Nikhil Raj

Amul Inc. India

Strategic Management- Assignment

Schools of Strategy

Student ID – B0318RBRB04102/16/2011

TABLE OF CONTENTS

INTRODUCTION..............................................................................................2BACKGROUND OF AMUL INDIA.........................................................................3AMUL INC. INDIA- STRATEGY OVERVIEW...........................................................4THE OVERVIEW – MINTZBERG’S SCHOOL OF STRATEGIES....................................4THE CULTURAL SCHOOL - DEFINITION.............................................................5APPLICATION OF CULTURAL SCHOOL AT AMUL INDIA..........................................5LIMITATIONS OF THE CULTURAL SCHOOL...........................................................5THE PLANNING SCHOOL – DEFINITION.............................................................6APPLICATION OF PLANNING SCHOOL AT AMUL INDIA..........................................6ANSOFF MODEL.............................................................................................7MARKET PENETRATION STRATEGY....................................................................7MARKET DEVELOPMENT STRATEGY...................................................................8PRODUCT DEVELOPMENT STRATEGY..................................................................8DIVERSIFICATION...........................................................................................8SWOT ANALYSIS............................................................................................9STRENGTH.....................................................................................................9WEAKNESSES.................................................................................................9OPPORTUNITIES...........................................................................................10THREATS.....................................................................................................10LIMITATIONS OF THE PLANNING SCHOOL.........................................................10THE POSITIONING SCHOOL – DEFINITION.......................................................10APPLICATION OF POSITIONING SCHOOL AT AMUL INDIA....................................11INDUSTRY ANALYSIS: PORTER’S 5 FORCES......................................................11CHALLENGES ATTACHED TO PORTER’S 5 FORCES.............................................13LIMITATION TO THE POSITIONING SCHOOL......................................................13WHITTINGTON - SCHOOL OF STRATEGIES........................................................13DISCUSSION.................................................................................................14PORTER DIAMOND STRATEGY -DISCUSSION.....................................................14PORTER DIAMOND STRATEGY –CHALLENGES....................................................15PORTER’S GENERIC STRATEGY - DISCUSSION..................................................15PORTER’S GENERIC STRATEGY -CHALLENGES..................................................15TOWS MATRIX - DISCUSSION.......................................................................16SO STRATEGIES...........................................................................................17ST STRATEGIES............................................................................................17WO STRATEGIES..........................................................................................17WT STRATEGIES..........................................................................................17RECOMMENDATION.......................................................................................18CONCLUSION................................................................................................18REFERENCES................................................................................................19

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IntroductionStrategic management is one of the key pillars for any organization.

Managing strategies properly is vital to the success of any organization. According

to Mintzberg H. Quin B. (1997, p39) "Strategy is the pattern plan that integrates

an organizational goal, policies and action sequences as a whole." This makes it

imperative for the top level management of any organization to be absolutely

precise about the strategies they want to follow and implement them into the

market for the success of the organization and to be able to stay ahead of their

competitors in the business. Strategies enable an organization to actively

participate not only in the national but even in the global market. There are many

strategies which have been used in the past by organizations to enter other

countries. The main strategies used to enter new markets globally have mainly

been foreign direct Investment (FDI), Mergers, Acquisitions, collaboration etc.

However all the strategies mentioned above would be the second step when an

organization tries to get into cross border investment. This could be international

borders or could just be new area of investment within the national market.

Initially this essay would look at models defined by Henry Mintzberg, which

is about the schools of strategy and comprises mainly three schools they are the

cultural school, the planning school and the positioning school. This would be

followed by some international theories such as the, SWOT analysis, Porter’s

Generic Strategy, Porter’s five forces, Porter’s diamond, and product life cycle of

an organization by analyzing strategies adopted by Amul Inc. India.

