Micromax

In: Business and Management

Submitted By akshaykrgupta
Words 6054
Pages 25
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 target to achieve market leadership. And firms charge a premium price for the products (due to high value added features) Superior brand and quality, major distribution channels, consistent promotional support etc. are the attributes of such products. E.g. BMW,
Apple
3. Cost focus
Under this strategy, firm concentrates on specific market segments and keeps its products low priced in…...

Similar Documents

Anybody Could Read It

...Nano is finding it hard to push up its sales further. For the same, the company is now coming out with innovative marketing strategies and financing schemes in India. Micromax Till early 2008, Indian mobile handset market was dominated by players like Nokia, Samsung, LG, Sony Ericsson, Motorola etc. The market was ruffled by entry of Micromax. The company came in with product offers that were in the range of Rs. 1, 500 to Rs. 2, 500. Initially the company focused on small towns and rural market but soon it started to focus on building brand image and product portfolio which attracted all. Micromax is now India’s third largest GSM mobile phone vendor. Following value innovations by Micromax helped the 1326 Ninth AIMS International Conference on Management January 1-4, 2012 company to beat the competition: (a) increasing the battery size thereby leading to long lasting battery power. This innovation was extremely suitable for those areas in India which are suffering from erratic power supply (b) Launch of dual SIM and dual reception (GSM and CDMA) handset in the market even before world leader Nokia was able to do so in India (c) Introduction of high technology and good quality handsets, that is handsets with touch screen application or handsets with Android application at very low prices in India, (d) Micromax also introduced mobile phones with Qwerty keyboards in India at very reasonable prices (e) Building strong dealer network. The company has an estimated over......

Words: 3483 - Pages: 14

Retailing

...It leads the tablet market in India ahead of global giants like Samsung and Apple (according to CyberMedia Research figures released on Monday) and is the third largest mobile player in terms of volumes. Micromax, which entered the mobile space just four years ago in 2008, is doing all this, and more: the company on Tuesday forayed into the home entertainment space with LED televisions and home theatre systems. Also Read Related Stories News Now - Micromax forays into home entertainment market, launches LED TVs - Micromax leads the tablet race in India - Micromax leads the tablet race in India - Power packs for smartphones - Is Sony buying time, or problems? - Samsung Q3 profit doubles to $7.3 bn Also Read Related Stories News Now - Markets end flat - Raising investment limit for insurers would be imprudent: Irda - Barmer refinery unviable without all crude from Cairn: HPCL - India can export 2-3 mn tonnes of rice for next 10 years: Gurdev Khush - Ukraine shows interest in Chandrayaan-II More And co-founder Rahul Sharma says it’s quite possible that Micromax will do a Samsung and storm the global markets with its products. “As a brand, we want to be able to touch the lives of consumers. The whole conversion from mobile phones to smart phone to tablets and to TV will happen sooner than later. And we want to be part of that story,” says Sharma. With......

Words: 1246 - Pages: 5

Term Paper on Tyre Industry

...Meenakshi Malhotra who provided us with their unending support from the very beginning of the project, which helped in the timely completion of the project. 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 communication devices used by the people residing in it. There has also been an increase in the telecom services providers for example the acquisition of Hutch by Vodafone and the Tata DoComo merger to serve the emerging and huge potential Indian market. The past couple of years have seen an outburst of technology with companies like Research In......

Words: 8460 - Pages: 34

Business India

...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......

Words: 1815 - Pages: 8

Test

...players have and advantage of distribution and dealers network in rural market across India. What are top companies in that industry? Apple, Nokia, Samsung, Sony, LG are the major international brands that produce handset over a variety of range right from entry level handset to top notch premium products. In the smartphone segment Samsung has dominated the segment by being the segment leader for 3 consecutive years. The market share of Samsung soared at 26% in FY12 in the smartphone segment however towards the FY12 Q3 the company faced stiff competition by couple of aggressive local competitors. The low cost product introduced by Karbonn and Micromax has resulted in shift of paradigm for the market leaders. Micromax grew to 633,000 units in Q4FY12 from 9,990 units a year earlier, while Karbonn grew to 304,000units from zero. Micromax not just increased it sale but also gained market share (22%) from competitors and narrowed the gap on Samsung’s market share. The key distinctive factor between the local players and global players is the fact that the former caters to a wide range of consumers. Few consumers demanded affordable dual sim devices, some required reasonable 3G devices, some required budget friendly phablet, the local players were able to assess and provide a solution to cater these demands faster than the global players as a result of which they were able to capitalize over the opportunity and gain market share. What are the critical success factors for a......

