Case Analysis of Kota Fibres Free Essay, Term Paper and Book Report
Company & Industry Background
Kota Fibres was founded in 1962 and produces nylon fibers used to weave colorful cloths for making saris, a traditional womens dress of India. Kota developed a strong customer base through its use of new technology, domestic raw materials and responsive service and credit. It has consistently been profitable and sales are expected to grow at an annual rate of 18 percent in 2000. The companys sole production plant is located in Kota, India. Kota Fibres also has two distribution warehouses. Distribution has been an ongoing challenge due to narrow roads in poor repair. The trips between the plant and the distribution warehouses are very slow and accidents are frequent. Ms. Pundir and the 11 members of her extended family hold the entire equity of the firm.
The synthetic textile market is stable and expected to grow at an annual rate of 15 percent based on projected changes in both population and national income. Consumers primarily buy saris to wear during special occasions and festivals. As a result, the demand for saris is seasonal and peak......
Word Count: 1986
Page Count: 7.9 (250 words a page / double spaced)
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