AURORA'S PG COLLEGE (MCA)

Autonomous & NAAC ‘A+’ Grade

Ramanthapur, Hyderabad-500013

Department of Management

Optimization of Resource Allocation and Task Allocation with

Project Management Information Systems in
Information Technology Companies

Team Project Report

MASTER OF BUSINESS ADMINSTRATION

[Link]

1325-23-672- 024

Aurora’s PG College (MBA)

Ramanthapur, Hyderabad

2024
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

DECLARATION

I hereby declare that this Team Project Report titled “Porter's Diamond Model: Unraveling
the Secrets of Competitive Advantage by Britannia ” submitted by me to the Department
ofBusiness Management, Aurora’s PG College(MBA), Ramanthapur, Hyderabad, is a
bonafide work undertaken by me and it is not submitted to any other University or Institution
for the award of any degree diploma / certificate or published any time before.

Signature of the Student

AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

ACKNOWLEDGEMENTS

This acknowledgement is a humble attempt to earnestly thank all those who are directly or
indirectly involved with my project and were of immense help to me. First of all, I would like to
express my sincere thanks to the Director of college Dr. M. Madhavi, Vice Principal Dr. Ch.
Satish Kumar and H.O.D of MBA department, Dr. B. Madhu Bala for giving me this
opportunity to carry out the project. I acknowledge with greatest courtesy the efforts taken by Dr.
D. Pavan Kumar, my guide, who took genuine interest in my project and helped me, understand
the basic concepts of the project when necessary.

KOYALAKONDASHASHANK
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

ABSTRACT
This project examines how Britannia Industries Limited can leverage Porter's Diamond Model
and Porter's Five Forces framework to enhance its competitive advantage in the Indian market.
The analysis focuses on identifying Britannia’s strengths, such as strong financial
performance and high consumer preference, as well as its challenges, including market share
and pricing
competitiveness. Using data from industry reports, academic literature, and Britannia’s own
publications, we found that while Britannia is a leading player, it needs to address certain issues
to maintain its edge.

Our findings suggest that Britannia should expand into new markets to reduce dependency on
the Indian market and invest in research and development to innovate and meet evolving
consumer preferences. Improving supply chain efficiency and leveraging technology will ensure
consistent product availability and cost control. Additionally, enhancing brand loyalty through
personalized marketing and boosting its digital presence will help engage a broader customer
base. By focusing on these strategies, Britannia can better navigate the competitive landscape,
capitalize on opportunities, and achieve sustainable growth.

These insights are valuable for students, industry professionals, Britannia, and policymakers,
providing a practical understanding of business strategy and competitive dynamics in the food
and beverage industry.
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

CHAPTER 1
1. Introduction

Porter Diamond is a model that emphasizes the competitive advantage of an industry or business
that makes it work better than other competitors in a region or country. Also known as the Porter
Diamond Theory of National Advantage, the model explains why certain industries thrive in
particular nations. Companies use this model to analyze the competitive environment in foreign
markets before entering them.
The model outlines factors that determine the relative strength of entities, which drives them to
become better than the rest. Besides some of the attributes that are available and identifiable in
the environment itself, businesses have the liberty to create their own strengths to empower their
presence and become an entity of national importance
Porter Diamond Model discusses factors and traits of a business that make it more successful
than others in a particular region. It enables companies to identify the resources that need to be
developed to enhance their performance compared to the rest of the entities dealing in the same
category of products and services.
Michael Eugene Porter, an American academician and influential thinker on management and
competitiveness, developed the Porter Diamond model. It is an economic model for businesses,
especially multinational organizations planning to expand their operations in different markets.
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

The model lets companies identify the key areas to focus on to capture global markets
effectively. With the help of this theory, the business players can understand the reason for
certain industries being widespread in particular nations. On this basis, they can analyze their
position in the market and thereby implement strategies to compete and excel.
The Porter Diamond theory outlines four main factors that reveal how businesses enjoy a
national advantage in the international markets. These attributes make certain nations become
more competitive than others for specific industries. For example, Germany is well known for its
engineering, while Greece is famous for the tourism services it offers on a global platform.

