Dabur

Print this article The Dabur strategy: forget it work? February 06, 2007 11:20 IST When a banyan trees branches hit the ground, they start playacting as roots, too. After a while, it is tall(prenominal) to make disclose which is the trees main source of nutrition -- the original roots, or the branch-turned-roots. It is a particularly apt analogy for Dabur India, and not however because a banyan tree has been the logo of the company for since its inception. In Daburs case, though, the banyan tree stands for what has not been achieved. The company has been branching off -- it has seven brands in the oral care category, nine in the hair care space and six brands in foods. In fact, the Rs 1,852-crore (Rs 18.52 billion) company has a presence in categories ranging from mosquito repellents and juices to face packs and honey, any(prenominal) acquired and some developed in-house. Trouble is, not one of these categories contributes more than than 21 per cent to the companys revenues. Still, Dabur has been growing at a lively 17 per cent over the past troika years. Which raises an interesting strategy question: is there a even out way to grow? What is ruin: a few agent brands that are nurtured to offer huge returns, or a encompassing array of products all of which contribute meagre sums that, nevertheless, add up to a reasonably good total?

There is a school of thought that believes Daburs choice may not be the best way of ensuring future growth: too many segments will constrain it from scaling up significantly to fight increasing competition and that will bring down boilers suit pace of growth. Hear some analysts on the subject. It is probably better for a company to create a few indorse brands rather than dissipate its energies on too many products, because that is what will result in sustainable margins, says Manish Saigal, associate director, KPMG. Adds Ritesh Chandra, associate director, Ernst & Young, It is difficult to scale up organically these days because brands are forever being upstaged. Now, if... If you want to get a full essay, point it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.