Why NIRMA Failed?

The company Nirma was started by a farmer’s 24-year-old son and shake the foundation of a 40-year-old company.

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When we see now the market share of Nirma is about 6 % from 60 %. This is because of the reason Market Dynamic Environment.

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When Nirma was started at that time the per capita income was very low but after 2010 we saw a good performance of private sector companies and per capita income started to rise and grow speedily.

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The purchasing power of people in India increased and India was a status-driven society. And as their purchasing power increased they started to avoid cheap products.

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As Nirma was very low in price, this made people question the quality. And this results in fewer sales of Nirma. And Nirma also didn’t make any innovations in their products.

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It leads to the company which was used to lead the market is now asked by no one. Till 2005, the Nirma group was entered into many unrelated markets. This affected their core business.

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