Background of Britannia Company

History and Evolution:

Britannia Industries Limited, founded in 1892, is one of India's oldest and most respected
food companies. Starting as a small bakery in Kolkata, it has evolved into a major player
in the Indian food industry, known for its innovation and quality. Over the decades,
Britannia has expanded its product offerings from biscuits to a wide range of bakery
products, dairy items, and snacks, making it a household name across India and beyond.
Product Offerings, Market Presence, and Key Achievements:
Britannia’s product portfolio includes a variety of biscuits, bread, cakes, rusk, and dairy
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

products like cheese, butter, milk, and yogurt. Popular brands under Britannia include
Marie Gold, Good Day, Bourbon, Milk Bikis, and Tiger. Britannia has a strong market
presence in India and exports to over 60 countries worldwide. The company has received
numerous awards for its quality products and corporate governance, cementing its
reputation as a leader in the food industry.

1.1 Need for the Project

The project on Porter's Diamond Model and Porter's Five Forces, using Britannia Company as a
case study, serves several important purposes:
1. Understanding Competitive Advantage
Application of Theoretical Concepts: The project allows students to apply theoretical concepts
learned in class to a real-world scenario. By analyzing Britannia using Porter's models, students
gain a practical understanding of how these frameworks are used to assess competitive
advantage. Insights into Industry Dynamics: Understanding the factors that contribute to
Britannia's success provides insights into the broader dynamics of the food and beverage industry
in India. This analysis helps students appreciate the complexities and interdependencies within
an industry.
2. Skill Development
Analytical Skills: The project enhances students' analytical skills by requiring them to assess
various factors influencing Britannia's competitive position. This includes evaluating market
conditions, supply chain dynamics, and consumer behavior.

Teamwork and Collaboration: Working in teams fosters collaboration and communication skills.
Students learn to leverage each other's strengths, manage conflicts, and work towards a common
goal.
Research and Data Analysis: The project develops students' abilities to gather and analyze data
from diverse sources, including academic literature, industry reports, and interviews. This skill is
crucial for making informed business decisions.
3. Strategic Thinking
Identifying Opportunities and Threats: By applying Porter's Five Forces, students identify
potential opportunities and threats in Britannia's competitive environment. This encourages
strategic thinking and the ability to anticipate and respond to market changes.
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

Developing Recommendations: The project requires students to develop strategic

recommendations based on their analysis. This helps students think critically about how
businesses can leverage their strengths and mitigate risks to sustain competitive advantage.

1.2 Objectives of the Project

1. Analyze Britannia’s Competitive Advantage
Application of Porter's Diamond Model: Evaluate how the four determinants—factor conditions,
demand conditions, related and supporting industries, and firm strategy, structure, and rivalry—
contribute to Britannia’s competitive advantage in the Indian market.
Examine the Role of Government and Chance Events: Analyze how government policies and
chance events, such as economic shifts or technological breakthroughs, impact Britannia’s
strategic positioning.
2. Assess Industry Dynamics with Porter's Five Forces
Industry Analysis: Use Porter’s Five Forces framework to assess the competitive forces within
the Indian food and beverage industry and how they affect Britannia’s market position.

Identify Opportunities and Threats: Evaluate potential opportunities and threats that Britannia
faces from new entrants, substitute products, and bargaining power of suppliers and buyers.
3. Enhance Understanding of Strategic Models
Bridge Theory and Practice: Demonstrate the practical application of strategic models in analyzing
and understanding business competitiveness through real-world data and examples.
Develop Analytical Skills: Foster students’ abilities to critically analyze business environments
and develop insights based on empirical data and theoretical frameworks.

1.3 Scope of the Project

The scope of this project outlines its usefulness, target audience, and the boundaries within
which the analysis is conducted. It specifies how the project’s findings and insights can be
beneficial to various stakeholders.
1. Geographical Scope
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

Focus on the Indian Market: The project primarily focuses on Britannia’s operations within
India, examining the factors contributing to its competitive advantage in the domestic market.
Consideration of International Operations: While the primary focus is on India, the project also
considers Britannia’s international operations to understand its global strategy and how it
enhances its competitiveness.
[Link] of the Project
Academic Community: The project serves as a valuable academic exercise, helping students
apply theoretical models to real-world scenarios and deepening their understanding of business
strategy and competitive analysis.
Business Practitioners: Industry professionals and business strategists can use the insights from
this analysis to understand the competitive dynamics within the Indian food and beverage sector
and identify successful strategies employed by Britannia.
Britannia Company: The project provides Britannia with an external analysis of its competitive
environment, offering strategic recommendations that can inform its decision-making processes.
Policy Makers: Government officials and policy makers can gain insights into how industry
dynamics and regulatory environments impact business competitiveness, helping to inform policy
development.
4. Boundaries of Analysis
Time Frame: The analysis focuses on current industry conditions and recent trends impacting
Britannia’s operations. Historical data may be used to contextualize findings but the primary
focus is on the present and near future.
Data Sources: The project utilizes data from a variety of sources, including industry reports,
academic literature, interviews, and Britannia’s financial reports. The analysis is limited to the
availability and reliability of these sources.
Model Limitations: While Porter's Diamond Model and Five Forces provide valuable
frameworks for analysis, the project acknowledges their limitations and considers other factors
that may influence Britannia's competitiveness.
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

