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General management/Strategy: Problems with debt recovery industry in India Strategic positioning and core competencies: expansion plans.

The case can be used on an MBA program for a course in strategic management. It can be used to understand the concept of strategic positioning. It will give the students an opportunity to critically evaluate a firm’s strategic positioning in the competitive environment, enable them to understand how to create and capture superior value by differentiating as compared with other players in an industry and address expansion and growth strategies.

The case represents the success story of “Adhikrut Jabti evam vasuli”, a debt recovery agency that dared to use the unconventional strategy of employing women as recovery agents, against the stereotyped muscle-flexing male agents. Continuous focus on improving the processes and systems backed by an authoritative yet tactful approach of persuasion and patience has brought this recovery agency accolades and growth. But now Parag Shah the Managing Director is planning to expand its horizons and wonders whether he should go ahead opening up more branch offices across the country or whether he should convert his recovery firm into an Asset reconstruction company.

The case reinforces the importance of “Strategic positioning” of a firm due to well-planned differentiation in services. The case also addresses concepts of leadership, standardization, people skills and relationship management.

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CSS 11: Strategy.