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Background of Amul IndiaThe Birth of Amul and development of India’s Dairy Cooperative

Movement The birth of Amul at Anand provided the impetus to the cooperative

dairy movement in the country. The Kaira District Cooperative Milk Producers

Union Limited was registered on December 14, 1946 as a response to exploitation

of marginal milk producers by traders or agents of existing dairies in the small

town named Anand(in Kaira District of Gujarat). Milk Producers had to travel long

distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk

went sour as producers had to physically carry the milk in individual containers,

especially in the summer season. These agents arbitrarily decided the prices

depending on the production and the season. Milk is a commodity that has to be

collected twice a day from each cow/buffalo. In winter, the producer was either

left with surplus /unsold milk or had to sell it at very low prices.

Amul is Asia’s largest dairy co-operative was created way back in 1946 to

make the milk producer self-reliant and conduct milk- business with pride. Amul

has always been the trend setter in bringing and adapting the most modern

technology to door steps to rural farmers. Amul created history in following areas:

a) First self motivated and autonomous farmer’s organization comprising of

more than 2.9 million marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk collection

centers owned by them.

c) Computerized milk collection system with electronic scale and computerized

accounting system.

d) The first and only organization in world to get ISO 9000 standard for its

farmer’s co-operatives.

e) First to produce milk from powder from surplus milk. Amul is the live

example of how co-operation amongst the poor marginal farmers can

provide means for the socio-economic development of the under privileged

marginal farmers. Amul in abroad: Amul is going places. After having

established its presence in China, Mauritius and Hong Kong, Gujarat

Cooperative Milk Marketing Federation (GCMMF), India’s largest milk

cooperative, is waiting to flood the Japanese market. Then, GCMMF is also

looking at Sri Lanka as one of its next export destinations. Amul products

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are already available on shelves across several countries, including the US,

China, Australia, West Asian countries and Africa. (Web 1)

Amul Inc. India- Strategy OverviewWhen Amul was formed, consumers had very limited purchasing power, and

low consumption levels of milk and other dairy products in India. Amul has

adopted a cost leadership strategy to make its products affordable and attractive

to consumers by guaranteeing them value for money beginning with liquid milk,

GCMMF enhanced the product mix through the progressive addition of higher

value products while maintaining the desired growth in existing products. Despite

competition in the high value dairy product segments from firms such as

Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and

the sequence in which Amul introduces its products is consistent with the core

philosophy of providing milk at a basic, affordable price. (Web 5)

The overview – Mintzberg’s School of StrategiesUndoubtedly development of strategic management is one of the

stepping stones towards the success and endurance of any organization in the

market. It is important for every organization to be able to find out a suitable

strategy for them and make themselves aware of the scenarios present in the

current market situation. Turner P. (2003) stated that "In an attempt to guide

those whose job it is to put strategy into practice, Henry Mintzberg, el at (1998)

described the process of a 'strategy safari' and has acknowledged ten schools of

thought in respect to development of strategies. These schools have varied in

popularity overtime". The ten different schools were divided into the groups of

prescriptive, descriptive and synthesis. The difference point between the

prescriptive schools and the descriptive ones is that the previous focus on strategy

formulation whiles the latter emphasis on strategy development. The three

prescriptive schools are considered as the efficiency and stability fundamentals

which create directions as well as objectives for the development of organizations.

According to R. D. Stacey (2007), the three prescriptive schools are "the design

school, the planning school, the positioning school .These three schools become

both fundamental and preconditioned elements of strategic development for each

organization. Added to these schools, the different descriptive schools which are

entrepreneurial school, the cognitive school, the learning school, the power school,

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the cultural school and the environmental school give deep insights in strategy

formulation. All strategy perspectives recognize the relevance of entrepreneurship.

The last group is synthesis that consists of the configuration school, "which

integrates the views of all the other schools in terms of configurations or in term of

transformations" (Stacey R., 2007). This school represents an attempt at

integration which definitively recognizes the complexity of strategy. This

assignment has taken three schools to analyze and apply to Amul Inc. India to

show, how these models work and how an organization can apply these models to

achieve their goals & objectives and be triumphant in global market. The schools

discussed in this essay are here are the cultural school, the planning school and

the positioning school.

