Cracking down the business model of Asian Paints
The business strategy of Asian Paints has been based on the thought of a series of short-run competitive advantages by adopting measures that raised the worth of doing business for all its competitors. So far, Asian Paints has been using its distribution strength and logistic potency to attain this advantage. Read further to get an insights into the business model of paint giant Asian Paints.
BY DHARMIK MADAAN | 3 mins read
AP has established such associate degree comprehensive network that obtaining progressive advantage out of the distribution network can be terribly troublesome. Consequent logical step for AP to look for to understand competitive advantage would be through either channel management or through occupying mind house. AP ought to plan to increase the window of competitive advantage by using promotion as a tool to feat competitive advantage. A number of the business characteristics can be accustomed to gain insights on the competitive scope of Asian Paints.
The company follows a three-pronged growth strategy – market growth, acquisition and outsourcing.
By taking the higher than steps, the business leader among the ornamental paints section (market share: 35-37 per cent), and variety 2 among the economic section (20 per cent share), plans to emerge frontrunners within the paint sector.
Asian Paints’ focus is on smaller cities and cities, even villages, wherever walls, interiors and exteriors are largely lime-coated – and among the approaching years most of them would be paint-coated, making them a heavy potential marketplace for paint corporations. The company is aiming to make an investment of around Rs.100 crore to expand its color World, by adding another 2,000 systems as the demand for acrylic paints in smaller cities is increasing and wood polish is another space where the main focus is presently on. As a part of market growth and brand-building plans, the company has a consumer services division. A prospective consumer can call the division’s helpline and explore all suitable paints and even get a quotation to paint his house.
The company intends to reinforce its production by debottlenecking its plant. This will be expected to increase production by 8,000 MT once a year. The company is to boot on the lookout for acquisitions – every domestic and overseas.
So far, the trade hasn’t seen any mega mergers as there are solely many [but large] players and also because of low-entry barriers. So, this will be a major modification. Asian Paints, in fact, has a substantial presence abroad, with 10 international joint ventures to its credit.
