AJANTA PACKAGING.pptx

AJANTA PACKAGING.pptx

• 1.
  AJANTA PACKAGING GROUP-3 TANVI SWARUP(22IB485) AANCHAL MITTAL (22IB KAPIL PANT (22IB SAARTHAK AGGARWAL (22IB KANCHI LODHI (22IB GOURAV JAIN (22IB AMAN HARAKLAL (22IB
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  BRIEF ABOUT AJANTAPACKAGING • Ajanta Packaging ranked among the top suppliers of glass bottles in India with an employee base of more than 50 and net revenues of US$100 million • The case discusses the stiff competition faced by the glass-bottle industry from different packaging options and materials that had entered the industry in the last Few years. • With many companies shifting to PET bottles, Tetra Pak, flexible packaging and other innovative packaging solutions, to reduce costs and improve the durability of products. Ajanta Packaging was highly dependent on glass-bottle sales, as 95 per cent of its revenue came from them.
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  Q1. Conduct aPorter’s Five Forces Analysis for the glass industry based on the details in the case.
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  THREATS OF NEWENTRANTS- moderate Factors that reduce the threat • requires substantial capital and resource investment. • existing regulatory framework imposes certain challenges • psychological switching cost for consumers is high • access to the distribution channels is restricted. Factors that increase the threat • Existing regulations support • switch the brands due to weak/no brand loyalty. • Building a distribution network is easy for new players. • Retaliation from the existing market players is not a discouraging factor. How they can tackle it! • raise psychological switching costs. • long-term contractual relationships with distributors. • introduce innovative products/services
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  THREAT OF SUBSTITUTE PRODUCTS/SERVICES-High Factors that increase the threat of substitute • A cheaper substitute product/service is available • The psychological switching costs of moving are low. • Substitute product offers the same or superior quality Factors that reduce the threat of substitute. • The switching cost of using the substitute product is high • Customers cannot derive the same utility in terms of quality and performance. How they can tackle it! • emphasize how its offering product/service better than the available substitutes. • convincing reasons by offering a better experience and high value for money. • It can raise switching costs by working on loyalty. • improve the quality, maximise value for money and set strong differentiation basis
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  RIVALRY AMONG EXISTINGFIRMS- Intense Factors that increase the threat of competitor • If market players are strategically diverse and target the same market. • If customers are not loyal with existing brands • Competitors with equal size and offering Factors that reduce the threat of competitor. • limited number of players in the market • There is a clear market leader • The products are highly differentiated & targets different sub-segments • The exit barriers are low, How they can tackle it! • Find needs and expectations of its customers to strengthen the differentiation basis. • It should raise switching costs • Invest in research and development activities to identify new customer segments. • collaborating with competitors can be mutually beneficial.
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  BARGAINING POWER OFSUPPLIERS- low Factors that increase bargaining power of suppliers • the cost to switch from one supplier to other is high. • When suppliers are few and demand for their offered product is high. • Suppliers’ forward integration • not having adequate market knowledge and lacks the price sensitivity. Factors that reduce the bargaining power of suppliers. • Suppliers are not concentrated • Switching costs are low • Product lacks differentiation • Substitute products are available • highly price sensitive and has adequate market knowledge • There is no threat of forward integration by suppliers. How they can tackle it! • decreasing the dependency on one or a few suppliers. • Developing the long-term contractual relationships with suppliers from different regions • alternate ways of producing the product
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  BARGAINING POWER OFBUYERS- high Factors that increase bargaining power of buyer. • concentrated customer base • Buyers=less & supplier= high. • Low switching costs • Consumers’ price sensitivity, high market knowledge and purchasing standardized products Factors that reduce the bargaining power of buyer. • lower customer concentration • customers’ inability to integrate backwards, low price sensitivity, lower market knowledge. • high switching costs How they can tackle it! • increasing and diversifying their customer base. • Marketing and promotional strategies • Building loyalty by embedding innovation and offering excellent customer experience
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  Q2. Conduct aSWOT analysis for Ajanta Packaging based on the details in the case?
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  SWOT FOR AJANTAPACKAGING • STRENGTHS • It is regarded as the primary glass supplier. • Excellent distribution network. • Able to offer just-in time supply to customers via marketing offices. • Quality-focused, customized, and time-bound packaging. • Loyal customers (90% order is from repeated customers). • Good products and professional expertise with wide range of products. • WEAKNESSES • 90% of business from Glass-bottles (i.e. Active inertia). • Rising operating expense. • Loosing profits because of price sensitivity
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  SWOT FOR AJANTAPACKAGING • OPPORTUNITIES • Packaging industry has estimated growth of about 3.1% annually. India’s industry has grown to 15% over the period of time. • Growing urbanization and middle-class and their changing pattern. • Increased pattern of flexible packaging usage. • THREATS • Product substitutes for glass, such as PET • Growing PET-bottle market is effectively shrinking the glass-bottle market • Increased inflation has caused the raw material cost increased • Reduction on imported spirits and wine. • Major industries are shifting to PET-bottles
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  Q3. What willyou advice Deepankar about his dilemma?
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  DEEPANKAR’S DILEMMA • Glass-bottlepackaging had become saturated. • Low ability to evolve with market trends. • Customer’s shifting to PET or other substitutes. • Big impact on Ajanta's future. • Ajanta highly depended on glass- bottle sales. ADVICE • 1 • 2 • 3 • 4
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  THANKYOU EVERYONE!