Amul Case Study

284 Words2 Pages
Amul Business Model: Amul follows a cooperative system, a three tire structure that comprised village cooperative societies, district level dairy unions and state level federations. The main aim of the model is providing value for money and each farmer should get benefited from the earnings after production. Possible Solution: As the quantity of milk is continuously growing at the collection unit and exceeding the production capacity Amul is facing Synchronisation problem. In order to make use of surplus quantity AMUL should diversify and use Miles and Snow’s PROSPECTOR strategy. Where a prospector strategy states that a firm should be highly innovative and seek out new markets and new opportunities by diversifying with different products. Amul can use the surplus quantity in producing new products like ICE CREAMS, BUTTER, Cheese products, Fresh Milk (which can stay for longer duration), and Desserts etc.. Large scale vending, Multi-mode of outlets like shops in Housing societies, supermarkets, direct sales to Hotels/restaurants/sweet shops etc. Managing Integrated supply chain through road, rail transportation. Further developments to ensure alternative usage of milk to produce milk products. AMUL can also use new marketing techniques in making available of the product in every corner of a state by partnering up with Mother Dairy and other government (NDDB) subsidiaries who are having good chain of network across the country. Before Kurien leaving GCMMF and NDDB with his political influence he should bring new acts that no MNC should involve in the process of production and marketing and diluting the share of the farmers. He also must make sure that each and every farmer should not supply the milk with high uncertainty and not face any synchronisation problem in the
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