...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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...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 large...
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...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...
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...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 presence...
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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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...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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...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...
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...Business Trip Report—India Market 2013 http://www.desay.com Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao Telecom Operators Overview GSM Network Analysis India Telecommunication Industry Overall Wireline & CDMA Circumstance Telecom Industry Analytic Overall Mobile Section In-depth Analysis Business Visiting Schedule Content Business Agenda Market Opportunity & Performance Product Composite Portfolio Integrated Marketing Proposal High-efficiency Sales Channel 2 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao India Telecommunication Industry Overall Telecom Operators Overview 3 Desay Electronics (Huizhou) Co., Ltd International Marketing Dept. Steven Zhao Telecom Section GSM CDMA Subscriber Base 672,628,200 201,547,466 874,175,666 Market Share 76.944% 23.056% Telecom 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...
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...Evolution of smart phone industry. How is the industry doing? The Indian mobile industry has evolved rapidly. In the first phase of 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%...
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...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,...
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...SCOPE OF STANDARD ESSENTIAL PATENTS AND THER RELATION WITH FRAND (FAIR , REASONABLE AND NON DISCRIMINATORY TERMS) SUBMITTED BY : ALIFAH AHMAD TABLE OF CONTENT Topic | Page No. | 1. Introduction | 3 | 2. Litigation relating to SEP | 5 | 3. Standard Essential Patent and their relevance to FRAND | 9 | 4. USA’s and EU’s approach to Standard Essential Patents | 11 | 5. India’s approach to Standard Essential Patents | 12 | 6. Conclusion | 12 | INTRODUCTION Indian jurisprudence on fair, reasonable, and nondiscriminatory (FRAND) licensing practices for standard-essential patents (SEPs) is at a relatively nascent stage. Unlike U.S. and EU courts, which have dealt with cases concerning calculating a FRAND royalty for a considerable time, Indian courts and the Indian antitrust authority—the Competition Commission of India (CCI)—have only just begun to decide such cases. In its initial orders in the first two antitrust complaints concerning SEPs, the CCI seemed to favor using the smallest salable patent-practicing component (SSPPC) as the royalty base to determine a FRAND royalty. However, in the short time since the CCI’s orders, the Delhi High Court has rendered contrary decisions in two SEP infringement suits. The Delhi High Court’s decisions use the value of the downstream product as a royalty base and rely on comparable licenses to determine a FRAND royalty. The Delhi High Court’s decisions are not only consistent with sound economic principles...
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...‘VALUE’. Today, Marketing, more than anything else, is to identify and create a product/service that would be valuable to a customer and convey that message to the customer effectively. Much has been written about customer orientation, customer 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...
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...I. Introduction: The assignment calls to analyze the decision making process of consumers while they purchase a certain product or a service using the principles of consumer behaviour. I have chosen to analyze the making process of consumers while they purchase a mobile device. The brand under study is Karbonn mobiles. In order to better analyze a consumers buying behaviour I will be working under two assumptions through the assignment. One – the consumer is an under-graduation student with low disposable income from India (cost conscious consumer). Two – he is interested in purchasing a touch phone which has a lot of “fun” features like apps for social networking, games, media centre etc., II. Karbonn Mobiles: The Karbonn mobile company was started in the year 2009 in Bangalore as a joint-venture between two Indian telecom powerhouses – the UTL group (United Telelinks Limited, Bangalore based) and Jaina Marketing and Associates (Delhi based). The UTL group is one of the leading suppliers of landline telephones, telecom equipment to cellular operators and in building and operating state wide area networks for governments (erstwhile supplier for the governments of Karnataka, Andhra Pradesh and Punjab). The company has also represented international mobile manufactures like Alcatel, Nokia, Samsung and Virgin in India either as regional or national distribution partners. The Jaina Group is a reputed distribution house with interests in telecom and consumer durables. The company...
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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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