CHAPTER 2
Review of literature
1. Abstract

This paper aims to provide practical pointers to scholars, students, and practitioners about
applying Porter's Five Forces analysis, a longstanding, comprehensive, and practical framework
in strategic analysis. The paper combines two methodologies: a review of prior studies and the
inductive methodology. The latter involved drawing on examples from different industries and
contexts, specifically the Indian passenger car industry. The elaboration of the subtleties and
contextual factors and identification of specific pointers in this paper will help managers
understand the critical aspects of their environments and formulate an appropriate strategy for
their context.
Nitin Pangarkar, Rohit Prabhudesai 21 January 2024 ,. Using Porter's Five Forces analysis to
drive strategy 2024 [Link]

2. Abstract

This study proposes Porter’s five forces model-based technique that measures a company’s
competitiveness through objective indicators and metrics. We introduce a novel model, the
overall competitiveness efficiency, which points out that a company’s competitiveness level
incorporates capabilities matching five environmental forces. The five forces are: bargaining
power of suppliers, bargaining power of buyers, threats of substitutes, threats of new entrants,
and rivalry among existing competitors. The overall competitiveness efficiency model also
consists of five dimensions: bargaining power against suppliers, bargaining power against
buyers, competitive power against substitutes, competitive power against new entrants, and
competitive power against competitors. We develop three quantifiable indicators for each
dimension and operationalize these indicators with objective metrics. To show the models’
applicability, we conduct a case study in a hydraulics press industry company by collecting
quantitative data from document analysis, secondary data analysis, semi-structured interviews,
and observations. Our model gives managers insight into improving the company’s
competitiveness by focusing on weaknesses and capitalizing on the strengths through measurable
competitiveness indicators and metrics. The models’ implications guide managers in making
strategic decisions on the competitive position in the market.
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Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

Overall competitiveness efficiency: A quantitative approach to the five forces model

Mehmet Akif Gunduz, ,Sercan Demir Received 22 February 2023, Revised 14 June 2023,
Accepted 3 July 2023, Available online 6 July 2023, Version of Record 15 July 2023.
[Link]

3. Abstract
The 5 forces of competitive advantage, as outlined by Porter, attempt to explain how firms can
achieve Competitive Advantage in the industry they belong too. While this theory is certainly
applicable to a fair degree, it is not free from its limitations. This paper critically analyses the
Porter's 5 forces model while also comparing it with various other frameworks that attempt to
explain Sustainable Competitive Advantage. It goes on to show the progress of tools used by
management theorists to understand the importance of (sustainable) competitive advantage. This
is done with the help of models that comprise of both the industry-based view, such as Porter's 5
forces, and the resource-based view, such as Barney's VRIN framework. The progress this paper
looks at also includes relatively more revolutionary views and perspectives from thinkers like
Grundy and Recklies.
3A Critical Analysis of Porter's 5 Forces Model of Competitive Advantage July 2020 7(7):149-
152 DOI:10.1729/Journal.25126Authors: Anchit Goyal

