The Swagruha Foods case has been developed to highlight the challenge facing many small and medium enterprises (SMEs) all over the world. There are many SMEs that have successfully overcome the initial survival challenge. They have a stable base of loyal customers, are able to command attractive prices, and have built up a reputation for good quality. Yet they are unable to grow beyond a certain point. Why? What must they do to overcome the growth challenge? Swagruha Foods is a good example of an SME that has enjoyed considerable success, thanks to the dedication and commitment of the Chagarlamudi family as well as to the changing socio-economic situation in India. Yet, there are several indications that it is unable to fully exploit its growth opportunities.
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