Case Analysis of Gujarat Co-operative Milk Marketing Federation Limited

Submitted to

Dr. Purva Kansal

University Business School

Panjab University, Chandigarh

On

09 March 2013

In

Partial fulfillment of

Masters of Business Administration (MBA)

By

Aseem Soi

Sarabjit Singh

Sahil Khanna

Vaibhav Trikha

EXECUTIVE SUMMARY

In today’s competitive world while entering in the market it is very necessary

to have good knowledge of the potential of a particular market. The growth

of a company is invariably determined not just by its strategy, but on how it

responds to the challenges it

encounters. Over the decades AMUL has successfully countered several

challenges that have come its way with innovative responses and continuous

improvement, which have enabled it to remain stable and even convert

some of these challenges into opportunities. It is the culture of endurance

that has accorded AMUL the insight and focus to deal with the current

economic environment. Drawing from its inner strength and beliefs, AMUL

responded by launching several initiatives across all its operations in various

geographies that are helping the group achieve growth even in current

times. It is also this very strategic culture that will propel AMUL to continue

on its growth trajectory in years to come.

The report provides a comprehensive insight into the company, including

business strategies and operations, by using strategic analysis models such

as industry life cycle,

porter’s 5 forces and also the key success factors index, SWOT analysis. We

have reported an assessment of the internal and external environment of

AMUL dairy, considered its strengths and weaknesses, opportunities and

threats, its competitive advantages that are valuable for the efficiency and

effectiveness of its operations. Based on the information obtained from the

above assessments, we analyzed its strategic matrix and generated several

strategic options to attain its strategic options more successfully has been

made. Lastly we have included in this report, the usefulness of applying

these management models for AMUL dairy.

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Table of Contents

Executive Summary 1

1The External Environment Analysis 3

1.1Pest Analysis 3

1.2Porter’s Five forces Model6

1.3SWOT Analysis 9

2Value Chain Analysis 11

3Amul’s Business Strategy 13

3.1Industrial Life Cycle 13

3.2BCG Matrix 14

3.3Ansoff Model15

3.Financial Ratios Analysis 17

3.5TOWS Matrix 18

4.1Porters’s Generic Strategies 20

4.2Future Options 20

4.3Implementations of New strategies 21

4.4Usefulness of strategic Management Models 22

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Internal Environment

Structure Culture

Resources

Task Environment

(Industry)

Societal Environment

Technological Forces

Political-Legal Forces

Sociocultural Forces

Economic Forces

Stockholders

Governments

Suppliers

Employees/ Labour Unions

Special interest groups

Customers

Creditors

Communities

Competitors

Trade Associations

1. The External Environment Analysis:

1.1 Pest Analysis

Political Factors:

The Indian processed dairy industry has grown and diversified enormously in the last few years.

To ensure the proper development and growth of this industrial sector, the Government of India

has instituted various laws and regulations.

Prevention of Food Adulteration Act, 1954

This Act is the basic statute that is intended to protect the common consumer against the supply

of adulterated food. This specifies different standards for various food articles. The standards are

in terms of minimum quality levels intended for ensuring safety in the consumption of these food

items and for safeguarding against harmful impurities and adulteration.

Milk and Milk Product Order (MMPO) 1992

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The Milk and Milk Product Order (MMPO), 1992, issued on June 9, 1992 seeks to ensure the

supply of liquid milk, an essential commodity, to consumers by regulating its processing and

distribution. Within eight years of its operation, the Central/State Registering Authorities have

till December 2000 registered 666 units with a total processing capacity of 65.8 million litres per

day (mlpd).

Export (Quality Control & Inspection) Act, 1963

The Export Inspection Council is responsible for the operation of this Act. Under the Act, a large

number of exportable commodities have been notified for compulsory pre-shipment inspection.

The quality control and inspection of various export products is administered through a network

of more than fifty offices located around major production centres and ports of shipment.

Economic Factors:

Amul Dairy” is working in the best area of Anand in Kaira District. This is very good for dairy

industry.Some benefits arising out of this location as follows:

1) Cheap Labour

2) Cheap Land

3) Cheap water supply

4) Constant Electric supply

5) Constant Water Supply

6) Suitable Nature and Environment

Social Factors:

Life Style Trend With more money on hand, more and more Indians are drinking milk and

buttering their bread. Rising income levels have led to a rapid increase in the consumption of

milk and milk products among Indian households.

