If Amul has become a successful brand - if, in the trade lingo, it enjoys brand equity - then it is because we have honoured our contract with consumers for close to fifty years. If we had failed to do so, then Amul would have been consigned to the dustbin of history, along with thousands of other brands. For close to fifty years now, Amul has honoured its contract with the consumer. The contract that is symbolized by the Amul brand means quality. It means value for money. It means availability. And it means service." - Varghese Kurien, Chairman GCMMF
The Kaira District Milk Cooperative Union or AMUL in India is an example of how to develop a network of firms in order to overcome the complexities of a large yet fragmented market, by creating value for suppliers as well as the customers. AMUL has led the milk dairy revolution in India that has now emerged as one of the largest milk producers in the world.
AMUL’s journey towards Excellence
AMUL’s journey towards excellence is marked by some critical understanding of the business environment in large emerging economies like India.
• It aimed to provide remunerative returns to farmers and also serves the interest of consumers by providing quality products and value for their money
• It also changed the supply chain paradigm in order to reduce the cost to the consumer while increasing the return to the supplier.
• It also realized that its goal could only be achieved in the long run and this required developing values in people and processes that were robust, replicable and transparent.
• AMUL developed distinct capabilities that would deliver competitive advantage to its operations. This included long term cost containment, world-class deployment of technological resources and R&D, and better leveraging of scarce resources.
Micro and Macro Environmental Analysis of AMUL
Macro Analysis: PEST Analysis
I) Political:
Government policies and acts