SGVS Sustainable Business Strategy Harvard Case Solution & Analysis


The case illustrates the marketing strategies and the business expansion strategies of Surbhi Gramodyog Vikas Sansthan (SGVS), a producer, supplier and manufacturer of herbal cosmetics which includes soaps, shampoos, hand and foot scrubs and other beauty products with no chemicals and side effects. SGVS was initiated by S.P. Aggarwal, who after completing the diploma started selling pure honey under the label of Khadi to country side. Later he initiated the herbal cosmetic business under the Khadi umbrella to expand the horizon of offerings. Over the period of time, due to benefits and promising offering of the SGVS products, the demand increased enormously, making Aggarwal to drop many of the orders due to full capacity utilization of the plant. Though over the period of time SGVS received multiple offers from the investors for investing in the business, but Aggarwal continuedto refuse these offers due to the threat of diluting ownership. Under such circumstances and opportunities to business growth, SGVS has to come up with the strategy which could sustainits position in future.

Keywords:  Herbal Products, Business strategy, Sustainable practice, Long-term planning

SGVS Sustainable Business Strategy Harvard Case Solution & Analysis











What factors facilitated the establishment and growth of SGVS while it operated from Kashipur in Uttarakhand, India?

SGVS is a herbal cosmetic producer, supplierandmanufacturer. Thecompanywas founded by S.P.Aggarwal.After completing his diploma Aggarwalstarted producing, manufacturing and supplyinghoney all over the country. However after analyzing the decline and barriers to expand, Aggarwal left the business and started the business of SGVS in 2003.Since, Aggarwal has the priorknowledge of the market with strong supply network buildduringhoneysupply, it capitalized the relationshipwhich helped SGVS to grow in the Kashipur.Along with this, thecompany from its inception joined Khadi, the local micro body for business.The alliance with Khadi allowed the company to receive the exposure to the international market and the ease of supply of products in different areas.

In addition, since Kashipur is famous for its biodiversity and handmade herbs, SGVS incorporated the comparative advantage of theregion into its comparativeadvantage.It developed the hand-made cosmetics with no chemicalsandpreservatives. Also, the association with the Khadi allowedthe company toreceive the attention of the government and hence in returnreceived the award and benefits to export the products internationally using theresources of Air-India. Lastly, the factor whichfacilitated the growth of SGVS, was its business strategywhich focused on offering quality to the market and not quantity.Aggarwal always prioritized quality over quantity, which not only developed the competitive advantage of the company but also created a surge of demand for SGVS products.


Analyze the case using the 4P framework.

The analysis of the SGVS product is discussed under the 4Ps framework


SGVS produces the herbal products that are rich in natural content. Thecompany manufactures the products through specialized processeswhichdoesn’t includes mechanical supportthus crafts the products by manual methods. Also, the herbal products and cosmetics produced in the company are developed only by few of the employees to ensure the uniformity of the quality and composition of the formula.In addition, the product offered in the market is of high quality which makes it a littleexpensive...........

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