Corporate where they grow all ingredients which brings

Corporate level strategy helps organization to create value at lower cost which helps them to differentiate from competitors. Since Patanjali was doing good and generating free cash flow they diversified and entered into the FMCG sector. They started with related diversification and entered into FMCG market and now moving into unrelated diversification by entering into clothing line to increase profit by infusing existing organization capabilities to get advantage of multipoint competition. Patanjali entered into new vertical and launched 7 different varieties of edible oil. Total market share of edible oil industry in India is 1,25,000 crores and growing at rate of 7-8%. There is big supply demand gap in this sector and Patanjali targeting to increase its turnover only from this sector by 20,000 crores in next three years (Narayanan, 2018).

One of other strategy which makes them apart from some of competitors like Parachute who is famous hair oil brand solely depends on outsourcing from company in Alleppy Kerala and package it. While Patanjali has its own R&D centre and farm where they grow all ingredients which brings more customer trust, helps them to not become hollow organization and gives long term competitive advantage. Patanjali strategically outsource some of its work for example for biscuit, ghee etc. but kept it as secret (Mitra, 2016). Now to expand its business recently company acquired RH agro Overseas  rice mill for 10.5 million dollar for its packaged rice product manufacturing (Ranjani, 2016).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Patanjali strategy is to make Patanjali more than a Ayurvedic (herbal) company. It positions itself to contribute to make people healthy, provide competitive price and sharing profit with charity. The corporate strategy of Patanjali is based upon needs and opportunities. Patanjali before even opening the company built its brand name with the help of Yoga and Ayurvedic medicine of Divya trust. With push from government as Make in India campaign helped Patanjali and they started promoting SWADESHI word and ask people to buy Indian to compete with foreign companies like Unilever and P&G. They organized many events to promote products which are visible any time of day on television. They also employed rural employees by giving them training and invited bloggers, international media and news writer for factory visit to get publicity. Patanjali is at keystone of its strategy because brand ambassador Ramdev is very famous it helps them to build critical mass from starting itself. Patanjali capitalize on its brand and promise quality, value. P&G is a very big company having lots of products but very few people knows what P&G is but Patanjali is very well known and people recognise instantly. For success Patanjali uses DOMINANT Corporate-Level strategy.