Question

Oorja and KTC Wifi are two broadband provider companies operating in South-East Delhi. Both are close competitors and have developed their strong customer base over the years. The COVID-19 pandemic made the offices and schools switch their customer base online. Just then a multinational service provider company, Storex BB, entered the market and launched its services at a much cheaper price with better connectivity. To counter the threat posed by the company Storex BB, both companies Oorja and KTC Wifi decided to consolidate their business.

1. Identify the enterprise growth strategy adopted by Oorja and KTC Wifi.
2. State the type of growth strategy identified in part (a) above.
3. Give the goal of the type of growth strategy as stated in part (b) above.

Answer 1

1. The enterprise growth strategy adopted by Oorja and KTC Wifi is consolidation.
2. The type of growth strategy identified is a merger.
3. The purpose of a merger as a growth strategy is to create a stronger, more competitive corporation by combining the resources, customers, and strengths of both businesses. This tactic helps in
   1. Enhancing market presence
   2. Reducing competition
   3. Achieving economies of scale
   4. Improving service offerings
   5. Strengthening financial stability

In this case, Oorja and KTC Wifi want to use their combined resources and market strengths to oppose Storex BB's threat and maintain their competitiveness in the market.