dabur lTd
docx
keyboard_arrow_up
School
Conestoga College *
*We aren’t endorsed by this school
Course
9603
Subject
Medicine
Date
Dec 6, 2023
Type
docx
Pages
9
Uploaded by SuperNeutron11465
1
Introduction
Dabur Ltd is a well-known Indian multinational consumer goods firm that specializes in Ayurvedic
medicine and natural consumer items. S. K. Burman founded the firm, which has its headquarters in
Ghaziabad, and it has grown to become one of India's largest and most regarded fast-moving consumer
goods (FMCG) companies. Dabur Ltd Known for its natural healthcare and personal care products, Dabur
Ltd. is a well-known multinational business (MNE) in the consumer goods sector. Dabur has added a
variety of consumer goods, such as food items, personal care products, and health supplements, to its
product line throughout time. Throughout its development, the company's dedication to Ayurveda and
natural treatment has remained constant
Scope of operation:
Dabur has business units such as Health care, Hair care, Skin care, Oral care, Home
care and Food
Mission Statement
Dabur's aim is to uncover and improve human potential through unwavering innovation and excellence
in natural healthcare and wellness products. We seek to inspire consumers to live healthier, happier lives
via our trusted goods, sustainable practices, and a deep commitment to quality, integrity, and social
responsibility.
Vision
“Dedicated to the health and well being of every household”
Dabur envisions a world in which every home flourishes in terms of health and well-being. We want to
be the trusted partner in every individual's journey to a healthy life by providing comprehensive
treatment. We strive to contribute to the ongoing vitality of families globally via innovative, natural
healthcare solutions, building a world where well-being is a shared and permanent legacy.
IN NORTH AMERICA, DABUR
Dabur India Limited, with sales over $1 billion and a market valuation of $5 billion, ranks as the fourth
biggest FMCG Company in India. Dabur has been a trusted name in India for over 127 years, thanks to its
tradition of quality and experience.
Dabur's goods are currently sold in more than 60 countries worldwide and have significant market share
in international markets. Its trademarks are quite well-known in the US, Europe, Russia, and the Middle
East, Africa, and SAARC nations. Over 30% of Dabur's overall revenue comes from sales outside of the
country.
2
When Dabur first entered the US market in 2005, it began promoting its line of consumer packaged
goods, which have since gained enormous popularity among Americans of Indian descent as well.
When Dabur first entered the US market in 2005, it began promoting its line of consumer packaged
goods, which have quickly gained a lot of popularity among the local population and the Indian Diaspora.
Key consumer product categories include hair care, skin care, oral care, massage oils, foods, and
supplements are where Dabur now operates in North America.
In 2010, over five years after entering the US market, Dabur acquired its first foreign business when it
bought Namaste Laboratories LLC, a well-known ethnic hair care firm with operations in the US, Europe,
and Africa. Dabur entered the rapidly expanding $1.5 billion ethnic hair care products market in the
United States when it acquired 100% of Namaste Laboratories LLC and its three subsidiary companies,
Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, LLC, and
Urban Laboratories International, LLC, along with its South African arm.
In addition to helping the business expands its market, the company's foreign trade operations entail
customizing its products to adhere to cultural norms and specific tastes. Dabur fortifies its distribution
networks by alliances and cooperative efforts, guaranteeing effective delivery and adherence to global
norms. Dabur is a major participant in the global consumer products industry, taking advantage of the
growing demand for natural and holistic healthcare solutions thanks to its dedication to market
adaptation and well-managed worldwide supply chain.
Over the past 125 years, the tiny business has expanded enormously. With yearly profits of Rs 8,700
crore, Dabur currently holds a market share of over Rs 80,000 crore. Their primary product categories
include packaged foods, skin care, hair care, dental care, and health care. After becoming a public limited
business in 1996, Dabur rose to the top in just 4 years, generating Rs 1,000 crore in revenue. To enhance
administration and operations, three separate divisions were formed: Dabur Ayurvedic Specialties,
Family Products, and Goods for Health Care.
Dabur's products are widely accessible worldwide, being sold in over 100 nations. Currently, Dabur's
overseas income makes up approximately 27% of its total turnover.
