Dabur Case Study
DABUR INDIA LTD. - GLOBALIZATION
CASE ANALYSIS
ECONOMIC ANALYSIS FOR BUSINESS DECISIONS (EABD)
CASE SYNOPSIS
Set in June 2007, the case is about an Indian enterprise attempting what few other consumer packaged goods (CPG) companies from emerging markets have attempted to do i.e., move beyond national geographical boundaries to the global arena. In most emerging markets, including India, CPG is a local business characterized by indigenous players aspiring to rule at provincial levels. Very few graduate to national status. Having acquired a place among the top 10 CPG companies in India, Dabur India Ltd. (Dabur) has taken the next step forward. The case examines whether global expansion, uncommon among its genre, is logical for Dabur. It looks at the issues not only in the context of Dabur’s unique positioning in the domestic market, which itself is growing, but with particular reference to the ongoing expansion in Nigeria.
CASE ISSUES
Should Dabur build scale first in India before investing in global operations? Does global expansion detract the company from its core market? What are the reasons why Duggal and his team are expanding globally?
What are the domestic competencies that Dabur can leverage in a global market? Is the company’s template for globalization workable? Why is the template not working in Nigeria? How should Dabur address the Nigeria market?
1.
Yes
Should Dabur build scale first in India before investing in global operations?
1. Scale enhances the level of resources – financial, human and operational – with which Dabur could better manage the business uncertainties of global expansion. Domestic scale reduces the risks involved in global operations. 2. Scale provides a set of internal capabilities and skill sets that the company could deploy readily in overseas markets.
3. Scale lowers the cost of entry into a new market. 4. Building scale in the home market should be central to Dabur’s growth strategy because the
CASE ANALYSIS
ECONOMIC ANALYSIS FOR BUSINESS DECISIONS (EABD)
CASE SYNOPSIS
Set in June 2007, the case is about an Indian enterprise attempting what few other consumer packaged goods (CPG) companies from emerging markets have attempted to do i.e., move beyond national geographical boundaries to the global arena. In most emerging markets, including India, CPG is a local business characterized by indigenous players aspiring to rule at provincial levels. Very few graduate to national status. Having acquired a place among the top 10 CPG companies in India, Dabur India Ltd. (Dabur) has taken the next step forward. The case examines whether global expansion, uncommon among its genre, is logical for Dabur. It looks at the issues not only in the context of Dabur’s unique positioning in the domestic market, which itself is growing, but with particular reference to the ongoing expansion in Nigeria.
CASE ISSUES
Should Dabur build scale first in India before investing in global operations? Does global expansion detract the company from its core market? What are the reasons why Duggal and his team are expanding globally?
What are the domestic competencies that Dabur can leverage in a global market? Is the company’s template for globalization workable? Why is the template not working in Nigeria? How should Dabur address the Nigeria market?
1.
Yes
Should Dabur build scale first in India before investing in global operations?
1. Scale enhances the level of resources – financial, human and operational – with which Dabur could better manage the business uncertainties of global expansion. Domestic scale reduces the risks involved in global operations. 2. Scale provides a set of internal capabilities and skill sets that the company could deploy readily in overseas markets.
3. Scale lowers the cost of entry into a new market. 4. Building scale in the home market should be central to Dabur’s growth strategy because the