Abstract:
Abstract
The Indian chemical sector is growing at a steady pace of 8 per cent annually. Amidst this growth, an MSME company in the industrial town of Ankleshwar, Gujarat – Vinita Chemical Pvt. Ltd. (VCPL), faces a dilemma about the firm's future strategy. The founder and chairman of VCPL, Mr Patel, has to decide whether to continue following market penetration strategy or diversify for quicker growth. VCPL has robust R&D department and a niche position in the market. However, there one chemical and its derivatives can be used in multiple industries. Amidst growing competition from Chinese manufacturers, Mr Patel has to decide which chemicals to enter on the basis of growth of the user industry for such chemicals.
Keywords – business strategy; chemicals; pharmaceutical industry; emerging economies; marketing; international business; diversification; incremental growth.