History and Review
Background:
It all started in 1884 when Dr. S. K Burman started making health care products in Calcutta, after noticing
a growing popularity for the products he decided to expand by manufacturing the plants for mass
productions of formulations in 1896. During the early 1900’s, Dabur entered the area of Ayurvedic
medicines. By 1919, it was able to establish research laboratories expanding further during the following
year with new manufacturing units to the north east. In 1936, Dabur finally becomes a full-fledged
company “Dabur India (Dr. S. K. Burman) Pvt. Ltd.”.By 1972 Dabur shifted to Delhi. When it reached 1979
it was able to establish one of the largest and best equipped factories Sahibabad, factory of Daburand a
3
research and development center(DRDC). In 1986, Dabur becomes a Public Limited Company after
merging with Vidogum Limited. Furthermore, when it reached 1992 it developed a Joint venture with
Agrolimen of Spain. After that, it entered health care for cancer treatment by 1993. The following year,
Dabur raised its first public issue. During 1995, Extending its global partnerships, Dabur enters into a
Joint Venture (JV) with Osem of Israel for food and Bongrain of France for Cheese & other dairy products.
Moreover, in 1996, Dabur established 3 separate divisions Health Care products Division, Family Product
Division & Dabur Ayurvedic Specialties Limited. During the next year, Dabur entered the food market. By
1998, it hired professionals to manage the company. In 2000, Dabur became a large corporate business.
By 2005, as a part of their growth strategy, Dabur emerged into oral care and household care products,
also announcing the bonus share to their shareholders. The next year, Dabur India crosses the $2 billion
mark in market Capitalization. In 2008, Dabur India acquires Fem Care Parma, the leading player in the
women skin care market. During the following year, Dabur Red Paste joins 'Billion Rupee Brand' club,
croosing a billion. By 2010, Dabur makes its first overseas Acquisition by buying a leading personal care
products company in Turkey “Hobi Kozmetik Group”. When it reached 2011, Dabur enters professional
skin care mark by Oxylife. By 2013, Dabur crossed the $5-Billion mark. Lastly, in 2015 and 2016 Real,
Vatika and Amla experienced great success.
Key milestones
In the early years, Dabur gained recognition for its Ayurvedic formulations, such as Dabur
Chyawanprash, a popular health supplement.
Dabur ventured into various consumer product categories, including oral care, hair care, and
skincare.
The company has pursued both organic growth and strategic acquisitions to diversify its offerings
and strengthen its market position.
Review
Dabur Ltd., a prominent consumer goods company in India, has made a name for itself by prioritizing
natural and Ayurvedic items. The business enjoys a good reputation in the industry because to its
dedication to quality and innovation. Dabur's products are popular among customers looking for natural
healthcare solutions because of their efficacy and adherence to Ayurvedic principles.
Dabur has made significant global strides, now operating in more than 100 nations. The company's wide
range of products and strategic focus on satisfying the needs of foreign customers interested in Ayurveda
and holistic well-being has helped it achieve a worldwide audience.
Dabur, like every business, must contend with difficulties in a cutthroat industry. Market dynamics and
consumer tastes change over time, necessitating constant innovation and adaptation. Furthermore,
since my previous update, there could have been changes to the market and the company's performance
that aren't shown in this historical summary.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
4
Check out the most recent financial reports, news articles, and customer reviews that are currently
accessible for the most precise and up-to-date information, including recent developments and reviews.
VRIO Analysis
In a broader sense, the VRIO framework is part of a company's much larger strategic plan.
Any company's basic strategy process starts with a vision statement and continues with
Objectives, internal and external analysis, strategic decisions (both business and corporate),
And strategic implementation. The company hopes that this procedure will provide them a
Competitive edge in the market they operate in. VRIO is part of the internal analysis stage of
These procedures, but it is also utilized as a framework for analyzing a firm's resources and
Skills, regardless of which phase of the strategic model it belongs to. VRIO stands for the four
Questions you should ask about a resource or capacity to identify its competitive potential:
Value, Rarity, Imitability (Ease/Difficulty to Imitate), and Organization (ability to exploit the
resource or capability).
Value
Brand Image in Social Responsibility: Dabur's CSR efforts are a great asset that help set the company
apart from the competition.
