...COMPETITIVE STRATEGY MICROMAX –THE INDIAN INNOVATOR Can Micromax make the leap from Indian to global brand? Faculty Guide: Naveen Coomar SUBMITTED BY: ANKUR MAKHIJA ROLL NO .55 IIFT PT 12-15 What is Competitive Strategy? Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment). Such type of strategies plays a very important role when industry is very competitive and consumers are provided with almost similar products. Before devising a competitive strategy, one needs to evaluate all strengths, weaknesses, opportunities, threats in the industry and then go ahead which would give one a competitive advantage. According to Michael Porter, competitive strategy is devised into 4 types: 1. Cost Leadership Here, the objective of the firm is to become the lowest cost producer in the industry and is achieved by producing in large scale which enables the firm to attain economies of scale. High capacity utilization, good bargaining power, high technology implementation are some of factors necessary to achieve cost leadership. E.g. Micromax mobile phones 2. Differentiation leadership Under this strategy, firm maintains unique features of its products in the market thus creating a differentiating factor. With this differentiation leadership, firms...
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...Marketing Management | MICROMAX | – A study of the India’s fastest growing domestic mobile handset-maker | TABLE OF CONTENTS Introduction 3 Industry Overview 3 Company Overview 6 Key Strengths 8 Key Challenges (Weaknesses) 8 Key Opportunities 9 Key Threats 10 Key Strategies 10 Marketing Strategies of Micromax and Competitor Responses 11 Promotion 11 Product 12 After Sales Service 12 Distribution Network 13 Future Focus 14 The Road ahead 15 References 16 Appendix 17 Key Micromax Models 17 Manufacturing Plans for Indian Handset Players: 18 Introduction In this short project report, we've attempted to explore the strategies adopted by Micromax, the leading domestic handset maker of India, which enabled them to penetrate into the Indian mobile handset market and mark a niche for themselves. We've presented a brief overview about the Indian mobile handset industry and a background about the company taken for study (Micromax). A SWOT analysis has been done and we tried to bring out the key strengths, weaknesses, opportunities & threats as a result of that analysis. We also did a comparative study of Micromax along with two major competitors, (one established player – Nokia & one upcoming player – Karbonn), in aspects including their promotion strategies, product varieties, distribution network and after sales service. We attempted to conclude this study by presenting the road ahead for Micromax as we perceive. Industry...
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...March 31, 2013 Tags: Indian handset makers | Handet marjet | Micromax STORY TOOLS Change font size Print this story E-Mail this story Comment RELATED Indian handset makers get squeezed by global brands Nidhi Francis, a former journalist who lives in a south Delhi locality, used Samsung mobile phones for years. But when her Samsung Galaxy series smartphone conked off last November, she decided to replace it with a Micromax Canvas 2. The handset was launched the month before and had been selling like hot cakes. Why did she junk smartphones sold by the multinational giant and chose one made by a local company instead? "I liked the configuration, it was cheaper, and the quality of the device was good," says Francis, who bought the handset from online retailer Flipkart as it was not available at any nearby store. "I was a bit apprehensive earlier, but I am happy I did not spend thrice the amount for a phone of perhaps the same quality." Customers like Francis, who want high-end devices at an affordable price, are helping Micromax Informatics reinvent itself from a seller of only low-cost feature phones to one with a wider portfolio that includes smartphones and tablets. The Canvas 2, for instance, runs on Google's Android operating system and has a five-inch screen. The dual-SIM device has an eight megapixel camera and is Wi-Fi and 3G enabled for Internet connectivity. Micromax sold 174,000 Canvas 2 devices in January alone. Demand for the...
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... The faculty members at AIBS, who continued to have an impact on our thinking which helped us to complete this project. And all other staff members at the institute. Richa Bhalla Udai Bir Bhasin INDEX S.NO. | PARTICULARS | PAGE NO. | 1. | Executive Summary | 4 | 2. | Introduction | 5 | 3. | Difference between a Smartphone & Feature Phone | 7 | 4. | Indian Telecom Industry | 8 | 5. | SWOT Analysis of Mobile Industry | 12 | 6. | Low-Priced Segment of Mobile Phones | 13 | 7. | Market Structure & Segmentation | 15 | 8. | International Business | 20 | 9. | The Case of Micromax | 26 | 10. | The Case of Karbonn Mobiles | 30 | 11. | Recommendations | 33 | 12. | Conclusion | 34 | 13. | Bibliography | 35 | EXECUTIVE SUMMARY The purpose of this paper is to focus on the low-priced segment of mobile phones. The mobile subscription rate in India has had an exponential growth over the last decade out doing China in leading the world market for number of wireless...