The Cultural School - Definition

The cultural school is one of subclasses of descriptive schools. This

school looks at strategy formation as a collective process. "The approach of this

school tries to involve the various groups and departments within the company:

strategy formation is viewed as a fundamentally collective and cooperative

process. The strategy that is developed is a reflection of the corporate culture of

the organization", (Web 2). This model focuses on the vital role the social

processes, beliefs and values play an important role in decision making and in

strategy formation. In addition to this, it not only explains resistance to strategic

changes but helps to deal with prime values in organizations or in regions as well.

Application of cultural school at Amul India

The success story at Amul evolves from a very strong culture which is

inherited in more than 2.9 million milk producers across India. It is clearly visible

that the raw material supplied to Amul comes from farmers and villagers and to be

able to depend on these people Amul makes sure that the interaction within and

outside the organization is positive. In order to maintain a good culture Amul has a

program called the Amul Yatra (Journey) which enables the distributor of Amul to

visit Anand ( Head quarters of Amul) which helps them understand the cooperative

philosophy and culture at Amul. Retailers of the Country also participate in Amul

Yatra. So far, 2779 Distributors, 1654 Distributors’ salesmen and 1490 top

Retailers have participated in Amul Yatra. During this year 80 Key decision makers

of top Modern Format Stores from various Metros have also participated. (Web 1)

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Limitations of the cultural school

A shared commitment to beliefs encourages consistency in an organization’s

behavior, and therefore by discourages changes in strategy. It is culture that

deeply held beliefs and tacit assumptions that act as powerful internal barriers to

fundamental change. Also, the vague of this model is main reason leading to

resistance to change. It can be missed to justify the status-quo. Therefore, each

organization’s attention has also been directed at how to overcome the strategy

limitation of organizational culture.

The Planning School – Definition

The planning school is a member of the prescriptive school which is

generally more concerned with how the strategy should be formulated instead of

how they should be comprised. This model deals with issues such as budgeting,

scheduling and programming. Every business needs to have strategy for their

growth and development, thus this model can be applied in many firms such as

Amul Inc. India to help them become a global organization.

Application of planning school at Amul India

Amul (Anand Milk Union Limited) was formed in 1946, under the dairy

cooperative movement in India (Web 3). Amul is now the largest food brand in

India and Asia’s largest milk producer. To come so far they needed to have a

strategy which is better and superior to their competitors. This was based on

forecasting and global economic condition. However, to grow further and maybe

become world’s largest producer of milk they would require to aware of the

economic conditions worldwide. The planning school might be helpful in

understanding the global situation better and can answer the questions about

further growth. The planning school works in close at the Ansoff model which Amul

has used to analyze the market and their products. Amul definitely wants to

become a global company and they have succeeded pretty much by entering US,

China, Australia, West Asian countries and Africa. This school also looks closely at

the SWOT model, the internal strength weakness as well as the external

opportunities and threat as mention in Makipaa M. (2004). So let’s have a look at

both the models.

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Ansoff Model

Source: (Web 4)

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 (Stone P., 2001). 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,

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in addition to the existing retail network for ice cream, milk and other

products. (Web 1)

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.

(Web 1)

Market development strategy

This strategy is concerned with creating business through developing new

markets with existing products (Stone P., 2001). 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. (Web 1)

Amul is capturing the market of diabetic and health conscious people

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

(Web 1)

Product development strategy

Product development deals with producing new products for the existing

customer base (Stone P., 2001). 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. (Web 1)

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

provide its customers with a totally new product. (Web 1)

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.

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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 (Stone P., 2001). 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.

SWOT Analysis

Strength

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Strength

India’s largest food brand. Low price, High QualityLargest producers of pouched milk in the world.Highly diverse productsGood distribution network

Weakness

Complex supply chain systemProblem in DistributionThird party alliance with the unorganized sector.High dependency on villages for raw materials with weak infrastructureShort life span of the products

Opportunities

Online availability of its productsDiversification of the product portfolio to enter new product categories and enhance existing products like chocolates and processed food.Penetration of the international markets.

Threats

Stiff competition in Butter products from MNC’sYield of Indian cattle is much lower compared to other dairy countriesInflated prices of milk and its productsCompetitors – Hindustan Uniliver, Britannia, Nestle and local players.

Amul has an Indian origin thus creating feeling of oneness in the mind of the

customers.

