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    Case Analysis of Micromax

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    Gaurav Sharma
    Micromax is an Indian electronics company that emerged as the second largest mobile phone seller in India through strategies like offering low-cost, customized products; strong retail networks; and differentiating their products for various consumer segments. Through these strategies, Micromax grew from a small startup to having 18.4% of India's tablet market and becoming the 12th largest global phone manufacturer. However, Micromax still faces threats from increasing competition and replication of its business model.

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    Case Analysis of Micromax

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    Gaurav Sharma
    689 views17 pages
    Micromax is an Indian electronics company that emerged as the second largest mobile phone seller in India through strategies like offering low-cost, customized products; strong retail networks; and differentiating their products for various consumer segments. Through these strategies, Micromax grew from a small startup to having 18.4% of India's tablet market and becoming the 12th largest global phone manufacturer. However, Micromax still faces threats from increasing competition and replication of its business model.

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    Micromax is an Indian electronics company that emerged as the second largest mobile phone seller in India through strategies like offering low-cost, customized products; strong retail networks; and differentiating their products for various consumer segments. Through these strategies, Micromax grew from a small startup to having 18.4% of India's tablet market and becoming the 12th largest global phone manufacturer. However, Micromax still faces threats from increasing competition and replication of its business model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    689 views17 pages

    Case Analysis of Micromax

    Uploaded by

    Gaurav Sharma
    Micromax is an Indian electronics company that emerged as the second largest mobile phone seller in India through strategies like offering low-cost, customized products; strong retail networks; and differentiating their products for various consumer segments. Through these strategies, Micromax grew from a small startup to having 18.4% of India's tablet market and becoming the 12th largest global phone manufacturer. However, Micromax still faces threats from increasing competition and replication of its business model.

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    CASE ANALYSIS OF MICROMAX

    GAURAV SHARMA GINNY AGARWAL HIMANSHU BANSAL

    INTRODUCTION

    This case is about Micromaxs growth strategy. How the company had emerged and how it had reached to such a position?

    Various strategies adapted by the company.


    What is the outcome of their efforts by adopting the strategies?

    Founder of Micromax : Rajesh Agrawal, Sumeet Arora, Rahul Sharma, Vikas Jain

    HISTORY

    Indian consumer electronics company located in Gurgaon. Founders - Rahul Sharma, Rajesh Agarwal, Sumeet Arora, Vikas Jain.

    Founded in 1991.
    Products are Mobile phone, smartphone, tablet computers, datacards, televisions. Revenue was US $ 626 million in 2012. In 1991 Micromax focused on reselling and distribution of hardware equipments.

    Contd
    Became IT software company in 2000working on embedded platforms. In 2008, entered mobile handset business. 24% market share in the smartphone segment in India as per the CMR
    report for April 2013.

    STARTUP STAGE
    Mobile handset maker is already the countrys second-largest mobile phone
    seller.

    When company started its operation in telecommunication products, the


    country was missing a player who can cater to Indian tastes and flavours.

    Micromax began speaking to local customers to identify their needs to


    strengthen their conviction.

    INTRODUCTION OF PRODUCT

    First mobile phone with a feature that battery lasts for 30 days. Best suited in India because of power deficiency problem. Then introduced various low end segment phones. For urban segment, first phone was bling. For youth the company introduced querty phones. Next era phone are the android phones with dual SIM connectivity.

    Leads the tablet market in India.

    STRATEGIES ADAPTED

    Value for money to customers Low pricing Differentiated products Consumer focused development Strong network of retailers and distributors Division of markets

    Management strategies like vendor selection

    MARKETING STRATEGY

    A 360 Degree advertising . Long battery targeting to rural areas.

    It is giving 5% commission to its distributers.


    Nokia usually gives a channel margin of 2 percent of which 1 percent is usually given away as discounts. The remaining 1 percent cannot sustain any business.

    PRODUCT STRATEGY
    Wide range of phones with different features and thus offering variety to the
    customers.

    Able to successfully identify the needs of customers and design products


    appropriately.

    Invested heavily in the product development.

    PRICING STRATEGY
    To serve the customers by proving them with lower cost. Value for money products. Micromax will adopt penetration pricing (selling product at lower prices) in
    the urban market.

    PROMOTION STRATEGY
    To increase visibility in the urban markets. High promotional expenses for:
    Hoardings and banners
    Advertising online Sponsoring in the social cause events

    DISTRIBUTION STRATEGY
    Under it company will have two models:
    Firstly, company have business to consumer (B2C) model.

    Secondly, company have business to business (B2B) model.

    MARKET SHARE

    CURRENT POSITION
    Entered the mobile manufacturing in 2008. On Tuesday entered into the home entertainment space with LED televisions and
    home theatre systems.

    Basic motive To touch the lives of consumers.


    Presence in nine countries. Focusing on the domestic market.

    Micromax has 18.4 per cent of the tablet market in India against Samsungs 13.3 per cent and Apples 12.3 per cent.

    Contd
    The third largest player with 8 per cent share and 12th largest manufacturer. Micromax topped the micro vendor rankings, shipping four million handsets
    worldwide and sales of 1.5 million handsets p.m.

    Funbook has tie-up for education related digital content from Pearson,
    Everonn and Vriti.

    For featured phones and tablets, the company has a three-tier distribution
    set-up, and for smartphones and LED TVs, its a two tier model.

    SWOT ANALYSIS
    STRENGTHS
    Innovative products and features Low cost of production Effective promotion campaigns OPPORTUNITIES Increase penetration in urban market Entry into international markets

    WEAKNESSES
    Weak brand image in urban areas Perception of low-quality Chinese brand

    THREATS Increasing competition from local and international players Replication of business model by competitors

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