You are the Chairman of a French FMCG company in India by the name of
“FrenchShine”. You are operating in the “Soaps & Detergents” category & are facing
tough rivals like HUL, Nirma & P&G. You have been operating in India since 2016.
During 2020, there has been a steady decline in your revenues & profitability. Your
market share has also fallen from 6% to 2.5% during 2020. Your competitors are eating
into your market share slowly & steadily during Covid-19 pandemic times.
In your opinion, would it be considered appropriate to pursue a Strategic Alliance or a JV Strategy or should “FrenchShine” go it alone in India? State your response with
appropriate justifications & reasons. What would be the advantages & disadvantages of such a strategy?
Answers
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Answer:
Umm I have to read that so it's take a while.
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Explanation:
The decision of going in for a JV or competing alone depends on the analysis and future strategy of the company in India. Like if the sales and market share have fallen down because of higher prices, lesser product range then then company might think about changing their production and sales parameters and not going for JV as JV would hide their identity in India as well long term profits.
But if the company feels that their competitors are in better shape from many aspects, then JV is advisable to maintain some market share in the company rather slowly falling out
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