NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
Breakthrough Business Expansion Strategy
Submission Date & Time: 2021-11-25 12:28:11
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Prem Rawat
Assignment Taken
Develop an International Market expansion planCase Understanding
A successful fast-food restaurant Ramalingam Foods, established in Bombay, 1965 by Mr. Ramalingam Venkatesh was famous for authentic south Indian fresh cooked food and filter coffee. During 1975, India went to some political issues and all company had to follow some rules , even Ramalingam had to sale his food items at minimum price. After considering emergency time, Ramalingam foods started selling idli/dosa batter for better customer experience. His son Mr vijay Ramalingam was come up with new business idea. He wanted to expand his business terriotory but the problem was that the batter has a minimum shelf life. He decided to sell batter as powder, which consumable and people can enjoy the instant cooking. People liked this Instant mix and after buying domestically they were selling this instant batter in foreign countries as well. Ramalingam food’s operating revenue is Rs.152 Crore, and it’s EBITDA has increase by 3.16%. With this Ramalingam want to expand his business internationally, but he didn’t have permission & License, and not even enough capital.BCS Solution Summary
 After analyzing all the segments and alternate strategies to implement. We have decided to go with cluster penetration strategy in Middle east countries (UAE, Saudi Arabia & Oman) as it is FEASIBLE, ECONOMICAL AND OPTIMAL.Solution
Company Name: Leading Solutions
Client Name: Ramalingam Foods
Goal (Problem Statement): To expand to International Market
5W1H Analysis of the goal (Problem Statement), to move forward
What?: To capture International Market and expand globally company is looking for opportunities mainly in three regions i.e. Middle-east, South-east Asia & England.
Why?: As many retailers and visitors from these countries are purchasing this instant mix product in large quantities and selling it in international market. So, the company is trying to capitalize on this opportunity.
Where?: There mainly 3 regions to target i) Middle-east ii) South-east Asia ii) England but company can afford to enter 1 region in current condition.
When?: Company is looking to start operations as soon as possible.
Who?: Company has selected us (Optimal Solutions) to consult and create an expansion plan.
How?: How company will expand in this countries? Which country? How much budget needs to be allocated? How many hiring needed?
Solution:
- Region, Countries & Reason?
- Out of all 3 Regions, we have decided to enter Middle east region.
Reason: 1) High percentage of Indian population, ranging from 15–42% of total population.
2) Lower number tariffs and regulations on Indian products.
3) Good trade and political relations
4) Low transportation cost and both the reason trade a lot between themselves.
- In Middle east region, we will expand to Saudi Arabia, UAE and Oman.
Reason: 1) Adjacent countries, easy to expand and increase market share.
2) Low shipping cost from India.
3) High number of Indians in these 3 countries.
|
Country |
Indian Population |
% of Total Population |
|
Saudi Arabia |
25,94,947 |
23.22% |
|
UAE |
38,60,000 |
42.1% |
|
Oman |
8,40,000 |
16% |
Business Strategy:
CLUSTER PENETRATION AND ESTABLISHMENT STRATEGY
Unlike, normal practice of entering a country by business is to target all Metro cities and Tier-1 cities then entering Tier-2 cities then Tier-3 cities.
Our Strategy: Instead of following general practice we will enter the most populous city of the country and then nearby cities of the city and creating a cluster of strong hold in the country in 3 years.
Benefit: 1) Low costing to enter just 1 big city and nearby small cities.
2) High benefit from word of mouth.
3) Strong Consumer base
4) Easy to expand in future as clusters help building customer loyalty in nearby states and provinces.
After 3 years, Company will be able to enter 2-3 big clusters of each country and then company can look forward to entering nearby countries.
Conclusion
 After analyzing all the segments and alternate strategies to implement. We have decided to go with cluster penetration strategy in Middle east countries (UAE, Saudi Arabia & Oman) as it is FEASIBLE, ECONOMICAL AND OPTIMAL.Video
https://youtu.be/E8DyJZHUKMAComments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management
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