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...for an exploratory research, the objective of which was to identify needs, desired attributes, relative importance of attributes and how different competitors are rated on the attributes. The consumers were chosen in the following manner: • 4 existing smart phone users (1 Nokia, 1 Samsung, 2 Micromax) • 1 intending buyer of smart phone • 3 switchers – 2 from Nokia to Samsung; 1 from HTC to Nokia 1.1 Consumer Insights Consumers, belonging to the age group of 21 – 25 years, who were students from an urban background, were chosen. The following details the research done amongst this sample population. Consumer 1 (Existing Samsung User) Age 21 years Student Occupation Urban User Category Samsung Galaxy S Current Model of Phone Nokia Xpress (Feature Phone) Switched from? Touch Screen, Android, Applications, Need Processor Touch Screen, Android, Applications, Attributes Processor Android > Processors > Applications Relative Attribute importance Samsung > Nokia Competitor rating Google-Nexus Alternatives evaluated A combination of conjunctive and Decision rule /heuristic lexicographic heuristic Social Any factors that influenced the buying? No specific loyalty Loyalty Consumer 2 (Existing Micromax User) Age 24 years Student...
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...VOLUME NO. 3 (2013), ISSUE N O. 12 (DECEMBER ) ISSN 2231-1009 A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, ProQuest, U.S.A., EBSCO Publishing, U.S.A., Cabell’s Directories of Publishing Opportunities, U.S.A., Open J-Gage, India [link of the same is duly available at Inflibnet of University Grants Commission (U.G.C.)], Index Copernicus Publishers Panel, Poland with IC Value of 5.09 & number of libraries all around the world. Circulated all over the world & Google has verified that scholars of more than 2980 Cities in 165 countries/territories are visiting our journal on regular basis. Ground Floor, Building No. 1041-C-1, Devi Bhawan Bazar, JAGADHRI – 135 003, Yamunanagar, Haryana, INDIA http://ijrcm.org.in/ VOLUME NO. 3 (2013), ISSUE N O. 12 (DECEMBER ) ISSN 2231-1009 CONTENTS Sr. No. TITLE & NAME OF THE AUTHOR (S) PALLAWI UNMESH BULAKH & DR. AJIT MORE ORGANISATIONAL CULTURE AMONG THE APPAREL MANUFACTURING AND EXPORTING ORGANISATIONS LOCATED IN TIRUPUR CLUSTER DR. J. SHANTHILAKSHMI & S. GANESAN INDIAN CONSUMER BEHAVIOUR ON BRAND LOYALTY: SUBSTANCE STILL SCORES OVER STYLE RIDDHI BISWAS ROLE OF TEACHERS IN QUALITY ASSURANCE IN INDIAN HIGHER EDUCATION DR. ANIL CHANDHOK THE ROLE OF ENTREPRENEURS IN THE ECONOMIC DEVELOPMENT OF INDIA DR. SAMBHAVNA GUPTA, DR. M. K. GUPTA, DR. JASVEEN KAUR & DR. PRADEEP KUMAR...