Brand Recognition: In the highly competitive market, Dabur's well-known and highly recognized brand
offers a substantial amount of value.
Relationship with Suppliers: The Company’s value is enhanced by its effective distribution system and
solid supplier relationships.
Rare
Global Presence: Dabur's worldwide reach is an uncommon asset that has helped it grow its customer
base and achieve recognition on a global scale.
Problem-Solving Skills: Promoting a problem-solving culture is a unique skill that boosts competitiveness
and creativity.
Flexibility: Dabur's capacity to adjust to various markets and cultures is an uncommon asset that boosts
its international reach.
Inimitable:
Good Product Offering: Dabur's steady production of goods of a high caliber makes it hard for rivals to
copy, which enhances brand attractiveness.
Store Location and Placement: Well-planned store locations increase exposure and make it difficult for
rivals to open similar locations.
Marketing Communications: Dabur has a long-standing competitive edge thanks to its unique and smart
use of marketing communications.
5
Non-Substitutable/Organization:
Financial Stability: Dabur's significant financial stability underpins its strategic plans and anticipated
growth.
Dabur's cutting-edge technology integration makes it possible for the company to operate effectively on
a worldwide scale and is an irreplaceable resource.
Organizational Culture: Growth and personal development are facilitated by an inventive and
encouraging culture inside the company that cannot be replaced.
Official Establishments:
Legal and Administrative Structure:
Role: Dabur's operational framework is provided by the legislative and regulatory framework. It
guarantees adherence to legal requirements for business practises, product quality, and labelling.
Problems: Getting used to varied regulatory frameworks in several nations might be difficult. Continual
observation and adaptation are required to conform to changing legal requirements.
6
Global Standards and Trade Agreements:
Role: Dabur's international activities are impacted by international trade agreements and norms, which
can help or impede market access depending on compliance.
Challenges: Handling intricate commercial agreements and adhering to international standards
necessitates strict adherence and ongoing watchfulness on changes in trade policy.
Rights to Intellectual Property:
Role: Dabur relies heavily on intellectual property protection to preserve its exclusive formulas,
trademarks, and inventions.
Difficulties: It can be difficult to enforce intellectual property rights, particularly in markets with loose
laws. Unauthorized usage and counterfeiting are enduring dangers.
Informal institutions
Social and Cultural Norms:
Role: Market acceptability and brand trust depend heavily on an understanding of and adherence to
cultural and social standards. It is imperative that items be modified to conform to regional tastes.
Challenges: Localizing products can be difficult in many cultural contexts. Customer perception may be
impacted by misunderstandings or misinterpretations.
Corporate Social Responsibility (CSR) and Business Ethics:
Role: Dabur's reputation is improved by its dedication to CSR and ethical business practices, which in
turn encourages customer loyalty and trust.
Difficulties: It might be difficult to strike a balance between ethical and financial concerns. To prevent
skepticism, open communication about CSR projects is crucial.
Solutions
Legal and Regulatory
Build a Sturdy Compliance Management System as a Solution
Create a thorough regulatory compliance management system to keep track of changes to legislative
frameworks throughout the world.
Update internal rules and processes on a regular basis to comply with new legislation.
Invest in legal knowledge to guarantee risk reduction and proactive compliance.
Social and Cultural Norms:
Solution: Localization techniques and cultural sensitivity training
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
7
Provide training courses on cultural sensitivity to staff members who work in other countries.
Perform in-depth market study to comprehend regional inclinations and cultural quirks.
Adapt product and marketing techniques to each market's unique cultural expectations.
Protection of Intellectual Property:
Solution: Intensify IP Enforcement Protocols
To better protect intellectual property rights, strengthen cooperation with local government agencies.
Invest in cutting-edge product packaging anti-counterfeiting technology.
Encourage awareness efforts and educate customers about the dangers of purchasing counterfeit goods.
4. International Standards and Trade Agreements:
Constant observation and strategic partnerships are the answer.
Organize a specialized group to keep an eye on modifications to international trade agreements and
standards.
To keep informed, establish strategic connections with trade associations and industry associations.
Take the initiative to advocate for favorable modifications to rules and regulations.
Adapting Culturally in Supply Chain Partnerships:
Cooperation and ethical supply chain management are the answers.
