GHCL Limited: Selling the Rekoop Story

GHCL Limited: Selling the Rekoop Story

Competitive Strategies being Used by the Firm

The most essential competitive strategy that GHCL is using is the production of Rekoop, a new line of bedsheets that none of its competitors makes. These bedsheets are made from fiber that is extracted from plastic bottles (Majmudar & Rana, 2019). As noted in the case, GHCL’s Rekoop sheets are unique and the only recycled polyester sheets in the globe. C.K. Prahalad’s core competence theory of strategic management can be used to understand the current case. According to Gökkaya and Ozbag (2015), organizational core competencies, including capabilities and resources, have significance importance since they support a firm’s competitive advantage and performance. Thus, GHCL should focus on its core competencies and draw its strengths from them. In the current case, the use of recycled polyethylene gives the firm a sustainable image, which, in turn, puts it ahead of the competitors.

As a way of maintaining a distant lead in the clothes industry, GHCL has already positioned itself as a global leader in many aspects. As Majmudar and Rana (2019) highlight, the company has created a strong brand name in the areas of traceability, innovation, sustainability, and social responsibility. Even before manufacturing Rekoop, the firm was actively involved in a wide range of sustainable activities, such as reducing, causing zero harm, reusing, and recycling. Introduction of Rekoop painted a new image of a company that has a passion for managing a sustainable supply chain. At a time when everyone is feeling the adverse effects of climate change, GHCL’s sustainable production gives it a global recognition ahead of its competitors.

Also, GHCL has not been working alone but collaborates with other companies from various sectors, most of which have a record of continuous profitability. For example, it partners with Reliance Company, one of the most profitable firms in India, and Applied DNA, a popular provider of molecular technologies (Majmudar & Rana, 2019). While Reliance Company provides GHCL with fabrics of various types, Applied DNA helps it in molecular tracking, to ensure that its textile products are not counterfeited. As a result, the firm takes pride in high-quality products whose authenticity is verifiable, winning the hearts of many customers who are always looking for genuine products.

Competitive Strategies Needed to Sustain its Success

Now that GHCL has a strong brand image, it needs to focus on strategies that will increase its visibility and sales. One of such strategies is rigorous marketing. It is possible that the company has quality and sustainable products, but very few people know about them. Through marketing, the firm will effectively engage customers and reinforce its reputation. Additionally, marketing will help in communicating to customers why Rekoop is unique and better than other bedsheets. Consequently, product promotion will not only maintain the company’s relevance but will also lead to increased sales.

Secondly, GHCL needs to assess its external environment regarding the nature of its customers and competitors‘ prices before setting up the new price for Rekoop. Even when a product is good, prices can put off customers. At the moment, GHCL needs to study the pricing strategies of its competitors, for example, Indo Count Industries, Century Textiles, Trident Limited, and Welspun India Limited. After the assessment, the new prices can be set slightly lower than those of the competitors. Consequently, customers will enjoy high-quality textile products at reasonable prices. This pricing strategy will give customers no reason to turn to competitors. Sales will increase, and the company will be able to sustain its success in the future.