IncompleteKEY MANAGEMENT ISSUESShimla Dairy is not among the current major players in the market. The daily production capacity of the market leader (Britannia) is almost 50 times that of Simla Dairy. With almost 29 varieties of products, Shimla is now looking to increase the product line further. The company currently has 2 factories one in Shimla and the other in Kiarighat with a total capacity of 10,000 liters of milk processing. With the cheese industry moving towards the growth phase, a sharp increase in competition is expected, both from domestic and foreign operators. This gives rise to numerous management issues. Which are as given below: • Currently, the company is not focused as it has a diversified product line with too many varieties of dairy products. With so many products you can't be sure which market segment to target to take advantage of the growing market. • Current production capacity is low to face upcoming competition. The dairy currently produces 10,000 liters of milk per day even after 30 years of presence on the market. This will certainly influence the chances of taking advantage of the current growing market and managing the industry's consumption cycles. The question of whether to decide on expanding production capacity: With the incredible growth expected in the industry, the question facing management now is whether or not to increase production capacity. This is absolutely necessary as expanding production capacity will enable the company to supply and meet demand, as well as achieve economies of scale, which can be used as a competitive advantage over new entrants. However, this requires capital investment on the assets needed for expansion. Another key issue here is to decide which market segments to target and enter as Shimla Diary should now focus its efforts on certain market segments and cater to their needs based on the level of profitability and attractiveness offered by the segment. • Another issue that needs to be addressed is building the company's brand value: the company is very small and is not among the major players in the industry. It had never invested in marketing costs to promote itself and had only relied on word of mouth. The company recently released some flyers and a brochure and also started supplying refrigerators with the name Shimla Dairy highlighted to the shops where most of the big players were practicing it since then.