Assignment: Individual Assignment 4 - Philips: Lighting Up Eden Gardens
Assignment: Individual Assignment 4 - Philips: Lighting Up Eden Gardens
Assignment: Individual Assignment 4 - Philips: Lighting Up Eden Gardens
A Report submitted to
By
Vinay Kumar
Section B
On
23-08-2020
This submission is my work and my work alone. I have not taken any help from any internet
or other sources (other than my notes, course pack, and textbook) or from any other person to
arrive the answer.
Q1. What are the key value elements that Philips can list out for CAB?
Ans. The key value elements that Philips can list out for CAB:-
1. They can come up with the innovative idea to solve the biggest challenge of casting
shadows from towers onto the pitch during falling daylight. They can design the
placement of towers so that no matter what where the sun is no shadows would cast on
pitch.
2. Built-in-reflectors in the lighting system will reduce glare. They should also show the
cutting edge technology of efficient light scattering systems which can even cut through
semi-transparent objects and reduce glare.
3. They can draw their attention towards the qualitative benefits of Philips brand reputation
such as reduce glare will result in a high-quality broadcast of cricket. Also, spectators in
the stadium will get enhanced viewing experience due to uniform lighting.
4. Patented optics they have which delivers the greatest energy efficiency and exceptional
lighting levels
5. Philips can provide five years maintenance contract offer along with the bid. Their
competitor prices are low for bid. So, it would be very difficult for them to provide a
maintenance offer with the bid.
6. Ease of installation and replacement of lamps with Philips lighting system. Also,
Installation and maintenance support will be provided by experts
9. Philips lamps have a longer life which will reduce the replacement cost of lamps and
improve reliability.
Q2. Who are the different stakeholders and what are their interests?
1. CAB’s Chief:
2. Sponsor:
iv) It should be environmentally friendly. So, it will help to enhance the brand image of
sponsors through its association with the company of the lightning system.
3) Cricket Players:
In addition to its interest in media persons, spectators and environmentalists also have to be taken
into account. For media persons lightning system should be optimized for television
broadcasting. For spectators, it should produce less heat with good visibility. And
environmentalist wants it should be eco-friendly and consume less power.
Q3. Should Sen submit a bid or not? Provide reasons to support your answer.
Ans. Sen should submit bid. Profitability, Capability, long term strategy and risk assessment
support the decision to bid.
Profitability: Philips is charging 5cr whereas their competitors are charging 1.5cr. Philips is
competing on the basis of value-based costing instead of cost-based pricing. So the profitability
margins will be higher in comparison to their competitors. The focus of their strategy should
change the mindset of the buyer from the low price bid to the savings from the value of solution.
Capability: Philips has a 70% market share in lightning a football stadium. But they had never
done lightning a cricket stadium. The company is capable of doing the work as they have gained
expertise from lightning a football stadium and being a leader in that market. Also their skilled
employees and manpower, world class equipment, other resources and innovative ideas to solve
problems ( design the placement of towers so that no matter what where the sun is no shadows
would cast on pitch) will ease the bidding and installation process.
Long term strategy: Philips should look towards the long term benefits of this contract.
Winning this contract and successful completion of it will open a lot of new doors of opportunity
in this new market of lightning rocket stadium.
Risk assessment: If they don't bid then the opportunity of losing the customers of the new
market segment is high. Because the other player will come in and build relationships with the
CAB. This would increase their potential of winning other bids in the future. if they go with the
bid then they may have some problems due to the leftist organization and meeting timelines of
project execution can be a challenge. Minor mistakes, delays, subsequent maintenance by their
subcontractors will a challenge too. But all these problems will be a challenge for other
competitors too.