Return to Previous Page

Sugandh Shoppe: A Small Entrepreneur's Forward Integration Strategy*

CASE STUDY, ENTREPRENEURSHIP & STARTUPS
ET Cases - GSMC, 9 Pages

Case Preview

Sugandh Shoppe: A Small Entrepreneur’s Forward Integration Strategy

 

India has been witnessing a vast change in entrepreneurial landscape. There is heightened sense of awareness about this change among young entrepreneurs. They are taking risks that are enabling them to leapfrog into the next level of business transformation. Small entrepreneurs from India have tremendous opportunities both in terms of resources and diversity of deployment of those resources. Electronic commerce (E-commerce) is opening new gateways for many forms of enterprises. There is a lot of enthusiasm and willingness to support innovative forms of doing business from the Government of India. The Union Budget for financial year 2014-15 earmarked INR10,000 crores (over $2 billion) fund to accelerate and incubate new ventures in the country.

Traditional small entrepreneurs had relatively fewer opportunities for experimentation. Their next generation in the family on the other hand has many forms to choose from in doing the same old business. One such example of business model innovation in a small traditional venture is that of Sugandh Shoppe Pvt. Ltd. (Sugandh Shoppe). It serves as an example of how modern approach of running an age old business not only leads to better financial gains but also helps in building better customer value in a short span of time.

Sugandh Shoppe, promoted by Deepak Thakral (Deepak) of Nagpur, transformed a traditional family owned incense stick manufacturing business into modern stores selling all kinds of fragrances and products used in religious ceremonies............

Teaching Note Preview

Sugandh Shoppe: A Small Entrepreneur’s Forward Integration Strategy

 

Synopsis

Small entrepreneurs have to make decisive choice of business model among several alternatives available for expansion of their business. One of the modes for scaling up of existing business can be the use of forward integration approach. This case deals with strategy adopted by a small entrepreneur from Nagpur who transformed his traditional family business of manufacturing and selling incense sticks and other fragrance products. Leveraging his experience of selling and distributing local brands in an organized market, Deepak Thakral, conceptualized ‘Sugandh Shoppe’, a one stop shop for all devotional products using franchising approach.

Case Positioning and Setting

This can be used in MBA or other graduate level programs in courses such as Entrepreneurship Management, Strategy Formulation and Family Business Management. It can be used to demonstrate business model innovation by a small scale business with traditional background. It will enable the participants to explore alternatives around business model innovation and bring about pros and cons of each alternative.

Pedagogical Objectives

The case is structured to achieve following learning/teaching objectives:

  • • To understand various elements of entrepreneurship
  • • To explore possible alternatives for expansion of small business
  • • To show franchising as a method of forward integration used by entrepreneurs to expand their business

 

Assignment Questions

  • I. What was the core competence of family business inherited by Deepak from his father along with his brother Ghanshyam? How did it help company to sustain in an unorganised incense stick market for long number of years?
  • II. What are pros and cons of business model innovations proposed by Deepak? Is the new model adopted by the company likely to sustain in future profitably?
  • III. .......

$4.57
Rs 0
Product code: ENTP-1-0012, ENTP-1-0012A

Abstract

Small entrepreneurs have to make decisive choice of business model among several alternatives available for expansion of their business. One of the modes for scaling up of existing business can be the use of forward integration approach. This case deals with strategy adopted by a small entrepreneur from Nagpur who transformed his traditional family business of manufacturing and selling incense sticks and other fragrance products. Leveraging his experience of selling and distributing local brands in an unorganized market, Deepak Thakral (Deepak), conceptualized 'Sugandh Shoppe', a one stop shop for all devotional products in the year 2007. He uses franchising model to spread the reach of his business. Core competence in manufacturing of incense sticks has been retained by outsourcing and re-branding other related products. Internal learning and growth is leading to favourable financial position and a growing customer base.



Pedagogical Objectives
The case is structured to achieve following learning/teaching objectives:

  • To understand various elements of entrepreneurship
  • To explore possible alternatives for expansion of small business
  • To show franchising as a method of forward integration used by entrepreneurs to expand their business

Case Positioning and Setting
This can be used in MBA or other graduate level programs in courses such as Entrepreneurship Management, Strategy Formulation and Family Business Management. It can be used to demonstrate business model innovation by a small scale business with traditional background. It will enable the participants to explore alternatives around business model innovation and bring about pros and cons of each alternative.


* GSMC 2016, IIM Raipur

This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$4.57
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)