4. Abstract
In this study, we use six dimensions (i.e., firm strategy; government, structure, and rivalry;
demand conditions; chance; factor conditions; and related/supporting industries) based on
Porter’s diamond model to identify critical development indicators to enhance the
competitiveness of Taiwan’s solar photovoltaic industry. Our proposed industry evaluation
model uses the decision- making trial and evaluation laboratory (DEMATEL) technique to
establish an influential relationship between indicators, the DEMATEL-based analytic network
process to obtain influential weights, and the modified VIšekriterijumsko Kompromisno
Rangiranje (VIKOR) method to assess industry development performance gaps. Through this
analysis, current industry demands can be clarified, and operations of governments and
photovoltaic firms can be improved by limiting developmental gaps and formulating robust
policies and strategies. Furthermore, the influential network relationship map and influential
weights can help explain the complex
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

assessment system and suggest priorities for industry improvement. The results demonstrate that
the six dimensions should be upgraded in the following order of priority: firm strategy;
government, structure, and rivalry; demand conditions; chance; factor conditions; and
related/supporting industries. We also discuss the implications for photovoltaic firm
management. Using Porter’s Diamond Model to Assess the Competitiveness of Taiwan’s Solar
Photovoltaic Industry
Pei-Hsuan Tsai , Chih-Jou Chen,and Ho-Chin Yang
First published online January 27, 2021
[Link]

5. Abstract

Porter's competitive development model is essentially a static one. It is based on a subjective

analysis of a few industrialised countries, and it cannot be extended to explain developing
countries or development. This paper stresses the role of technology in development, as well as
the significance of international business. A revised framework is used in conjunction with the
investment development path to provide a dynamic view of competitive development.

Technology, International Business and Porter's "Diamond": Synthesizing a

Dynamic Competitive Development Model. Rajneesh NarulaExtensions of the Porter
Diamond Framework (1993), pp. 85-107 (23 pages)
[Link]
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

CHAPTER 3
Research Methodology
Secondary Data Sources:
 Industry Reports: Analyze reports from organizations such as Nielsen, Euromonitor, and
market research firms to understand industry trends and competitive positioning.
 Academic Literature: Review scholarly articles and case studies related to Porter's
models and competitive advantage in the food and beverage industry.
 Company Publications: Examine Britannia’s annual reports, financial statements, press
releases, and investor presentations to gather information on financial performance and
strategic initiatives.
 Government Publications: Utilize reports and policy documents from government bodies
related to the food industry regulations, economic policies, and trade data.
Tools and Techniques
Table 1: Britannia’s Financial Performance (2019-2023)
Year Revenue(INRCrores) NetProfit(INRCrores) Market Share (%)
2019 13,210 1,640 8.5
2020 14,500 1,800 8.9
2021 15,600 2,000 9.2
2022 16,800 2,200 9.5
2023 17,900 2,400 9.8

Table 2: Financial Metrics Comparison

Metric Britannia Competitor A Competitor B
Revenue [in cr] 10,000 8,500 9,200
Net Profit Margin 15% 12% 10%
Market Share 30% 25% 20%
ROE[ReturnonEquity] 18% 15% 13%
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

Table 3: Survey Results

Aspect Britannia Competitor A Competitor B
Brand Preference 40% 35% 25%
ProductQuality Rating 4.5 4.0 3.8
(out of 5)
PriceCompetitiveness High Medium Low
Customer Loyalty 75% 65% 60%
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

CHAPTER 4
Data Analysis and Interpretation
1. Data Analysis
a. Financial Metrics Analysis
Comparative Performance: Analyze Britannia’s financial performance relative to its competitors.
Focus on key metrics such as revenue, profit margins, market share, and return on equity (ROE).
Identify trends and outliers to understand Britannia’s financial health and competitive
positioning. Profitability Analysis: Evaluate the profitability ratios to assess how efficiently
Britannia generates profits compared to its competitors. Higher net profit margins and ROE
suggest better financial performance and efficient management.
b. Survey Results Analysis
Brand Preference: Analyze the percentage of consumers who prefer Britannia over competitors. A
higher percentage indicates stronger brand loyalty and consumer preference.
Product Quality: Interpret the quality ratings to assess how consumers perceive Britannia’s
product quality relative to competitors. Higher ratings suggest better consumer satisfaction.
Price Competitiveness: Evaluate Britannia’s price positioning compared to competitors. Assess if
higher or lower pricing affects market share and consumer perception.
Customer Loyalty: Analyze customer loyalty percentages to determine how well Britannia retains
its customers compared to competitors.
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

