Value proposition Market segment Value chain structure Revenue generation & margins Position in value network Competitive strategy
             Nirma A low cost branded detergent offering high value for money People who want to wash clothes Raw materials from local suppliers.All non-core functions were contracted. Minimum overhead costs.Low cost of labor.Cheaper polythene packaging. Low margin. High volume. A branded detergent competing against all (un)branded soaps and detergents. Cost Focus
             HLL High quality branded safe detergent. People who are willing to pay a premium for the higher quality High tech plant.Multi layered distribution network. Higher cost of labour.Higher packaging cost. Higher margin. A branded product, which faces competition from quality detergent producers. Differentiation
             Elements of competitive strategy: Nirma
             Defining business arena and competitive terrain:
             HLL was in the business of selling high quality branded detergents to middle and high income group customers who wanted quality and were willing to pay premium for it. HLL served India's small elite who could afford to buy MNC products. Nirma Ltd., began offering detergent products for poor consumers, mostly in rural areas. In fact, Nirma created a new business system that included a new product formulation, low-cost manufacturing process, wide distribution network, special packaging for daily purchasing, and value pricing. HLL initially dismissed Nirma's strategy. However, as Nirma grew rapidly, HLL could see its local competitor was winning in a market it had disregarded. Ultimately, HLL saw its vulnerability
             HLL also changed the cost structure of its detergent business so it could introduce Wheel at a low price point. It changed its cost structure so that it could afford to come up with a lower priced product which would still be better than Nirma.
             Why was Nirma able to give HLL a run for money?
             HLL faced stiff competition from Nirma beca...