKM.
Agriculture, Forestry, Fishing and Hunting
India, Medium, 2015-17
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