It manufactures only milk and milk products, which is purely vegetarian thus

providing quality confidence in the minds of the customers.

It is aiming at rural segment, which covers a large area of loyal customers,

which other companies had failed to do.

Amul has its base in India with its butter and so can easily promote

chocolates without fearing of loses.

Weaknesses

There are various big players in the chocolate market, which acts as major

competitors restricting their growth.

Lack of capital invested as compared to other companies.

Improper distribution channel

Opportunities

There is a lot of potential for growth and development as huge population

stay in rural market.

The chocolate market is at growth stage with very less competition so by

introducing new brand and intensive advertising there can be a very good

scope in future. 

Threats

The major threat is from other companies who hold the majority share of

consumers in Indian market i.e. Cadburys and Nestle.

There exists no brand loyalty in the chocolate market and consumers

frequently shift their brands.

New companies entering in Indian market, poses lots of problems for Amul.

Limitations of the planning school

While implementing this model as a strategy, company might come across

some challenges as this model contains which can affect the performance of an

organization. To begin with strategists may focus too much on generating new

strategic concepts, which might put the current objectives at sub standard level;

this may divert the concentration from the original purpose leading to mistakes.

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Risk is major factor in this model as the strategists who apply these concepts may

choose to attempt a competition against competitors and thus generate fresh

strategies, which could be very risky as stated by Sadler P. & James C. (2003). The

other aspect of the planning school is predicting future based on an all out

forecast. This forecast is based on current strategies and current trends of

economy; though, which makes it very complex and risky to take a decision and

implement it in advance.

The Positioning School – Definition

The Positioning school is where the organization can develop its strategic

position within the industry. In other words positioning is oneself in competitive

strategy. This model sees strategy structure as an analytical development (Porter

M., 1985). Porter M. was the founder of the positioning school; he focused on the

constitution of industries and their effect on strategies. The positioning approach

looks at the company's situation in the economic market lay whose goal is to

distinguish the organization from others within the equivalent field. (Steward C, el

at, 2008)

Application of positioning school at Amul India

This model has been applied by many firms across the globe and Amul has

not stayed behind in the race. Amul has also taken help from this model in order to

position itself in the market to stay ahead of its competitors. Amul faces stiff

competition from a lot of local and global players because of their diverse product

range. For example in the pouched milk segment they have stiff competition with

state dairies across India such as Mother Dairy in Delhi NCR reason. In the milk

process food they have to compete with international giants like Nestle and in the

chocolate segment they have to compete with Cadburys. Amul has been able to

make a position for them in the market by being the leader in some segments while

being the follower or the attacker in some. Amul has also used the Porter’s five

forces analysis to good effect in order to achieve and analyze its position in the

market. According to Porter (1985), a business position is based on its strength

and strength is classified into two - cost advantage and differentiation. When these

strengths are applied, it wills consequence to three generic strategies - focus,

differentiation and cost leadership strategy.

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Industry Analysis: Porter’s 5 Forces

According to Porter M.(1980), this framework can be applied to many

organizations. It involves the external environment examining and focusing on the

structure of the industry. The aim of this type of analysis is to develop a strategy

that will enable firms to build up opportunities and protect them from threats. By

doing so, can lead firms competitive positioning. This concept is dividing by 5 force

call Porter's 5 forces

New Entrants: Threat of new entrants for Amul is very high as they are no

barriers to entry in the milk and milk processed food businesses in India.

Amul has to stay alert and aware about the new global or even local players

can enter the market easily and at any time.

Bargaining Power of Customers: The customer has a strong bargaining

power in India in the milk products business as there are a lot of competitors

and the customer can bargain easily.

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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

Substitute Products: High availability of substitute’s cause a threat for

Amul as companies like Britannia, Mother Dairy, Nestle are major

substitutes available.

Bargaining power of suppliers: This probably is the only force where

Amul can tend to relax a little bit as the main suppliers to Amul are villagers

and farmers and they do not enjoy an extended bargaining power with Amul.

Rivalry: The rivalry is this line of business is very high as there is a

presence of a lot of local players as well as the new upcoming international

brands.