Establish guidelines for ethical sourcing and carry out frequent supplier and distributor audits.
Encourage suppliers to work together to uphold ethical standards and common values.
Provide suppliers with training sessions covering Dabur's ethical standards and sustainability objectives.
6. CSR and Ethical Business Practices:
Answer: Open Communication and Involvement of Stakeholders
Increase openness while distributing information about CSR projects via different media.
Interact with the community to learn about its needs and then direct your CSR activities accordingly.
Report on CSR initiatives on a regular basis in business communications and yearly reports.
Regulatory compliance is a substantial challenge for Dabur Ltd., considering the strict rules in the
consumer products industry, particularly with regard to the production and promotion of Ayurvedic
medicines.
As Dabur grows globally, cultural adaptation presents obstacles that need for a sophisticated grasp of
various customer preferences, cultural practises, and health beliefs.
Dabur has ongoing challenges due to the fierce competition in the consumer products business, which
makes regular innovation necessary to hold onto market share.
8
For Dabur, one challenge is managing an intricate supply chain for Ayurvedic goods that involves
acquiring natural components. This involves maintaining sustainability practises while ensuring a steady
and high-quality supply of raw materials.
It can be difficult to establish and retain a favourable brand image for natural products and Ayurvedic
medicine, especially in regions where these items are not well-known or widely recognised.
Dabur's worldwide activities are susceptible to the effects of economic volatility and currency exchange
rates, which can have an influence on pricing, profitability, and overall financial performance.
Staying competitive in production, distribution, and marketing requires embracing and applying
innovative technology; nevertheless, opposition to technological change may operate as an obstacle.
In markets where environmental consciousness may not be as strong, Dabur's dedication to
sustainability encounters difficulties. This calls for a careful balancing act between sustainable practises,
economic viability, and customer needs.
Dabur's international operations subject it to political risks that might affect the company's operations
and profits, including political instability, changes in government policy, and geopolitical conflicts.
One major obstacle is raising customer knowledge and comprehension of the advantages of Ayurveda
and the special features of Dabur's products, which would need a large marketing and education budget.
In conclusion, Dabur Ltd., an Indian multinational consumer goods firm with a focus on natural consumer
goods and Ayurvedic medicine, has demonstrated incredible ingenuity and tenacity in navigating the
challenges of the global market. With its roots in the idea of using Ayurveda to improve people's lives all
around the world, Dabur has become a major force in the fast-moving consumer goods (FMCG) industry.
The company's mission has accelerated its growth and built a strong global presence because it is
committed to sustainable practises, customer-centric ideals, and cultural awareness. Dabur's income
streams demonstrate the long-lasting attractiveness of its natural and Ayurvedic products, with a
substantial share coming from the consumer care industry. The company's worldwide market venture,
which accounts for a portion of its sales, highlights its flexibility and calculated approach to international
growth.
Dabur, however, must overcome a number of obstacles, such as difficult cultural adaptations, legal
hurdles, and the necessity to negotiate a fiercely competitive market. The intricate supply chain, volatile
markets, and the need to strike a balance between sustainability and profitability all contribute to the
operational complexity of the company.
9
To sum up, the history of Dabur Ltd. bears witness to its dedication to conventional health methods,
creativity, and worldwide significance. Despite ongoing difficulties, the firm is well-positioned for
sustained success in the competitive global consumer products and international commerce market
because to its strategic initiatives, fortitude, and forward-thinking outlook. As Dabur develops further,
with a focus on Ayurveda,
Harvey, M. (2020, April 8). VRIN/VRIO Analysis Of Dabur India. Retrieved from
https://www.essay48.com/case/38086-Dabur-India-VRIN-VRIO-Analysis#google_vignette
Barney, J., & Hesterly, W. (2019). Strategic Management and Competitive Advantage: Concepts Global
Edition. London: Pearson Education Limited.
Evans, V. (2013). Key Strategy Tools: The 80+ Tools for Every Manager to Build a Winning Strategy.
London: Pearson UK.
Gander, J. (2017). Strategic Analysis: A Creative and Cultural Industries Perspective. London: Taylor &
Francis.
"Dabur Ltd Results" (PDF). Dabur. Archived from the original (PDF) on 30 August 2021. Retrieved 2
November 2020.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help