Castrol India Limited: Managing in Challenging Times - Diagnosis
Vikalpa: Journal for Decision Makers, Vol. 30, No. 3, pp. 152-159, July-September 2005
Posted: 7 Aug 2006
CIL began operations in India in 1919 and steadily established a reputation for high quality lubricant products and marketing prowess. It had market capitalization of Rs. 29.54 billion with sales of Rs. 13.57 billion for the calendar year ending 2001. It had gone through three phases during the last one and a half decades: the survival phase prior to 1991, a dramatic growth phase during the period 1991 to 1996, and the supply chain and cost management phase.
CIL has been able to sustain its competitive advantage by developing products that have differentiated offer; managing costs better; building long-term winning relationships with its distributors, dealers, and direct customers; and through innovation. The company's strategy has paid off and it has been able to grow continuously on all performance parameters despite increasing competition and base oil prices. Kshatriya attributes the return of CIL to 'growth path and reviving up to new heights of performance' to 'innovative and winning team spirit of Team Castrol.'
Keywords: Corporate Strategy, Financial Strategy, Balanced Scorecard,
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