Day by day the need of milk is continuously increase. In the year 1972 average requirement of

the milk per capita is 172 per gram. While in 2000 the requirement 215 gram per year. So there

will be more demand or milk and milk products in nearer future.

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The consumption of milk is highest in north India that is 278 gram per day, while in west region

174 gram per day. In eastern and southern area combines 215 grams per day require. 46% of the

total milk is consumed in liquid form and 47% is converted into ghee, paneer and ice cream and

only 7% milk goes for western products like powder, cheese etc.

The 98% of the milk produced in the rural area which is cats of 72% of the population whereas

the urban sector with 28% populations.Even in urban India India as high as 83% of the

consumed milk comes from the unorganized sector.Presently only 12% of the milk is represented

by packaged and branded pasteurized milk.

Technological Factors:

Some areas of Indian dairy industry can be strengthened by the induction of specialized

technologies and equipment from overseas. These include:

Raw milk handling: It needs to be upgraded in terms of physico-chemical and microbiological

attributes of the milk collected. The use of clarification and bactofugation in raw milk processing

can help improve quality of the milk products.

Milk processing: Better operational efficiencies are needed to improve yields and reduce

wastage, minimize fat/protein losses during processing, control production costs, save energy

and extend shelf life. The adoption of GMP (Good Manufacturing Practices) and HACCP

(Hazard Analysis Critical Control Points) would help manufacture milk products conforming to

international standards.

Packaging: Another area is the range of packing machines for butter, cheese and the like. Better

packaging can help retain nutritive value of products packed and extend shelf life. A cold chain

distribution system is needed for proper storage and transportation of dairy products.

Value-added products: There's immense scope for value-added products like desserts, puddings,

custards, sauces, mousse, stirred yoghurt, nectars and sherbets.

IT Technology “Smart dairy Solution” a comprehensive solution portfolio that addresses the

unique needs of Dairy plant management. It provides a simple but complete business solution to

efficiently meet a wide variety of general and Dairy-specific business requirements

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1.2 INDUSTRIAL ANALYSIS: PORTER’S FIVE FORCES MODEL

1) Threats Of New Entrants :

i. Economies of Scale: GCMMF enjoys economies of scale, which is difficult to match by

any other competitor. It is because of his reasons that no regional competitor has grown

to a national level.

ii. Cost and Resources advantages: Amul dairy is co-operative society. That means

“cooperation among competitive is the fundamental principle. Amul dairy is managed the

norms of GCMMF and market the products under the brand name „Amul‟ which has

very good reputation at domestic and international level. Here the raw material

procurement is very difficult for the new entrants. Consequently capital requirement is

also high. Still new entrants are moderate.

iii. Brand preferences and consumer loyalty: there is an immense level of Brand preference

of Amul in the mind of the people. The level of preference specifically in the liquid in the

milk sector is that would go to other retailer if the retailer does not have milk.

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Rivalry:Competitive rivalry is very

high due to the presence of local players

and other established and

upcoming brands

New Entrants :

Threats of New Entrants, as there are no

entry barriers

Customers:Customer has the bargaining power due to

the presence of various

competitors

Substitute Products

High availability of other

product causing the threat of substitution

Suppliers:Rural milk

producers are the major

suppliers which makes their bargaining

power limited

iv. Access to distribution channels: The distribution channel of GCMMF is a very planned

and perfect one. For any new entrant to enter it would be a very difficult task. For

GCMMF the result is years of hard work and its investment in its employees as well as at

different levels in the distribution network.

v. Inability to much the technology and specialized know- how of firms already in the

industry: The technology used by Amul is imported from Denmark. It is a state of art

technology in India, a firm would require a huge amount of resources.

vi. Capital Requirements: the total investments required in the industry is huge and is a

decision worth considering even for MNC‟s . The investments decision cover the

processing costs as well as marketing costs. To compete with the brand Amul in India is

difficult as Amul is synonymous to Quality.

vii. Amul dairy is co-operative society. That means “cooperation among competitive” is the

fundamental principle. Amul dairy is managed under the norms of GCMMF and market

the products under the brand name ‘Amul’, which has good reputation at domestic and

international level. Here, the raw material procurement is very difficult for the new

entrants. Consequently Capital requirement is also high. Still new entrants are emerging

such as domestic and international players. So the treats of new entrants are moderate.

viii. Government rules and regulation are not favourable for new entrants. Raw material is

also depending on the villagers who are mostly depend on good rain. In the seasonal

uncertainties will also restrict the new entrants to establish the new plant.

