1. Should Dabur build scale first in India before investing in global operations?
In my opinion, yes, Dabur should build up scale first in India and then it should try for its global operations, because although we know that it is among the top ten CPG companies in India by revenue but its net sales figure is only Rs. 13430 million which is near about 10 times less as comparison to top CPG companies like HINDUSTAN LEVER and ITC. So first it should try to increase its revenue figure in domestic country, with implementing new plans and strategies and once it come among top 3 CPG companies, then it should try for its future operations. Other reasons are
a. Although if Dabur is not able to perform good in India where it is well known to everyone which is its domestic market, then what is the chance that it will going to succeed in foreign market. b. Whenever an Indian company announces a domestic expansion through an alliance or acquisition, its stock prices goes up and vice-versa on overseas expansion. c. India’s CPG market is fastest growing in the world. The population is young, dynamic and willing to try new product. d. The Indian CPG market was projected to grow almost threefold by 2015 to $ 33.3 billion. On the basis of above reason we can say that Dabur should first try to earn market share in India and then focus on foreign expansion.
NOTE :- According to Sunday Times of 20 Jan 2013 WIPRO CARE LTD. Had earn 50% of its revenue by foreign market which is only because of focusing on acquisition of companies, so if Dabur in future want to commence its operations its future it should try be on same path as WIPRO has followed.
2. Is company’s template for globalization workable?
According to me, the template for globalization will be workable because a. They are not trying to focus on developed market.
b. They want to put as less cost as they can which minimizes the chances of risk. c. They want to focus on...
Please join StudyMode to read the full document