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...the evolution primary focus was on voice based services. The supply side players have designed and successfully implemented low cost, profitable operational models to tackle the first phase. Internet penetration in India is expected to be driven by mobile and is expected to drive the next growth phase in Indian Mobile industry. In order to cater this growth trajectory mobile handset manufacturers are introducing new products in the market that are technologically advanced. The India Mobile handset market posted a net growth of 14.7% in FY13 whereas gross sales piled upto Rs 35,946 crore as compared to Rs 31,330 crore in FY12. The sale of Smartphone primarily contributed for this growth. According to the data received from CyberMedia Research (CMR) that tracks shipments of mobile handsets on a monthly basis, India registered 73.5 million mobile handset shipments for the period January-April 2013, registering a growth of 11.1% year-on-year. During the same period, 9.4 million smartphones were shipped in the country, a growth of 167.3% on an annual basis. Form Factor | Unit Shipments Jan-Apr ‘13[million] | Growth (YoY) Jan-Apr ’13 over Jan-Apr’12 | Unit Shipments Apr’13 [million] | Growth (YoY) Apr ’13 over Apr’12 | Mobile Handset | 73.5 | 11.1% | 19.4 | 22.1% | Featurephones | 64.1 | 2.4% | 16.6 | 10.3% | Smartphones | 9.4 | 167.3% | 2.8 | 233.1% | CMR quarterly Mobile Handset Data What is the outlook for the industry in India? What are key forecasting variables...
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...Category Wireless Wireline Subscriber Base 874,175,666 Market Share 99.290% 0.710% 6,252,253 880,427,919 Grand Total 100.000% Grand Total 100.000% 4 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao GSM Network Analysis Group Company-wise % market share (Subscribers) - July 2013 Sl. No. 1 2 3 4 5 6 7 8 9 Name of Company Bharti Airtel Vodafone IDEA BSNL Aircel Uninor Videocon MTNL Loop Mobile Total Sub Figures Additions in July 2013 % Market Share 191,389,014 154,423,174 125,268,206 97,172,146 61,725,497 32,759,303 2,771,780 4,090,541 3,028,539 476,593 -610,694 300,099 0 755,523 463,431 353,787 -244,505 0 28.45% 22.96% 18.62% 14.45% 9.18% 4.87% 0.41% 0.61% 0.45% % Growth over previous month 0.25% -0.39% 0.24% 0.0% 1.24% 1.43% 14.63% -5.64% 0.00% All India 672,628,200 1,494,234 100.00% 5 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao 6 Desay...
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...MOBILE INDUSTRY HISTORY Indian Mobile Industry Stats [Infographic] by ARUN PRABHUDESAI Recently, I have been coming across some interesting infographics and presentations on Indian Mobile Industry. We published one such infographic earlier this week – And here is the second one which the readers will find quite interesting as well. Eyedea Lab, a Web and Graphics Design Studio at Kolkata recently published an informational Infographic which gives you a nice overview of Indian Mobile Industry. Did you know that first mobile phone call in India was made by Late Mr. Jyoti Basu to Mr. Sukh Ramon 30th July 1995. so it can be officially said that Indian Mobile Industry has just finished its 16th year – and is still a teenager so to say! Indian Mobile Industry Infographic [Click on the image to zoom] Yeah, the call rates back then were Rs. 32 per minute and incoming & outgoing both used to be charged ! MARKET TRENDS Five Trends That Will Shape the Mobile Industry in 2011 * Evaluation of Patent Trends, Technology Evolution, and Product Innovation Indicates Potential Winners and Losers in the Technology Battles Facing Mobile Industry UBM TechInsights has made key predictions about the future of the mobile industry based on its in-depth research on patent trends, technology evolution, and product innovation. These five trends will be of strategic importance to most players in the mobile communication industry in 2011, including smartphone and tablet computing OEMs...
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...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
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...oceans: Red Ocean and Blue Ocean. Red Ocean is representative of all such industries/products which already exist and are thus representative of the known market space. Blue Oceans denote the industries/products not in existence today. Blue Oceans thus represent the unknown market space. In the Red Ocean industry boundaries are defined and well accepted. This means the existing competition is well known in the market space and the players in the market try to outperform their rivals to get greater share of the existing market demand. As existing market space gets crowded prospects for good profit and growth in future are reduced. Products then lose their distinctiveness and become regular commodities resulting in cut throat market competition thus turning Red Ocean more red or bloodier. Blue Ocean in contrast is defined by untapped market space, opportunities for highly profitable growth and possibility for new demand creation. [1] 2. Understanding Creation of Blue Ocean According to the W. Chan Kim and...