Challenges attached to Porter’s 5 ForcesIf Amul follows the Porter’s 5 forces and continue to battle out with the

four main forces as the only thing on Amul’s side is the bargaining power of suppliers it might restrain them from exploiting the market to the fullest and as Amul follows a cost leadership strategy it might end up pricing its products at lower price which can have an effect on the long term growth of the company.

Limitation to the positioning schoolThe positioning school has some limitations and manager or an

organization must take this into consideration. Generally the top level management of an organization will be responsible to formulate the strategies whilst implementation will be done by the lower level. This may cause inconsistency. Managers might set the ideals for a particular strategy however; failure in implementation can cause frustration and could lead to a de-motivated workforce at the lower levels. (Susanne R., 2005)

Another problem exists with this model in the form of its focus. It is very narrow as it is only interested in the data which is either economic or quantifiable. The social, technological or political data is not considered. Positioning school uses the historical and current data to forecast the future trends, this can change quickly because of various reasons. It takes high risk as the historical and present values are the sole source for predicting the future trends, this could result in an unsuccessful implementation of strategy.

Whittington - school of strategies

According to Richard Whittington there are four basic prospective

for the formulation of strategies and it would be inadequate if we do not evaluate

them while trying to talk about strategic management (Shekhar R., 2006). These

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theories express the differences of human capacity to think reasonably and act

more effectively in a given situation.

The Classical: Stresses on rationality and analysis. Also works towards maximization of profits. (Whittington R., 1993)

The Processual: It takes a practical approach of strategy: The world and the knowledge of humans are imperfect, so organizations should take this into account while deciding upon strategies. (Whittington R., 1993)

The Evolutionary: Stresses on the unpredictability of the environment which makes the traditional analysis irrelevant. It works on the biological model of “Survival of the fittest”. (Whittington R., 1993)

The Systematic: This category talks about the importance and to an extent the uniqueness of social systems within which diverse attitudes and conceptualizations can be seen about strategies. So the strategy might show the social system in which it is visualized. (Whittington R., 1993)

Source: (Web 6)

Discussion After looking at the strategy followed by Amul it can be stated that they are using the evolutionary strategy, as they tried to keep the costs lower yet they have been pushing the promotions to attract more and more customer. They have tried to keep the prices down while offering the best possible qualities. This has helped them in capturing the market in pouched milk and the milk processed food sectors. However they have lagged behind in the chocolate and the ice-cream sectors. However if we look at it from a systematic point of view, there no one way of doing things and tweaking with their strategy a little bit might gain more market share in the chocolate and ice-cream sectors.

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Porter Diamond strategy -Discussion

Source: Web 7

According to a report published by The Economic Times (Indian-Financial times) on the 16th Feb 2011 Amul is going to increase the prices by 1/Liter of milk while other producers are increasing it by 3 (Web 8). If we go by this report and apply it the Porter’s diamond, it is quite clearly visible that Amul has been able to minimize costs to become the lowest cost producer and are able to offer products at the cheapest price in the market. This fulfills the criteria to be in the Amul to be using the Porter’s diamond as it suggests becoming the lowest cost producer in the market. Occasionally, a cost leader will also be able to discount its products to increase sales, if it has a significant cost benefit and, in doing so; it can increase its market share. (Web 9)

Porter Diamond strategy –ChallengesCompanies make mistakes through trial-and-error method of

expanding, into foreign markets. The need for learning-by-doing at the local level specifies that becoming a global company is a gradual process (Fernie J. 2005). So it can be stated using the diamond model organizations might incur losses or get into trouble if the strategies implemented are not up to the mark or the mistakes are big.

Porter’s Generic Strategy - DiscussionThe 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.

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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.

Porter’s Generic Strategy -ChallengesAs described by Michael Porter the generic model suggests that if an

organization wants to be successful it needs to one of the strategies and not ‘stuck in the middle’. However, as Amul has a diversified range of products it has taken up all three strategies pretty well to cater to the demand of the different products providing pouched milk at the lowest price in the cost leadership to using health food in the differentiation segment and by also looking to target the broader segment in the ice cream segment. As Amul uses all three strategies it has become difficult for them to follow just one of the strategies to be able to cater to all their business needs. This might require stronger workforce or additional cost for at times at a global level.

