Micromax Case

8/9/2019 Micromax Case

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A Study on Micromax

By Group 6:

1. Harbinder Singh Deepak (MP12023)

2. Ishwari Prasad Gupta (MP12025)

3. idhi !u"ari (MP120#2)

#. $a%esh !u"ar (MP12053)

5. Sant&sh !r.Singh (MP120'3)


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Contents

1.Introduction

2.SWOT Analysis

3.Porter !e "orces analysis

#.$C% Matrix analysis

&.$enc'mar(in) exercise *it' com+etitors

,.-inancials

.Strate)y / An outsiders +ers+ecti!e


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1.Introduction

0e)istered as Micromax In"ormatics Pri!ate td. inMarc' 2 2444 *it' its re)istered o5ce in 6e* 7el'i.

Its 14t' lar)est mo8ile 'andset manu"acturer in t'e*orld 9 second lar)est smart+'one com+any in India.

:i(as ;ain in a recent inter!ie* *it'


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1.Introduction

Fiscal Year Key Events

2000 Company was incorporated as Micromax Informatics Ltd.

2001 Started software-commerce & embedded technoloyb!siness.

200" #lso de$eloped diitally a!tomated traffic informationsec!rity system for airport a!thority of India.

200% Started M2M distrib!tion for o'ia fixed mod!les

200( La!nch of self-branded prod!cts !nder the !mbrella of )Micromax*

200+ Started b!siness as mobile handset man!fact!rer

,ied !p with SL for " data cards

La!nched data cards with tie /!ps with #irtel

2010 ,ied !p with C & M,L for s!pply of data cards

Sponsored & co-sponsored many e$ents

-ormation o"

Micromax


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Product cate)ories

T'e +roduct ran)e !aries "rom dual SIM +'ones 3%Android smart+'ones ta8lets to


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2.SWOT Analysis

Mar(et s'are o" 1.J in Indian mar(et

1.Mar(et leader in "ast)ro*in) mar(et

Many +roducts +atented Introduced mo8ile *it' t'irty day 8attery dual SIMK*erty

(ey +ad 'andset

2.Tec'nical ex+ertise

Presence in &,4 districts t'rou)' 12&444 retail outlets inIndia

3.Stron) distri8ution 9net*or( reac'

Stren)t's


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2.SWOT AnalysisWea(ness

A ma?or c'un( o" industry is ruled 8y international +layersGSamsun) 9 6o(iaH 3J 8ecause o" a +rior 8i) customer

8ase

1.6e* +layer amon) t'elar)e 8i) ones


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2.SWOT AnalysisO++ortunities

Micromax "ocused on t'e 8i) c'un( o" unta++ed mar(et o"t'e rural area *'ic' *as an i)nored mar(et "or t'e 8i)+layers

T0AI estimates t'at ur8an mo8ile teledensity *ill reac'12&J 8y Marc' 241# *it' ur8an mo8ile su8scri8ersreac'in) &2 million and t'at t'e rural mo8ile teledensity*ill reac' ,4J 8y Marc' 241# *it' rural mo8ilesu8scri8ers reac'in) #, million

Wit' t'e s'i"t in income +yramid a))re)ate consum+tionin India *ill )ro* "rom 1 trillion in 244 to 4 trillion 8y

242& Also *it' mo8ile ser!ice +ro!iders reducin) t'e tariLs

GA0PD> A!era)e re!enue +er userH to access t'e mar(et o"lo*er Indian incomes 'as also +us'ed t'e mar(et o"'andset manu"acturers in t'e se)ment.o*e!er t'ou)'t'e A0PD is declinin) )radually o!erall re!enue remains*ell su++orted 8y t'e increase in su8scri8er 8ase.

1.Dnderstandin) o" Indianmar(et


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7eclinin) A0PD Trend


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2.SWOT AnalysisT'reat

T'e trademar(s are not currently re)istered under t'eTrade Mar(s Act 1 in India or in ot'er countries in*'ic' t'e rm o+erates and 'ence may lose its IP.

T'e rm also runs at t'e ris( o" not o8tainin) or rene*in)any o" t'e many a++ro!als licenses re)istrations or+ermits reKuired "or its o+erations

1.T'reat o" losin) IP ri)'ts

Its ina8ility to dra* money "rom +u8lic domain 'as +us'edt'e rm to*ards addin) de8t on its accounts *'ic' 'a!edeteriorated its ratin)s and 'a!e im+lications o" ne)ati!eco!enants on t'e rm.

2.7e+endence de8t ser!icedmodel


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7e8t on t'e 8oo(s


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3.Porter !e "orce model(a) Threat of substitute products-A lot o" acti!e researc' and

de!elo+ment into mo8ile +'one tec'nolo)y 'as 8een under*ay.

O+erators are u+)radin) t'eir net*or(s to ad!anced*ireless and ot'er "ourt'@)eneration G#%H ser!icesmany ne* entertainment and communications ser!icesare 8ecomin) a!aila8le.

