Service Tyre and Tube Division: Strategic Capabilities for Business Growth

Abstract

The case describes the growth challenges faced by Service Industries Limited (SIL) in the year 2014. There were a number of strategic growth options available to the firm, some related to product diversification and some related to product extension, and SIL had to devise the best plan in order to tap into these strategic growth options. Since 2011, SIL was continuously on the growth path where its domestic and international sales had increased. This had been made possible through improving virtually every aspect of its value chain as well as activities in the market and product development sides. However, recently, the domestic sector which gave the lion’s share of its sales was undergoing a stagnation, and thus SIL was exploring new avenues of growth in both the domestic and the international markets. These avenues included venturing into tractor tyres and tubes business, auto spare parts business (in which SIL had already embarked) and export business. Each of these growth options had its own peculiarities and implications on various sections of its value chain. This might disturb the very recipe of its internal systems that had given SIL significant growth since 2011 in the first place. Arif Saeed, Managing Director of SIL Tyre and Tube Division had to take steps in a careful and cautious manner in order to further grow.