Patanjali Ayurved Limited: A Local Player Posing Threat to Multinationals
The case study enables discussion about creating successful business proposition in short span of time in a hyper competitive industry by creating uncontested market space and making competition irrelevant. In a short span of five years, Patanjali Ayurveda Limited (Patanjali), home-grown manufacturer of natural and organic products, overruled the Indian FMCG space with product efficacy, ultra-competitive pricing, varied product categories, and strong brand ambassador and brand believers. The case enables students to learn differentiation strategies to create one’s own space in price sensitive and hyper competitive market space. The discussion highlights – how phenomenal growth can be achieved and sustained in over-crowded industry. How marketing strategy catalyzes reach to mass market in short span of time? The case discussion bolsters the arguments that phenomenal growth rate can be a reality in price sensitive industry by creating one’s own market space, making competition irrelevant and sustaining competitive advantage.
Prerequisite Conceptual Understanding/Before the Classroom Discussion
The case discussion covers important theoretical concepts of strategic management and marketing management. The students are encouraged to read the following mandatorily as that would be helpful to carry out meaningful discussion and adequate analysis of this case study:
- • Anita M. Mcgahan, “How Industries Change”, Harvard Business Review, 2004, 82(10):87-94.
- • Booms, Bernard H.; Bitner, Mary Jo, “Marketing Strategies and Organization Structures for Service Firms”, Marketing of Services. American Marketing Association, 1980: 47–51.
- • Jay Barney, “Firm Resources and Sustained Competitive Advantage,” Journal of Management 17, no. 1 (March 1991): 99–120.
- • Kim, W. Chan, and Renée Mauborgne. “Blue Ocean Strategy”, Harvard Business Review, October 2004: 76-84.
- • Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York: 1980.
- • Pankaj Ghemawat, “Sustaining superior performance”, Strategy and the Business Landscape, 2nd Edition, Pearson Publication, 2007.
- • Thomas L. Wheelen and J. David Hunger,” Internal scanning: Organizational Analysis”, Concepts In Strategic Management and Business Policy, 13th Edition, Pearson Publication, 2016: pp. 166-175.
Case Positioning and Setting
This case study is developed for post-graduate management programs such as MBA, Executive MBA, and Executive Development Programs for the following specialized courses and topics:
• Strategic Management: To teach topics such as ‘Blue ocean strategy’, ‘Sustained competitive advantage’, ‘Industry Analysis’, ‘Competitive strategy’, ‘Business-level strategy’
• Marketing Management: To teach topics such as ‘Marketing Strategy’, ‘Sustainable business practices’
Given the approach of this case towards business-level strategies and marketing strategy, instructor may exploit interdisciplinary aspects of the case as per the requirement of specialized courses.
I. Discuss the changes in Indian FMCG industry in the last one decade. How Patanjali has changed the game?
II. What do you understand by sustained competitive advantage? Analyze the competitive advantage of Patanjali and will it be sustainable?