To Expand or to Diversify: The Dilemma of Grihasthi Udyog

Abstract

Grihasthi Udyog is a case which describes the various strategic challenges and dilemmas faced by an entrepreneur in order to expand its target markets beyond its present reach. His concerns were relating to the development of a sound long-term strategy to position ‘Grihasthi’ as a national brand and thus launching growth initiatives to counter competition on the national platform. The key question was whether to aggressively reinforce Grihasthi’s expansion plan and further expand its franchisee network or pursue alternative business opportunities woven around its strengths and competencies. It had further choices like diversifying into related product categories for which better product consistency could be achieved with superior economies of scale.