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This case should facilitate participants to analyze the influence of internal and external factors on a growing company in the dairy, agro and food industries; analyze the drivers of a company’s competitive advantage; evaluate the relevance of the company in the new product-markets; and propose growth strategies for the expansion of the business beyond the core markets.

Gyan Dairy began its journey in 2007 and operated in the business-to-business segment by supplying skimmed milk powder and white butter to other dairy players. Then, the company launched its packaged milk brand in Lucknow – the capital city of Uttar Pradesh – one of the largest provinces in India. By the end of 2020, Gyan was the leading private dairy brand in Uttar Pradesh. The company’s vision was to become one of the top dairy brands in India by 2035. While deliberating on the growth choice, the company’s senior management debated whether to strengthen the company’s position in the existing markets or expand operations in adjacent locations. Increasing market share would have led to price wars or advertising costs. Diversifying into product categories involved the risk of product–market misfit and new product development and marketing costs. However, pursuing these options would further strengthen the company’s position in the North Indian market. Expanding into new locations would help establish the company’s presence across different parts of India. However, both these options were replete with various challenges. Expanding into new markets needed one of the promoters of the Gyan Diary, to relocate, build new markets and institutional connections and build a completely new localized economy of scale, which would create a financial burden on existing operations until the new operation was self-sustainable. However, in this journey, they would find and build a model to help expand their operations in other countries as well. Ideally, the company could pursue all the options, but this was not possible due to constrained resources.

This case allows students to discuss and evaluate alternate growth options associated with operationalizing the growth strategy choices in perishable branded food categories beyond existing markets and products. In addition, it also helps discuss how to arrive at such decisions after analyzing the focal firm’s market opportunities and existing capabilities. This case is helpful for the “growth strategy” module in the strategic management core course in a general MBA program and in specialized MBA programs in food and agri-business management.

This case is suitable for graduate-level courses on strategic management courses in general management programs and agri-business management programs. In a strategic management course, the case will help cover topics such as analysis of the internal and external environment of the firm and growth and expansion strategies. This case will help teach how to build competitive advantage in dairy and agro-food industries and the strategic analysis needed while pursuing growth decisions. Emerging markets, including India, are the growth markets for leading multinational companies in the food and dairy industries.

Teaching notes are available for educators only.

CSS 11: Strategy.