2) Bargaining power of supplier :

i. The objective of Amul dairy is not profit making. As it is a part of co-operative society, it

runs for the benefit of farmers those are the supplier of milk and users of milk product.

According the concept of the cooperative society supplier has bargaining power to have

a good return on his or her supply. However, supplier has limited rights to bargain with

the cooperative society because it made and run for the sake of mass not for individual

benefit.

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ii. There is moderate bargaining power of the supplier. In olden days there were not any

kind of cooperative societies as the farmer was exploited. But, nowadays the farmer’s

right has been protected under the cooperative rules and regulations, which ultimately

result in moderate power of bargaining from the supplier.

3) Bargaining power of buyers :

Amul dairy is having state of the art technology bring down from Denmark German. And except

loose milk vendor mother dairy is the single district level seller of the milk. However the Amul

dairy is bound by the norms of federation. So, the pricing policy will be decided only by

GCMMF and customer would have not have bargaining power. In nutshell, the bargaining power

of the buyer is low.

4) Rivalry among competitors:The products of the most of dairy which are listed under the Gujarat cooperative milk

marketing federation are marketed under the one unique name ‘Amul’. Though, it is not having

competition from the domestic level. Amul dairy which is at the state level faces the competion

from Nestle, Britania, Gayatri dairy, sugam, Dairy dan. The major competitor of the Amul in ice-

cream category is HLL’s kwality wall’s.Although, dairy is not having tough competition from the

local players but international level it is exist.

5) Threats Of Substitute :Most of the milk and milk products substitute are very low. Milk powder can be taken as a close

substitute for the milk. In case of the ice-cream category the close substitute is cold drink and

soft drinks. So, the substitute of the milk and milk product is completely low.

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1.3 SWOT Analysis

Strengths Weaknesses

1. Wide Range of Products

2. Economies of Scale

3. Low cost manufacturing

4. Strong cooperative org.

5. Global Player

1. Poor Management of logistics

2. Low investment

3. Perishability

4. Lower yield management

5. Problem in distribution

Opportunities Threats

1. Growing global demand

2. Greater Productivity

3. Export potential

4. Robust economic growth

5. Supply Chain Management

1. Competitors

2. Rising environmental costs

3.Milk vendors

4. Adulteration

5. Lower cattle yield

Strengths:The strengths for AMUL are product differentiation, Economies of scale, low cost

manufacturing and strong cooperative organization. The demand profile is absolutely optimistic.

While the margins are quite reasonable, even on packed liquid milk.

Weaknesses:The Weaknesses for Amul are Poor management of logistics, low investment,

perishability, lower yield management. Perishability is being overcome partially by UHT

technology. UHT( Ultra high temperature) gives a longer shelf life to milk and milk products.

Opportunities:As a Global Enterprise, Amul will be meeting global demands and ensure greater

productivity and the opportunity to enhance integration in order to increase efficiency and

effectiveness in the business. It has already wide geographic positions and hence it will give it an

advantage to get access to gain presence in mature markets. Efforts to exploit export potential are

already on, as Amul is exporting to Bangladesh, Sri Lanka, Nigeria and the Middle East. By

following the new GATT treaty, opportunities have increased tremendously for the export of

agric-products in general and dairy products in particular.

Threats :Local competitors are the major problem faced by Amul. They sell their products at a

lower price, since being a low capital company, they have fewer expenses to take care of.

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Secondly, as the environmental costs are rising day by day, it’s getting tough to carry the same

pricing throughout. Thus cutting down the extra cost will surely help. Adulteration, also a major

threat to quality, takes place due to illiterate farmers from remote villages.

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2. Value chain Analysis

The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985.

To analyze the specific activities through which firm can create a competitive advantage.

1. Activities of Value Chaina. Primary Activities

i. Inbound logistics ii. Operations

iii. Outbound logisticsiv. Marketing & salesv. Services

b. Secondary activitiesi. Firm infrastructure

ii. Human resource managementiii. Technologyiv. Procurement

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Amul’s Value Chain Process

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3 AMUL’S Business Strategies

Amul’s Business strategies have twin objectives:

i. Long-term, sustainable growth to its member farmers

ii. Value proposition to a large customer base by providing customer base by providing milk

and other dairy products a low price.

3.1 Industry Life Cycle

Introduction Growth Maturity Decline

White revolution in India began in 1946 with two village cooperatives and 250 litres of milk per

day, nothing but a trickle compared to the flood it has become today. They came up with AMUL

as a brand name, which means ‘priceless’ in Sanskrit language. It has made India the largest

producer of milk and milk products in the world and the white revolution has finally created a

billion dollar brand.