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...| | Market Mix of Mobile Phone Market in India | | | | | | | | | | Letter of Transmittal July 16, 2013 Subject: Submission of Report. Dear Sir, We are pleased to submit the report that you asked for & gave us the authorization to work on “Marketing Mix of mobile phone market in India”. This report is an essential part of our course, we tried our best to work on it carefully and sincerely to make the report informative. The study we conducted enhanced our knowledge to make an executive report. This report has given us an exceptional experience that might have immense uses in the future endeavors and we sincerely hope that it would be able to fulfill your expectations. We have put our sincere effort to give this report a presentable shape and make it as informative and precise as possible. We thank you for providing us with this unique opportunity. Sincerely yours, Acknowledgement “It is not possible to prepare a project report without the assistance & encouragement of other people. This one is certainly no exception.” On the very outset of this report, we would like to extend our sincere & heartfelt gratitude towards all the personages who have helped us in this endeavor. Without their active guidance, help, cooperation & encouragement, we would not have made headway in the project. We are extremely thankful and pay our gratitude to our faculty Prof. Ashish Banerjee for his consultative help and constructive...
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...its subsidiaries focus on branded product offerings in tea but with a significant presence in plantation activity in India and Sri Lanka. * The Tata tea brand leads market share in terms of value and volume in India and has been accorded the ‘super brand' recognition in the country. * Tata tea also has 100% export oriented unit manufacturing instant tea in the state of Kerela, which is the largest such facility outside the United States. Current Position of Tata Tea LTD. * After the financial collapse in the year 2000, Tata Tea is now moving forward toward the growth. Currently share value of Tata tea has moved up to Rs 700 per share. * Tata tea has been ranked as the most trusted beverage brand in India (The Economic Times, 2007) The company's marketing strategy of focusing on continuous innovation in all direction of brand marketing and sales, has helped Tata Tea to achieve excellent growth in recent years (Ms Sangeeta Talwar, Executive Director-Marketing, Tata tea Limited). Tata Tea Business Expansion Currently smart phone market in India is booming and there is wide...
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...LITERATURE REVIEW The versatile Indian mobile market is a crowded by numerous mobile vendors. The sales of mobile phones in India grew 3.6 percent to reach 40 million units during the quarter ended Sep 30, according to IDC’s India quarterly mobile handsets tracker, 3Q 2010. According to the study, Finnish handset maker Nokia had the largest share of 31.5 percent in terms of units shipped during the quarter. While the emerging vendors captured 41.2 percent combined share of the market. Chinese brand ‘G’Five’ followed Nokia in terms of units shipped share and Korean handset manufacturer Samsung occupied the third position. The study also showed a strong quarter on quarter growth in Smartphone sales of 34.2 percent, and a year on year rise of 294.9 percent. This clearly underscores that India mobile handset buyers have started showing higher preference for Smartphone. Thanks to increased competition, the prices of the Smartphone also dropped through the year. Over 80 percent of total Smartphone sales were below the average sales value of Rs.18, 000 in the second quarter of the year while this proportion increased to 90 percent in the third quarter. ‘The India mobile handsets market got even more crowded and fragmented in the lower- and mid-market segments with the further entry of new players offering innovative models at attractive price points to lure buyers,’ said Anirban Banerjee, associate vice president, research, IDC India. ‘The propensity to adopt feature phones and...
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...What is strategy? Strategy is the creation of a unique and valuable position, involving a different set of activities such as: * Few needs of many customers * Broad needs of few customers * Broad needs of many customers in a narrow market Today, in this globalized world, each and every sector of economy has been integrated into a single platform by technology. The businesses and markets are becoming dynamic and advancement in technology have questioned the sustainability of competitive advantage. All the industries and organizations all over the world are under tremendous pressure to improve productivity, quality and speed. In order to manage these factors, managers are using the tools such as TQM, benchmarking, and re-engineering. Operational improvements are taking place but it has not been able to provide sustainable profitability to the organizations. And gradually, these tools of measurement have taken the place of strategy. In his five-part article, Michael Porter explores how that shift has led to the rise of mutually destructive competitive battles that damage the profitability of many companies. As managers push to improve on all fronts, they move further away from viable competitive positions. Porter argues that operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities...
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