Words: 759 - Pages: 4

Tcl Mobile

...103.58% 11.05% -18.70% 19.51% 13 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao Venders Market Performance in Mobile Phone Section Venders Samsung Nokia Micromax Karbonn Apple HTC Blackberry Lava LG Sony Spice ZEN ZTE Huawei G'FIVE LEMON MAXX Others Grand Total Market Share 31.50% 27.30% 8.70% 6.40% 3.60% 3.30% 3.10% 2.80% 2.30% 2.20% 2.10% 1.30% 1.20% 0.90% 0.60% 0.40% 0.30% 2.00% 100.00% Revenue (In Billion US$) FY 2011-12 1.409 2.129 0.353 0.237 0.045 0.165 0.261 0.088 0.139 0.073 0.141 0.030 0.067 0.134 0.120 0.021 0.077 0.106 5.595 FY 2012-13 2.023 1.746 0.560 0.410 0.231 0.211 0.201 0.179 0.146 0.142 0.134 0.084 0.078 0.061 0.038 0.026 0.021 0.127 6.418 Growth 43.60% -18.00% 58.60% 73.10% 417.20% 27.80% -23.10% 104.30% 5.00% 94.40% -4.70% 176.50% 15.60% -54.70% -68.40% 27.80% -72.30% 20.00% 14.70% Others Include: Acer, Akai, Videocon, Haier-Olive, Airfone, Motorola, Fly & Wyncomm and others 14 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao 15 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao 16 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao Venders Market Performance in Tablet PC Section Venders Samsung Apple Micromax Karbonn Datawind RIM HCL Others Grand Total Market Share 48.80% 20.20% 4.90% 2.70% 2.50% 2.00% 1.60% 17.30% 100.00% Revenue (In Billion US$) FY 2011-12 0.198 0.079 0.009 NA NA 0.022 0.007 0.045......

Words: 3858 - Pages: 16

Revival of Nokia

...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 Occupation Urban User Category Micromax Canvas HD Current Model of Phone Sony Ericsson Xperia Neo Switched from? Big Screen Need Big Screen, Low Price, Software Attributes Updates & OS Big Screen > OS > Speed > Updates Relative Attribute importance Competitor rating Alternatives evaluated Decision rule / Heuristic Any factors that influenced the buying? Loyalty Nokia > Micromax None Conjunctive heuristic Friends No specific loyalty Consumer 3 (HTC to Nokia......

Words: 3182 - Pages: 13

Consumer Perception

...Included in the International Serial Directories vi http://ijrcm.org.in/ VOLUME NO. 3 (2013), ISSUE N O. 12 (DECEMBER ) ISSN 2231-1009 A STUDY ON CONSUMER BEHAVIOUR TOWARDS CELL PHONES RAJESH KUMAR ASSTT. PROFESSOR DEPARTMENT OF BBA & COMMERCE POST GRADUATE GOVERNMENT COLLEGE SECTOR – 11, CHANDIGARH ABSTRACT Communication has become the life blood of human being and business life. Various modes of communication are available in present era. Cell phone is one of the faster growing and very popular mean of communication. Cell phone has become the necessity of life. Cell phone help the people to remain in the contact with their near and dear. . Now there is very stiff competition among cell phone play like Nokia, Samsung , micromax ,sony and other, etc. Each company is offering and launching various new models to attract the new customers. Now the features of cell phone have gone into major improvement. I phone used to be heavy without any attractive design, features etc, but with the growing awareness among the consumers and growing competition cell phone are offered with a variety of features such as MMS, SMS, internet system and memory. We can say that cell phone have become a thing of necessity and pride. KEYWORDS consumer behaviour, cell phones. INTODUCTION C onsumer behavoiur may be defined as " Those acts of individuals directly involved in obtaining and using economic goods and services, including the decision processes that proceed and......