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The Industry life cycle has four stages. They are Introduction, Growth, Maturity and

Decline.Dairy industry as a whole falls under early stage of Maturity, this is because of the vast

range of products they offer to the customers domestically and internationally. Countries like Sri

Lanka, UAE, Australia, Honk Kong, China, Singapore, UK and USA have already started selling

Amul products of late.

3.2 BCG MATRIX

a. Cash cow

i. AMUL butter (normal)

ii. AMUL kool

iii. AMUL milk (fresh)

b. Stars

i. AMUL butter (low fat)

ii. AMUL tazza milk (packaged)

iii. Amul cheese

c. Question marks

i. AMUL chocolates

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ii. AMUL lassi

iii. AMUL mithai mate

d. Dogs

i. AMUL nutramul

ii. AMUL shakti

3.3 Ansoff Model

The Ansoff matrix developed by Igor Ansoff is a very essential tool for strategic planning. It

helps the firm to identify the firms’ growth using the intensification and diversification strategy,

which aims at achieving growth through certain modifications in the firm’s existing business.

According to Ansoff model four different strategies are possible. They are –

Market penetration strategy: This strategy involves achieving growth through existing products

in existing market. Amul’s market penetration strategy involves its expanding its customer base

in the existing market.

Amul is set to build up 10,000 `Amul Parlours' across the country during the year.

These stores will sell the entire product range of Amul products, in addition to the

existing retail network for ice cream, milk and other products.

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It is trying to get more and more customers through a more intensive distribution. It is

opening more stores at Highways, Railway stations, Airports, Bus stations, Schools,

Colleges, and Industrial Canteens etc.

Market development strategy: This strategy is concerned with creating business through

developing new markets with existing products. Amul is using this strategy to capture new and

unexplored sectors without creating new products.

Amul is now shifting its focus from urban to rural markets and smaller towns. In 2005

Amul added 900 new stores all across small towns to increase its reach.

Amul is capturing the market of diabetic and health conscious people through sugar

free ice-cream, which is a variation of an existing product.

Product development strategy: Product development deals with producing new products for the

existing customer base . Amul has vastly capitalized on this strategy by constantly coming up

with newer products.

Amul-Cool (milk based cool drink) and Amul-Kool café – these are the products aimed

at the youth of the country with synonymous marketing campaigns.

Stamina – the instant energy whey based sport drink has been launched to provide its

customers with a totally new product.

Amul-Masti, the packaged buttermilk is aimed to be another non-carbonated cool drink

in the Amul Cool range which is not only aimed at the youth but also at the more

mature society.

Diversification: Diversification is a very important part for any business organization. For

the further growth opportunities of a company diversification is required. When a new

product is launched into the new market diversification holds good and provides more

growth opportunities in the future. Diversification is a high-risk strategy as it involves

taking a step into a territory where the parameters are unknown to the company. Amul has

identified the need to increase its presence in newer markets and thus have come up with

many new such strategies for increasing its presence in the entire market.

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3.4 FINANCIAL RATIOS ANALYSIS

Key Ratios 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99Measures of Liquidity Current Ratio 1.044888 1.233886 1.014282 1.068432 1.217122 1.365361

Net Working Capital 64.28 217.28 23.28 132.28 300.28 425.28Operations Activity Ratios Inventory Turnover 10.37303 13.64281 14.5889 10.48786 14.41111 21.63962

Total Asset Turnover 3.184656 4.184885 4.228562 4.064071 5.849138 7.345097Leverage Measures

Debt-Equity Ratio 5.772328 6.879714 4.443161 2.36777 1.241562 1.026634Measures of Profitability Net Profit Margin 0.10% 0.15% 0.74% 0.62% 0.56% 0.72%

Return of Assets 0.33% 0.62% 3.11% 2.53% 3.28% 5.28%

Return on Equity 7.5% 11.3% 66.5% 31.8% 19.2% 24.1%Common Stock Ratios

Earnings per Share (EPS) 3.9% 6.7% 40.9% 38.9% 17.0% 26.0%

From the above table, following can be interpreted about the financial condition of the company.

Current ratio and Net working capital which shows the liquidity of the company is growing subsequently in the given years indicating the strong operating conditions of the company, as the optimum current ratio for any company is supposed to be around 1.2.

