Logic, however, favoured Amul, with its size (turnover of $850 million in FY 2006-07) dwarfi ng GBFL (turnover of $78 million
in FY 2006-07) and its pan-India network of more than 3,500 distributors edging out GBFL’s 2,000. And considering that Hershey will take on well entrenched global giants like Nestlé & Cadbury head-on, GBFL’s case gets weaker.
Perhaps the very wide product portfolio (including many traditional items), Amul’s management & operational structure & the heavy price for controlling stake in Amul might have tilted the case in favour of GBFL. And with this relatively more subdued entry into India, Hershey will now have to make massive investments in its distribution network and in aggressively ramping up the product portfolio. Amul, of course, could be conveniently forgotten as a case of sour grapes!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
· My Blog
· IIPM News
· IIPM : IIPM Links
· IIPM: More about IIPM
· IIPM Alliances - IIPM - by RAVI
· IIPM PUBLICATION
· IIPM: The Indian Institute of Planning and Management-------
in FY 2006-07) and its pan-India network of more than 3,500 distributors edging out GBFL’s 2,000. And considering that Hershey will take on well entrenched global giants like Nestlé & Cadbury head-on, GBFL’s case gets weaker.Perhaps the very wide product portfolio (including many traditional items), Amul’s management & operational structure & the heavy price for controlling stake in Amul might have tilted the case in favour of GBFL. And with this relatively more subdued entry into India, Hershey will now have to make massive investments in its distribution network and in aggressively ramping up the product portfolio. Amul, of course, could be conveniently forgotten as a case of sour grapes!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
· My Blog
· IIPM News
· IIPM : IIPM Links
· IIPM: More about IIPM
· IIPM Alliances - IIPM - by RAVI
· IIPM PUBLICATION
· IIPM: The Indian Institute of Planning and Management-------