Words: 7924 - Pages: 32

History of Micromax

...History of Micromax The history of Micromax (2011-12 revenue: Rs 1,978 crore or Rs 19.78 billion), which entered into the mobile phone market in 2008, is one of the most fascinating success stories in the Indian consumer electronics industry. In a very short span of 5 years, the company has taken up the third position (by volume) in the mobile handset market in India and is at No. 12 globally. It is a leader in the Indian tablet market with 18.4 per cent share, beating industry giants like Samsung and Apple. Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000. They started manufacturing mobile phones in 2010 with a focus on low pricing, in order to compete with international brands. Everything started with a truck battery in the year 2007. In the powerless city of Baharampur in the Indian State of West Bengal, Mr. Rahul Sharma saw an AirtelPay Phone being powered by a truck battery. Every night, the PCO owner would lug the battery 12 km to an adjoining village on his cycle, charge it there overnight, and lug it back to Berhampur in the morning. Rahul was fascinated by the nature of innovative adaptation to suit the difficult conditions which the payphone operator had employed and his interest only grew when he found out that to everyone’s surprise, the operator was also able to earn a tidy sum of money. Based on this experience of innovation arising from constraint, Micromax soon launched its first phone with a month long battery back-up known as X1i...

Words: 855 - Pages: 4

Samsung

...Strategic Brand Management - Brand Analysis Introduction We have chosen to analyze the issues faced by Samsung in the consumer mobile market. Samsung was established in 1938 as a trading company. It has since grown into a large and highly respected conglomerate headquartered in Samsung Town, Seoul, with operations in over 74 countries. But in recent years the dominance of Samsung in the android mobile market has been threatened by incumbents like Xiaomi and Micromax. Moreover it is facing increased competition from Apple as consumers are becoming more discerning in their product choices. Customers With a complex set of product offerings varying from low to high- end, Samsung is evidently employing a total market strategy, targeting a diverse set of consumers: young consumers, professionals, married couples to families with kids. This total market strategy is reinforced by Samsung’s Galaxy S3 slogan “designed for humans”. Just like Apple, Samsung has its own set of loyalists - a group that is mostly composed of tech savvy individuals who are mesmerized by the open platform Android. Samsung caters to consumers that value efficiency, sensibility, and practicality. Competitors The competitive landscape of Samsung Electronics is multi-faceted. It faces competition from international and domestic brands - with differing price points, operating systems, features and market share. Samsung’s competitors include Apple, Sony, Lenovo, Nokia, LG, HTC, Huawei,...

Words: 535 - Pages: 3

Standard Essential Patents

...Standard Essential Patents which have been brought by Ericsson against Micromax, Gionee, Intex and recently against Xiaomi and in some cases Ericsson was able to obtain injunction order against some of these parties. The jurisprudence related to SEPs and related injunction is still in evolutionary stage, it would be worth noting the decision in the pending cases that will ultimately shape India’s FRAND jurisprudence and also would help in determining important issues namely whether competition commission has jurisdiction to decide the royalty rates in Standard Essential Patent licensing agreement, injunctive relief and whether there would be any guideline which could maintain a balance between the exclusive rights of patentee along with the public interest. The first dispute involved Ericsson and Micromax as the parties . The suit arose when Ericsson required Micromax to pay royalties to use its technologies. Micromax refused to accept the FRAND terms offered by Ericsson. Ericsson claimed Rs. 1 billion (approx US $ 17 million) against Micromax in a civil suit filed against Delhi High Court alleging the infringement of its eight SEP’s and the single judge passed an ad interim ex-parte order in favour of Ericsson. The parties then entered into an meanwhile arrangement under which Micromax started paying royalties to Ericsson at the demanded rate while the infringement suit was still pending . Micromax thereafter filed a complaint before competition commission alleging that...