TOWS Matrix - DiscussionFor Many years the SWOT analysis has been used to identify the

Strength, weakness, opportunities and threats for an organization. However in the eyes of Koontz H. & Weihrich H. (2008) this is a static analysis and is difficult to develop something out of such analysis therefore the TOWS matrix has been used globally for analyzing competitive situations. The TOWS matrix has a wider scope and could provide essential plan of action. In the case of Amul it has been able to do something similar.

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Internal Factor

External Factor

STRENGTHS (S)S1 Low cost manufacturingS2 Economies of scaleS3 Wide range of products S4 Strong cooperative org. S5 Global player

WEAKNESSES (W)W1 Poor management of logisticsW2 low investment

W3 Perish-ability

W4 lower yield management

W5 Problem in distribution

OPPORTUNITIES (O)O1 Growing global demands

O2 Greater Productivity

O3 Export potential

O5 Supply Chain Management

SO Strategies

Increased productivity through cost effective manufacturing.

Increase global demand through global exposure.

Improve channel of distribution.

W O Strategies

Develop new process to shelf life of milk and milk products

Increaseawareness of scientific developments.

THREATS (T)T1 CompetitorsT2 Rising environmental costsT3 Milk vendorsT4 AdulterationT5 Lower cattle yield

ST Strategies Product eliminating and

diversification Value marketing Hygienic processing

facilities.

W T Strategies Efficient and

economical Procurement Control over logistics

and yield Product positioning

SO StrategiesSome suggestions to increase productivity by using cost effective

manufacturing techniques. Also, increase 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.

ST StrategiesProduct 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 its competitors. Options available can be

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classified as product elimination and diversification strategy, value marketing strategy and also developing hygienic processing facilities. These are some of the main areas of focus under this section.

WO StrategiesTo develop new process to improve the quality and shelf life of milk

and milk products, this can be achieved through pasteurization, homogenization and many other processes like producing UHT milk etc. finally to also increase awareness of scientific developments.

WT Strategies The strategies that have been formed to overcome the weakness and

threats in AMUL Company and the dairy industry as a whole are to apply efficient and economical procurement of products. To create the right type of product positioning for the various product categories that Amul deals with.

Recommendation

After applying various strategic models on Amul Inc. India it can be stated

that they have been able to adopt these strategic models very well however, there

is still room for improvement and Amul can grow further globally. Amul can enter

into joint venture or merger in a lot of European countries to grow its global

presence. Amul Inc. also needs to work on the generic strategies they follow as

they are still in the middle somewhere and it would be good for Amul if they try to

stay in one box of the strategy that being in all of them. Amul need to look

forward to its expansions strategy and could follow the Ansoff model more

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exhaustively to increase its global presence the Market development model would

be the most suitable one for Amul.

Conclusion

After the application of strategic schools and models as a tool for strategic

management the results can be perceived differently and can play a decisive role

in the further growth of the organization as well as the future of the organization.

Strategies generally derive from the top management of an organization which

decides the goals and objectives of the company. Strategies also help the top level

management to be able to decide upon the area of investments in the future as

well as the deployment of resources. Although strategies are formulated at the top

level but they are always implemented from the bottom so it is important for an

organization to be able download the information in such a way that it functions

properly. This can be handled through the use of cultural schools which talks about

having the right culture. During this essay we saw a lot of strategic models

application by Amul to stay competitive and gain market share in various

segments. Amul has participated more actively in the global market. It has been

proven by the success and growth of Amul globally. However, as all the schools

and strategies have their limitations it is important for Amul to be able to find the

right combinations of strategy to be able to become a force to reckon with in the

global milk and milk processed food market.

References

1. Mintzberg H and Quinn B(1997), Strategic process, concept, context and

case, European Edition, Prentice Hall, P 39

2. Turner, P (2003), Organizational Communication: the role of the HR

professional, Chartered Institute of Personnel & Development, P 69

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