micromax case
TRANSCRIPT
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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