Words: 3902 - Pages: 16

Micromax

...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......

Words: 1300 - Pages: 6

Growth of Micromax

...Growth Of Micromax Introduction Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000. It started selling mobile telephones in 2008, focusing on low pricing to compete with international brands. Micromax's co-founder Rahul Sharma once saw a public call office being powered by a truck battery because of frequent power cuts in its locale. It prompted him to launch a feature telephone with an extended battery life. Micromax launched X1i, its first telephone with a month-long battery back-up. In 2014, Micromax's sales exceeded those of Samsung to become the mobile telephone manufacturer shipping the most telephones in one quarter in India. On 24 January 2014, Micromax became the first Indian mobile company to start sales in Russia. The Achievement Traditionally, the dominant mobile phone companies in India have been foreign giants—be it Nokia Oyj, Samsung Electronics Co., BlackBerry Ltd or Sony Corp. But through sustained marketing efforts and the introduction of products at lower price points but with the same specifications and contemporary design that their global counterparts offer, Indian handset makers have been steadily gaining market share. The forerunner among them is Micromax Informatics Ltd, which according to latest International Data Corp. (IDC) data had a 22% share of the Indian mobile handset market, second only to Samsung, which had a 26% share, and much ahead of other foreign competitors like Nokia, Sony and BlackBerry. The Strategy: A......

Words: 2054 - Pages: 9

Karbonn Mobile - Decision Making Process While Purchase

...price points as they all work on the same platform (most of them on android), look and feel very similar (Chinese or Korean manufacturers). So, Karbonn mobile will highly impact an under-grad student as they have become highly visible and a known brand that has a coolness linked to it (thanks to the glamorous IPL parties). More-over college going, even high school students today are very tech savvy as they have been exposed to technology and information at a much younger age. So, buy offering a 3G enabled phone with pre-loaded apps for facebook, gmail, google, twitter, youtube, android market, latest flash players with expandable memory options of up to 32 GB at a price of RS.6,999 (the only other company that offers all these features is Micromax but it costs Rs.2,000 more) Karbonn might become the obvious choice of purchase. [pic] Four types of Buying behaviour Purchase decision: Retailer push plays a very major role in the consumer’s decision. Currently mobile handsets are being sold through over a million multi-brand outlets in the country. To make sure that the Karbonn brand does not lag behind others, the company is offering extremely competitive margins to dealers. The company runs various incentive schemes and contests regularly to encourage the dealer community. The other source to purchase for a mobile phone is through internet sites like ebay, flipkart etc. Both the partners of the Karbonn mobile company have been distributors of mobile phones and other......

Words: 2363 - Pages: 10

The Predicament Called ‘Value Creation’ for Today’s Customers

...relationship management (CRM), Customer Lifetime Value (CLV) metrics, Customer Centric organization models, customer retention, customer care etc. And we see the poor customer is still the most dissatisfied lot. Customer value, in its most basic form, is merely the difference between the benefit receive from a product and the cost associated with that product. But the challenge for a marketer today, is to identify what value his product/service delivers to his target customer. Is it products like Micromax mobiles which offer rich features at an affordable price? Well, then where is marketing required! Any product that is high in features and less on price would sell. But, will the average customer, who has disregarded a Nokia for a Micromax, pay a premium price for one of the last tickets for a world cup match? Or may be a souvenir autographed by his favorite cricketing hero? One may argue that these items are rare or in limited supply. But wouldn’t a person who possibly bought a Micromax, because it was reasonably priced, not go to Café Coffee Day and end up paying a premium price for a cup of coffee? Or wouldn’t he spend on Levis jeans or Reebok shoe or Van Huesen shirt or a Parker pen? The challenge Page | 3 for a marketer today is not to identify when a customer exhibits complex buying behavior or habitual buying behavior or variety-seeking buying behavior or dissonance reducing buying behavior. The challenge, rather, is what ‘values’ his product/service creates that......

Words: 2371 - Pages: 10