Case-Study-Engro.docx

8/18/2019 Case-Study-Engro.docx

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CASE STUDY

PROCESSED AND PACKAGED MILK INDUSTRY IN PAKISTAN

(IN CONTEXT OF ENGRO FOODS)


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COURSE: CONFLICT STRATEGIC MANAGEMENT

CASE STUDY

DR. BELAL AHMAD (7860)

Q! E"#$%#&' &' *+,-#-& '*-*+, &/#,& *1 &' 2/*'' #-

2#3#4' +,$3 ,-%&/5 ,- P#3,-


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Pakistan is the fth largest producer o milk with industry volume comprising

dierent dairy products reached at US$26 billion in urban and rural areas on

the increasing population and domestic local consumption a research report

said!

"arket Si#e %rowth& 'ccording to (etra Pak inde) the consumption o milkin 2**+ was reached at 2,+ billion liters was pro-ected to be reached at

2+2 billion liters in 2*.2! (he total growth o processed and packaged milk

reached at ,+/!

0umber o 1ivals& urrently there are more than 2, dairy processing plants

but 0estle is one o the biggest rivals3competitor or 4ngro!

Scope o ompetitive 1ivalry& 0estle and 4ngro is the biggest rival and both

o these frms are currently competing at 0ational level!

Product 5nnovation& 5n the processed milk industry packaging and skimmed

milk can be consider as the product innovation!

Supply3emand onditions& (o meet up supply conditions backward

integrations is re7uired!

8ertical 5ntegration& 5t will give a positive impact on Supply3emand

conditions and will play a vital role to cut down the cost!

4conomies o Scale& 5t9s important or industry since the processed milk is

processed on large scale to reduce the cost! :irm success depends on howbigger the market share companies captured! 't the initial stage it9s

necessary to have some learning or e)perienced about the process!


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Q: A22$5 &' F,"' F*/' +*'$ *1 *+2'&,&,*- &* #-#$5' &'

*"'/#$$ #&&/#&,"'-' *1 &' 2/*'' #- 2#3#4' +,$3 ,-%&/5

,- P#3,-:


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Q9: #& #/' &' /,"'/ *1 #-4' ,- &' 2/*'' #- 2#3#4'

+,$3 ,-%&/5 *1 P#3,- H*; #/' &'' /,"'/ $,3'$5 &* #hite 1evolution 5t envisions the dairy sector as serving an =engine o

economic growth< or the country and taking the responsibility to drive the

development o the socio?economic landscape o rural Pakistan!

4conomy o scale is so large that rivals frms need to market their products in

many cities to gain enough volume to cut down the cost!

Product 5nnovation is necessary so that buyers get more attract towards the

product in terms o packaging and at some e)tent the thickness o milk!

"arket 5nnovation& (o aware the buyer about the process and the

technologies which are used or processed milk!


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hanges 5n cost is necessary to compete with the rivals cause i the rivals

apply the backward or vertical integration it will aect the cost it will change

the dynamics o the country!

Q=: C/'#&' EFAS 1*/ E-4/* 1**:

E>&'/-#$ F#&*/ A-#$5, S%++#/5 EFAS

E>&'/-#$ S&/#&'4,

F#&*/

>eight 1ating >eighted

Score

omment

s

Opportunities

Social responsibility *!. @ *!@ A?a Proftability *!., A *!6 A?b %rowth rate *!2 A *!+ A?c

emand in domesticand international

markets

*!. A *!A A?d

1elationship with

8ertical "arket

*!*, . *!*, A?e

Threats

Substitute product *!. A *!A A? ompetition rom

Bthers in "arket

*!., A *!6 A?g

Position o Supporting

Crand Products

*!. . *!. A?h

(he >hite 1evolution *!*, @ *!., A?i

T*$ ',4&'

S*/'

. @!A

A?a& 5ntegrated arming and livestock development


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A?b& ontinuous proft increase in dairy and -uices

A?c& airy and -uices making rapid progress 5n the UD( milk market 4ngro

:oods has grown e)ponentially in the past seven years and is now the

market leader! %rowth or the company is now coming rom conversion o

consumers to UD( milk rom the open Enon (etra PackF milk!

A?d& 5ncreasing demand locally and internationally

A?e& Partnering with (etra Pak Pakistan and strong relationship with local

armers

A?& (he threat o substitute is always there in the ood industry! ompanies

usually ocus on niche area in which they have competitive advantage! 5n

ood industry there is more competition in the ood industry so threat o

substitute in ood industry is more!

A?g& 0umerous big brands competing in the same market

A?h& Supporting brand products in the marketing mi) have dwindling revenue

A?i& %overnment initiative to increase package milk demand locally and

internationally


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S*%/':

www!tetrapack!com

www!engrooods!com
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