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KCPL Case Study Solution

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Summary Report
Situation analysis: KCPL is facing a tough competition with organized as well as unorganized biscuit industry. This is causing sales decline for the company because they are not able to remain competitive in the market because other players have benefit of lower price because of their efficient production and quality processes also their economies of scale.
Statement of the Problem: How KCPL can maintain its stronghold in the market and remain competitive with other companies in biscuits industry and expand its operations in other regions?
Options:
1. Do not accept the offer of APL. Continue with Pearson. Devise a new production and marketing strategy.
2. Accept the offer of APL for a limited time. Continue with Pearson. Focus …show more content…

This happened because of KCPL could not been able to increase their price also other competitors due to their large economic scale production able to offer products at lower prices. So KCPL should contract to produce glucose biscuits for Pearson and APL for coming three years. This way they can be able to utilize their extra capacity and in the process they would be able to learn new production and quality control processes that they can apply in future for their own benefit. Family prestige will remain intact because they are in a contract for 3 years only. Once they are able to learn efficient processes it will help them in maintaining the brand image and with reduced cost of production they can be competitive in market. To install new machinery KCPL should take bank loan worth 25 lakhs in order to reduce production cost and minimize waste and improve productivity and …show more content…

This happened because of KCPL could not been able to increase their price also other competitors due to their large economic scale production able to offer products at lower prices. So KCPL should contract to produce glucose biscuits for Pearson and APL for coming three years. This way they can be able to utilize their extra capacity and in the process they would be able to learn new production and quality control processes that they can apply in future for their own benefit. Family prestige will remain intact because they are in a contract for 3 years only. Once they are able to learn efficient processes it will help them in maintaining the brand image and with reduced cost of production they can be competitive in

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