Answer to Question #191815 in Management for Gopi Karthick

Question

You are the Chairman of a French FMCG company in India by the name of “FrenchShine”. You are operating in the “Soaps & Detergents” category & are facing tough rivals like HUL, Nirma & P&G. You have been operating in India since 2016. During 2020, there has been a steady decline in your revenues & profitability. Your market share has also fallen from 6% to 2.5% during 2020. Your competitors are eating into your market share slowly & steadily during Covid-19 pandemic times. 

A. What turnaround strategies can you suggest to arrest the decline of revenues & profitability of your company?

Answer 1

There exist four types of recovery strategies that can be employed; (i) Strategies of Cost Efficiency, (ii) Strategies of Asset Retrenchment, (iii) Leadership Change, and (iv) Focusing on the organization's core activities.