Game theoretic analysis: Dabur vs Patanjali

Abstract

The work we did was primarily to write a case study on a recent development in the Indian FMCG Industry, with Patanjali, one of the latest entrants having severely disrupted the industry. One of the companies that is (is predicted to be) most affected is Dabur, the world’s largest Ayurvedic company. Hence, we chose Dabur as the firm from whose perspective we would be analyzing the problem. The case study presents an overview of the Dabur, how it grew on to become a billion dollar brand and the world’s largest Ayurvedic Company. Then we present the entry strategy of Patanjali, and an overview as to the current standings of the firm, and how it has quickly grown to become this Rs. 5000 cr company in just a span of 5 years. The motivation of writing this case is that we present the full side of the story how things unfolded for Dabur in various segments due to Patanjali’s entry and aggressive growth strategy, such that students should analyze the threat levels and what can be a potential optimal strategy for Dabur and Patanjali in the immediate future. Being able to analyze the above using Game Theory concepts is another motivation for this. Apart from the case study, we are also submitting a Teaching Note for instructors as to what could be a possible way to steer the discussion in class. We wish to thank our project guide, Ms. Manaswini Bhalla for guiding us right through the course of these 3 months, and the regular discussions that steered us in a new direction. Additionally doing the CCS Project under her also enabled us to learn a lot of new concepts in Game Theory primarily revolving around the extensive form of games and how to map them for a better understanding of the case presented.