Mr. Gupta has a large scale set up of export of handicrafts in Moradabad. The business was started by his grandfather and it is now third generation running the business.

Over years of business, they turned themselves around and became highly successful. Their factories had grown bigger and better, employing thousands of workers and huge investments were made to accommodate the increasing demands of discerning overseas customers.

They became a success story that other business owners can dream of.

But in last few years, the volumes and prices have come down drastically due to change of trend and intense competition and most of their loyal customers started sourcing from other suppliers.

All of sudden, the business was looking very vulnerable and Mr. Gupta could see that the business was facing certain challenges of survival which may lead to closure in near future unless he comes up with a strategy.

So what strategic options Mr. Gupta has??

What would you do, if you were in such a space??

During my consulting work, I have come across such situations all the time. I have met entrepreneurs running business at 2% annual ROI, which is far lower than even the bank interest.

The entrepreneurs are so attached that they don’t mind running the business at marginal profits or even at loss.

They live in hope. They don’t realize that once a cash cow has now become a sweatshop.

There are 6 strategies that Mr. Gupta can leverage and bounce back.

I will share 2 of them here and remaining 4 will be shared in upcoming series of this article.

1.     Self Introspection

Surprisingly, the current situation has a lot to do with Mr. Gupta himself and a lot less with market.

What is stopping him here?

  •  Living in hope
  • Not willing to accept the reality / defeat/ completion of product life cycle
  • Disinclination to invest in research & innovation
  • Overlooking competition activities
  • Hesitancy to re-invent

2.     Smart Diversification

Mr. Gupta should jump the ship.

This does not mean, he needs to close down and start something new. All it means, he should look for allied and innovative products with higher margins, higher growth rates and most importantly products which can leverage the existing manufacturing, sourcing and distribution capabilities.

Do share your experience in the comments and help others.

Knowledge sharing is a passion for me and if you like my blog, please do share my post, this helps.

See you pretty soon with another important topic that matter to you and your business.

I wish you a successful and better new year 2019!

About the Writer

Raakesh Saraff is the author of upcoming book “Plan Or Perish”

Raakesh Saraff is an entrepreneur by heart and passionate about leveraging big data to extract game changing insights in export import business. Having helped 23,000 clients in last 23 years, his mission is to empower entrepreneurs to rapidly scale up with competitive intelligence. Raakesh is the founder Director of InfodriveIndia.com – world’s third data driven website, offered Business Intelligence Dashboards with extended coverage of 78 countries. Raakesh consulting assignment has created landmark shift in the businesses of his clients.