Indraprastha Cold Storage Harvard Case Solution & Analysis

Describe the strategic framework/approach that you would use to analyze this case and explain why you chose it.

            The framework that is used to support is Porter’s value chain analysis. These are the activities that give the competitive advantage to the company in the industry in which it is operating. The reason behind the step to have an advanced and high capacity cold storage is to get the competitive advantage in the industry. Along with the competitive advantage, the cost leadership strategy also applies that is used to save the cost with heavy storage capacity, the reason behind such step is variable to save cost and allocated fixed cost to generate higher profits through cost leadership. The detailed analysis is given below.

Strategic Framework:

            According to the Porter’s value chain analysis, there are two type activities; primary activities and secondary activities. The primary activities are directly linked to the products or services, these are the core activities that are required to run the business and survive in the market. Secondary activities are although not directly linked to the products, but these activities are necessary to support the primary activities.

Primary activities:

            These activities are followed by the organization to add value to the products and services that are offered by the organization.

Inbound logistics:

            Indra Prastha Cold Storage Limited (IPCSL) is offering storage for fruits and dry fruits of external parties for some price that is the service cost to provide the storage capacity. It is used to receive fruit from its customers to store the goods in general deep freezer and gas controlled storage according to the customer requirements. Currently, it has the storage capacity of 2500 metric tons (MT) but the new advance system can store up to 5000 MT and the new system is more efficient and effective for the storage capacity and quality. The quality of services enhances as the new system can be enhanced because of good storage and less chances of the perishability of the products. In Gas controlled storage the apple can be stored for more than 8 months and the benefit can flow because the customers can store their goods in the storage of IPCSL to get the gain of the off season times. The off season can come within 6 months after the peak season, therefore the apples and other fruits can be stored to generate higher gains. The new and advanced system can increase the processing efficiency of the company; therefore the strategy is favored to the company.

Indraprastha Cold Storage Case Solution

1. Operations:

            The operations of the company are to take the goods from the customer and store the goods for the period that is specified by the customer. The goods are delivered from many other cities because of the lower costs in Delhi market for storage of fruits as compared to Nagpur and Mumbai (Maharashtra province). Moreover, it is the responsibility of IPCSL to store the goods at the temperature which is required by the goods for a specified period of time for storage. The first priority for the company must be that the goods must be delivered with the same quality as those provided by the customer at the time of storage. The goods must be reviewed after a short interval to ensure the quality of the products and the goods must not perish even 1%.

            The company and other cold storage companies offer general cold storage for the customer as for the storage of goods is up to 1 month for apple because the general cold storage can store the goods for up to one month and the charges are less than gas storage. Many customers like to have gas storage that is quality conscious. The delivery of fine quality products is the main requirement of its customers because low quality fruits are sold at a lower price.

2.5 Outbound logistics:

            The outbound logistics is about the finished product. In this case, the finished product is the delivery of the goods those were supplied by the customer during the period of storage. However, the finished products are the services of the company. The services given to the customers are above their expectation that can build market reputation. The delivery of the products can be at any time specified by the customer; in most of the cases delivery takes place in a longer period because market suppliers of fruit want to generate extra profits by selling the products in the off season. In India, 95% of the fruits are consumed by the end customers and only 5% of the fruits are used as an intermediary product for the processing purpose. The storage is necessary because the end user of the fruits requires to have fresh fruits therefore the storage quality is necessary. This new cooling system can enhance the efficiency to deliver the right quality products, therefore the market share and customer satisfaction can increase..............

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