As compared to the industry averages of milk products, which was around 9 in 1993 and around 17 in year 1998, Inventory turnover ratio and total asset turnover of AMUL indicate that the products are replaced quickly in the market. This shows that AMUL has efficient demand and supply management.

Debt- Equity ratio is decreasing over the years showing betterment of financial health of the company thus increasing its credibility.

Net profit margin is also getting better for amul indicating betterment of operations resulting in increasing bottomline as compared to sales.

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Earnings per share is also increasing year by year showing better returns for the investors and shareholders.

The summary of financial ratios analysis indicates that AMUL has significantly improved its operations in making value for its shareholders.

3.5 TOWS MATRIX

Strengths1. Wide Range of Products2. Economies of Scale3. Low cost manufacturing4. Strong cooperative org.5. Global Player

Weaknesses1. Poor Management of logistics2. Low investment3. Perishability4. Lower yield management5. Problem in distribution

Opportunities1. Growing global demand2. Greater Productivity3. Export potential4. Robust economic growth5. Supply Chain Management

SO Strategies-Increased productivity through cost effective manufacturing- Increase global demand through global exposure- Improve channel of distribution

WO Strategies- Increase of opportunity through new GATT treaty- Develop new process to improve the quality and shelf life of milk and milk products- Increase awareness of scientific development

Threats1. Competitors2. Rising environmental costs3.Milk vendors4. Adulteration5. Lower cattle yield

ST Strategies- Product eliminating and diversification- Value marketing- Hygienic processing facilities

WT Strategies- Efficient and economical procurement- Control over logistics and yield- Product positioning

SO Strategies (Maxi Maxi): Amul can use the strategies that have been formed after in depth

strategic analysis of the company and its industry. Some suggestions in this case would be to

increase productivity by using cost effective manufacturing techniques. Also, increased demand

for their products world over by first gaining more exposure to the global market. With the use

of expansion strategy, it can overcome the location issue, as Amul can expand more areas and it

will make the distribution of channel areas easier and convenient.

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ST Strategies (Maxi Mini): Amul must put into action some of these strategic options to meet

the threats using its strengths. Product Differentiation is very important to differentiate Amul

from the competitors, as it can tackle down the competitor’s product if Amul products are more

outstanding and different from competitors’. Options available can be classified as product

elimination and diversification strategy, value marketing strategy and also developing hygienic

processing facilities.

WO Strategies (Mini Maxi): The strategies formulated to overcome the weakness through

opportunities are increase of opportunity through the new GATT treaty, develop new process

to improve the quality and shelf life of milk and milk products, this can be achived through

pasteurization, homogenization and many other processes like producing UHT milk etc. Finally,

Amul should also try to increase awareness of scientific developments.

WT Strategies (Mini Mini): The strategies that have been formed to overcome the weakness

and threats in Amul and the dairy industry as a whole are to apply efficient and economical

procurement of products. Secondly, to have control over the logistics and to maintain them

efficiently. Lastly, create the right type of product positioning for the various product categories

that Amul deals with.

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4.1 Porter’s Generic StrategyThe three basic strategies are cost leadership, differentiation and focusing. According to Porter

(1985) "Each of the generic strategic involves different route to competitive advantage, the cost

leadership and differentiation strategies seek competitive advantage in a broad range of

industry segment, while focus strategic aim at cost advantage (cost focus) or

differentiation(differentiation focus) in a narrow segment."

Cost leadership: Products like ice-cream, chocolates, cheese etc. were always

considered to be premium product and were sold at a higher price. All players before

Amul targeted only the premium segment in the market. The high prices were due to

high production, refrigeration, distribution etc. Amul because of its less expensive

distribution channel and low raw material cost has been able to price its products

comparatively lower which has enable Amul to gain market share through cost-

leadership strategy.

Differentiation: Amul was the first to come up with different product, flavors varied in

health usage, product ingredient etc. It also used differentiation, by using associated

advertising by Indian made products showcasing patriotism, distribution channels etc.

Focus: Ice-creams, chocolates, processed milk product was mainly targeted at the youth

of India however, Amul brought about a change by positioning them as a family product,

and this increased the volumes of consumption. Thus by pushing its product at a

untouched market segment they witnessed a gain in market share.