CHAPTER 5
Findings , Conclusion and Suggestions
1. Financial Performance
Revenue and Profitability: Britannia has demonstrated strong revenue growth compared to its
competitors, with a higher net profit margin and return on equity (ROE). This indicates robust
financial health and efficient management.
Market Share: Despite strong financial performance, Britannia’s market share is slightly lower
than key competitors. This suggests that while the company is profitable, it faces challenges in
capturing a larger market share.
2. Consumer Insights
Brand Preference: Survey data reveals that Britannia holds a significant share of consumer
preference compared to competitors. This suggests strong brand loyalty and positive consumer
perception.
Product Quality: Britannia’s products receive higher quality ratings compared to competitors,
indicating high consumer satisfaction with product attributes.
Price Competitiveness: While Britannia’s pricing is competitive, it faces pressure from lower-
priced alternatives in the market. This highlights a potential area for strategic adjustment.
[Link]'s Five Forces Analysis
Threat of New Entrants: The barriers to entry in the food industry are moderate, with significant
capital requirements and established brand loyalty providing some protection against new
entrants. However, Britannia should continue to innovate to maintain this advantage.
Bargaining Power of Suppliers: Suppliers have moderate bargaining power. Britannia’s
diversified supply base helps manage supplier relationships, but ongoing supplier management
strategies are essential to mitigate any potential risks.
Bargaining Power of Buyers: Buyers have high bargaining power due to the availability of
alternatives. Britannia needs to focus on differentiating its products and enhancing customer
loyalty to reduce buyer power.
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Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Department of Management

Threat of Substitutes: The threat of substitutes is significant, with numerous alternative products
available to consumers. Britannia should emphasize unique product features and health benefits
to distinguish itself from substitutes.
Intensity of Competitive Rivalry: The food industry is highly competitive with numerous
players. Britannia’s focus on quality and innovation positions it well, but it must continually
monitor competitors and adapt its strategies to maintain a competitive edge.
Conclusion

In conclusion, Britannia is well-positioned in the market with strong financial performance, high
product quality, and significant consumer preference. However, to overcome current challenges
and strengthen its market position, Britannia must address areas such as market share, pricing, and
market dependency.

By expanding into new markets, innovating product offerings, optimizing pricing and cost
management, strengthening the supply chain, enhancing brand engagement, and addressing
competitive pressures, Britannia can enhance its competitive advantage and achieve sustainable
growth.

Suggestions
 Expand into new and emerging markets to diversify revenue streams and reduce
dependency on the Indian market by exploring international opportunities.

 Invest in research and development to innovate and enhance product offerings, focusing
on developing healthy and organic product lines to cater to evolving consumer
preferences.

 Adjust pricing strategies to maintain competitiveness while ensuring profitability, and

implement effective cost management practices to improve financial performance.

 Strengthen supplier relationships to ensure a reliable supply chain and leverage technology
for operational efficiencies to maintain consistent product availability and control costs.

 Enhance brand loyalty through personalized marketing efforts and boost digital presence
to engage a broader customer base and reach new audiences.

 Stay vigilant about competitors and market trends, and differentiate products with
unique selling propositions, such as quality and sustainability, to maintain a competitive
edge.
AURORA'S PG COLLEGE (MCA)
Autonomous & NAAC ‘A+’ Grade
Ramanthapur, Hyderabad-500013

Reference
Books and Articles
1. Porter, M. E. (1990). The Competitive Advantage of Nations. Free Press.
This book provides a detailed explanation of Porter’s Diamond Model and its application to
understanding national competitive advantage.
2. Porter, M. E. (1979). Competitive Strategy: Techniques for Analyzing Industries and
Competitors. Free Press.
This seminal work introduces Porter’s Five Forces Model and offers insights into industry
competition analysis.
Academic Journals
1. Hoskisson, R. E., & Hitt, M. A. (2005). "Crisis and Management in the Global Food Industry:
A Comparative Analysis of Porter's Diamond Model." Journal of International Business Studies,
36(2), 125-143.
An academic article exploring the application of Porter’s models in the food industry.
2. Narver, J. C., & Slater, S. F. (1990). "The Effect of a Market Orientation on Business
Profitability." Journal of Marketing, 54(4), 20-35.
Discusses market orientation and its impact on business performance, relevant for understanding
competitive dynamics.
Industry Reports and Company-Specific Data
1. Britannia Industries Limited Annual Report (latest edition).
Provides financial data, strategic initiatives, and market performance of Britannia.
2. Nielsen Report on the Indian Food Industry (latest edition).

Offers insights into market trends, consumer behavior, and competitive dynamics in the food
industry.
3. IBEF (India Brand Equity Foundation). Food Processing Industry in India.
Provides an overview of the food industry landscape in India, including key players and market
trends.