6et*or(sin"rastructure

7e!elo+ment in miniaturiNed 'ard dis(s and as'dri!es to sol!e t'e stora)e s+ace issue 'as alreadyta(en +lace t'ere"ore t'is 'as +a!ed t'e *ay "or+'ones to 8ecome +orta8le music li8raries and +layerssimilar to an iPod.

Stora)e

Cell +'ones 'a!in) %PS +ositionin) may 8e cou+led*it' accelerometer +ositionin) to co!er under)roundor indoor +ositionin). T'is leads to ma+s and 'el+ndin) )rou+ mem8ers near8y or identi"yin)stran)ers. W'en cou+led *it' camera +'one t'e %PStec'nolo)y also allo*s users to ta(e a +icture or sna+t'e exact location and an)le at *'ic' t'e +icture *as

ta(en.

%PS


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3.Porter !e "orce model(b) Threat of new entrants

Since t'e ca+ital reKuirement to start t'e 8usinesses o"mo8ile manu"acturin) is 'i)' and "urt'er t'e mo8ile

manu"acturin) tec'nolo)y is also 'ard to acKuire t'et'reat o" ne* entrants is lo*. A )reat sum o" money must8e in!ested to attain t'e economies o" scale and it isdi5cult to enter t'e mar(et *it' existin) rms alreadyo+eratin) on cost and diLerentiation strate)ies


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3.Porter !e "orce model(c) Industry Rivalry

Cell +'one cost> Customers *ant8etter ser!ices and +roducts at a lo*ercost.

$undle "unctions into ?ust one cell+'one> -or exam+le


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3.Porter !e "orce model

(d)Bargainingpower ofsuppliers

Cell+'one manu"acturers loo( tosu++liers "or cell+'one +arts@c'i+s

8atteries Glit'ium 8atteries in mostcasesH sim cards etc.

As t'ereQs a lar)e num8er o"su++liers t'ey donQt 'a!emuc' +o*er in inuencin) t'edecisions o" cell+'onemanu"acturers.Manu"acturers can easily s*itc' toanot'er su++lier i" one raises t'e

+rice o!er t'e desired amount ort'e Kuality o" t'e su++lies 'a!e8ecome undesira8le.


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3.Porter !e "orce model

(e)Bargainingpower ofBuyers

Customers 'a!e a 'u)e inuencein t'e ty+es o" +'ones t'eir"eatures loo(s and "unctionalityt'at manu"acturers +roduce

Customer loyalty is almost

non@existent.

s*itc'in) cost is almost non@

existent.


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#.$C% Matrix

T'is met'od is *ell (no*n as Port"olio

Mana)ement Tool *'ic' is 8ased on Productli"e cycle t'eory.


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#.$C% Matrix

Stars

Can!asandroidSmartP'ones

Questionar!

$olt SmartP'ones

"ash "ow

Touc' ScreenGR3, R#&H

7ual Sim P'

GR142 R,,4H

#og

*ertyey+adP'ones

$ar P'ones

0elati!e Mar(et S'areGCas'%enerationH

i)'o*

Mar(et%ro*

t'0ateGCas'

Dsa)eH

1o*

i)'


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&.Bench$ar!ing %-Strategic $apping with respect to co$petitors(a) &ricing

T'e +ricin) +olicy o" Micromax is !ery a))ressi!e!is a !is its com+etitors. One o" its directors *as

once Kuoted sayin) t'at Our t'in(in) starts "romt'e consumer and so we decide the $ar!et

price 'rst and the device later. I" *e com+aresome o" t'e +o+ular +roducts o" Micromax *it' t'e

+roducts o" its com+etitors *e can see 'o*

Micromax is so a))ressi!e in its +ricin) +olicy.


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&.Bench$ar!ing %-Strategic $apping with respect to co$petitors(b) &roduct Innovation%- Micromax 'as a lot o" inno!ati!e and creati!e +roducts to its credit *'ic' )i!es its +roduct +ort"olio a !ersatile loo(. Micromax *as rst to introduce>

obile handsets

with daysbattery bac!up

obile handsets

with #ual SIcard

*andsetsSwitching

+etwor!s (,S- "#) using

gravity sensors

spirationalQwerty .eypad

*andsets/


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Micromax 'as 8een s'i"tin) its+ositionin) !ery "ast ascom+ared to its com+etitors.To start *it' Micromaxentered t'e mar(et in entryle!el and mid@se)ment mo8ile+'ones.. Ta(in) t'is ?ourney"or*ard t'e com+any no*

oLers t'e +'ones *it' latesttec'nolo)y in com+etition*it' t'e *orld leaders.

(c) ar!et&ositionin

g%-

Micromax also redened t'edistri8ution c'annel in t'emo8ile 'andset industry. Asa)ainst t'e com+etitors)i!in) its distri8utors a ,4@day credit Micromax deniedany credit to its distri8utors8ut oLered to su++ly 'andset

on re)ular 8asis to (ee+in!entories at a 8are

(d)Supply"hainanage$e

nt


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ey Ta(ea*ay "rom t'e nancial data


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ey Ta(ea*ay "rom t'e nancial data

Ratios Interpretations

1. 7e8t


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Strategy 0 1ro$ the outside


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T'an( you

Micromax Case

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Transcript of Micromax Case