4.2 FUTURE OPTIONS

Product Positioning: Placing a product in that part of the market where it will receive

afavorable reception compared to competing products. In case of Amul it has apositioning

strategy and it is “The taste of India”. This had created value for everyone inthe value chain, be it

customers or the suppliers/farmers. The USP for Amul is Qualitywith affordability, which

appeals to most of the targeted markets.Amul positioned itself with India’s first pro-biotic

wellness ice cream and sugar freedelights for diabetics. This was based on good strategies of

positioning which helpsincrease awareness and also improve brand image. They expanded their

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products interms of those that can be used even by those who are restricted from consumption

dueto medical reasons. Amul also priced their products such that it made competitor“kwality

walls” rethink their marketing/pricing strategy. This type of product positioninghas proved

beneficial to amul and so they must come up with many more of such ideasand products that can

help them move forward.

Product Elimination and diversification: Product elimination is when the productreaches the

stage where continued support is no longer justified where performance isfalling short of

expectations; it is desirable to pull the product out of the market place. Inthis case Amul

eliminated one such product that was bottled water called “JALDHARA”this was done as they

noticed that this product did not have many potential customers tolast in the market. Product

diversification is where seeking unfamiliar products ormarkets or both in the pursuits of growth.

Therefore Amul in this category too had aphilosophy that was followed. They had progressive

addition of higher value productswhile maintaining the desired growth in existing products.

Secondly Amul introducedproducts with consistent value addition but never left the core

philosophy of “ providingmilk at a basic affordable price.”

Amul must also use a value marketing strategy, which provides a product that works asclaimed,

and is accompanied by decent service, and is also delivered on time. It mustinclude and provide

the following: i.e. commitment to quality, value for money, thegeneration for awareness and

finally foster loyalty.

4.3 IMPLEMENTATION OF NEW STRATEGIES

Product Positioning:

System: Product improvisation-Amul must try and improve on certain products thatare or as

popular as the other products like butter, milk, and ice cream. This does nothave to be done only

after having a clear marketing research. These are a fewcommon actions that must be taken.

Structure: Amul hoardings are successful, but there is a need to advertise by cablechannels,

newspapers etc to reach the rural areas. For improvisation they must focuson advertising to gain

more awareness for those products.

Policy: It must include strengthening of liquidity and working capital in order to bemore

successful while trying to create awareness. Also to maintain the quality of theproducts as the

percentage of perishability is very high for these products.

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Product Elimination & Diversification:

System: Supply chain add-ons must be further strengthened for easierdiversification of the

products. Also to venture in to new fields such as processedfood, vegetable and fruits.

Structure: Venture into the above-mentioned fields is a good option as they can usethe same

Anand Pattern to carry on its operations. Therefore strategizing won’t takemuch of time and

more over this will give higher margins

Policy: They must achieve diversification and elimination of products through agood research

system and also analyze the strengths, weaknesses, threats andopportunities. Amongst them they

must try to nullify the threats and weaknesses.

4.4 USEFULNESS OF STRATEGIC MANAGEMENT MODELS

There were several models that were applied so as to assess the competitive environmentof

AMUL and to develop and generate more strategic options for the company. Briefdescriptions on

the usefulness of the models being used in the company analysis aregiven.

Industry Life Cycle: this model came to use as a useful tool for analyzing theeffects of an

industry’s evolution on competitive forces. It is important to understandthe use of this model

because it is a survival tool for businesses to compete in theindustry effectively and successfully.

I have identified that the current dairy industryis positioned in the early maturity stage. As the

global demands have pushed the barsway high comparatively.

PORTER’S 5 FORCES: This model is useful to analyze the competitive industryenvironment

and business strategy development. This analysis helped me understandthe strengths of AMUL’S

current competitive position. Its objective was toinvestigate how the organization needs to form

its strategy in order to developopportunities in its environment and protect itself against

competition and otherthreats of substitutes, power of suppliers and buyers.

SWOT ANALYSIS: This can be very helpful for recognizing and analyzingorganization’s

internal strengths and weaknesses, as well as the externalopportunities and threats faced by the

organization. By understanding these fouraspects of its situation, the company can better

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leverage its strengths, correct itsweaknesses, capitalize on golden opportunities, and deter

potentially devastatingthreats.

TOWS MATRIX: This matrix is very useful for generating a series of alternativesthat the

decision makers of a company or business unit might not otherwise haveconsidered. It can be

used for the organization as a whole or for a specific businessunit within a corporation. In this

report it was useful in analyzing the strengths of thecompany and how it can be used to generate

strategic options by taking advantage ofthe opportunities and to avoid threats. Also to generate

strategies that take advantageof opportunities to overcome weaknesses, minimize weaknesses

and avoid threats.

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