Abstract: In January 2021, Birju Patel, the business heir of Dhanvantari Guj Herb, a Gujarat-based Ayurveda company, was at one hand content with the supply of raw materials for production but, on the other hand, anxious about the continuity in supply as the business experienced heavy demand during the pandemic. Dhanvantari’s business of manufacturing and marketing ayurvedic products has seen sequential growth over the past few years for the company, and 2020 presented a rare opportunity to boost Dhanvantari’s presence in this space. Birju knows that the relationships that he has maintained with the stakeholders, both internal and external, have paid rich dividends to the company, but with greater demand and also a possibility of scaling up in the future would the relationships continue yielding similar returns.
After completing the case discussion, students will be able to do the following:
• Learn and apply the concept of Resource-Based View (RBV) and VRIN resources to business models;
• Reinforce the role of relationships in order to succeed in business;
• Finally, students will also see the challenges that small businesses can face in a competitive industry environment.