A Comprehensive Study on Intex Technologies(India) Limited

Transcription

1 A Comprehensive Study on Intex Technologies(India) Limited Jayashri S PSG Institute of Management, Coimbatore Shahrukh Shamsudin PSG Institute of Management, Coimbatore 1. ABSTRACT : This journal elaborates on the strategies employed by Intex to establish itself in the Indian/Global electronics and consumer durables market. Through explanation of the current situation of the business environment and application of strategic management tools of macro and micro environment analysis, we chart the most appropriate strategy for Intex to take to maximise its returns in the VUCA challenges it faces. Key words : Intex strategy, product mix, Intex SWOT, CPM, BCG matrix 2. INTRODUCTION Our comprehensive study of Intex Technologies (India) Limited involves two stage process -Analysing the company and Deriving the strategic choices. In this study, we have compare intex with its competittors like Vivo and Micromax. Vivois chosen for study because it is the one company which has gained a huge market share in mobile hansets in India. Because of the penetration of Vivo, another Indian company which got affected is Micromax. Hence a comparitive competitive analysis is carried out among Vivo, Intex and Micromax and based on outcomes, strategies are proposed. 3. ANALYSING THE COMPANY It involves vision mission analysis, analysing the current position of Intex, their product mix, competitor profile matrix, Internal and External Factor evaluation and SWOT analysis. 3.1 Vision Mission Analysis The reason for the firm s existence is to make Intex a globally respected name by improving the quality of life of the people. Fig 3.1. Vision Mission statement of Intex 3.2 Intex s current position Intex has a sustained market share of about 12 % in mobile handset market across India till Q1 of But drastically its share has reduced to 8.5 % in Q2 of Jayashri S, Shahrukh Shamsudin

2 Fig INTEX MOBILE MARKET SHARE IN INDIA INTEX REVENUE IN CRORES FROM 1996 TO year revenue in crores Fig INTEX REVENUE IN CRORES 3.3 Product mix The product mix of Intex includes four major product lines namely, Consumer Durables, Smart phones, Computer peripherals and Accessories. The product line of Consumer durables includes LED TV s, Refrigerators, Air Conditioners, Air Coolers. The product line of Smart phones includes Aqua and Elity. The product line of computer peripherals includes cabinet, webcam, headphones, security cameras, mouse, keyboard, ups, datacards, currency converter, barcode scanner and other Accessories. Fig Product Mix of INTEX 349 Jayashri S, Shahrukh Shamsudin

3 3.4 CPM CompetitiveProfile Matrix The competitive profile matrix involves the comparison among Intex, Vivo and micromax on various factors suctors such as coverage, customer base, competitive pricing, product quality, financial position, mangement, market share, innovation and total revenue. On the basis of these factors, it is to be noted that vivo ranks first and is showing a good progress. Intex needs to strength this base and concentrate more on innovation. 3.4 Competitive Profile Matrix of INTEX 3.5 IFE - Internal Factor Evaluation S.NO KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE Strengths 1 Diversified Portfolio-Wide range of products available from smart phones to consumer durables to accessories / Marketing investment at 220 Crore through IPL / Revolutionary retail strategy / crore investment in synergistic startups / Increasing the consumer durables product line / Fig IFE MATRIX SHOWING STRENGTH OF INTEX 350 Jayashri S, Shahrukh Shamsudin

4 S.NO KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE Weaknesses 1 R&D focus more on standardization than on innovation 2 Slump in smartphone sales to 8.5% due to competition / / Termination of Gujarat lions IPL contract / The brand has less penetration across international markets / Total (strength+ weakness) Fig IFE MATRIX SHOWING WEAKNESS OF INTEX 3.6 EFE- EXTERNAL FACTOR EVALUATION S.No Key External Factors Weight Rating Weighted Score Opportunities 1 Expansion through Strategic Alliances / Government focus on Rural electrification / Emphasis on in-house R&D for Technology Development / Focus on Technology Intensive Products / Consumer durables industry to grow at an average of 10% in / % growth in accessories business for / Fig EFE Showing Opportunities of INTEX 351 Jayashri S, Shahrukh Shamsudin

5 S.No Key External Factors Weight Rating Weighted Score Threats 1 High investment by competitors / Maturing categories, products and services / Strong competitor growth / Losing market share to Chinese players / No GST reduction for consumer durables / Total (Opportunities + threats) Fig EFE Showing Threats of INTEX 4. DERIVING THE STRATEGIC CHOICES The strategic choices for INTEX are derived through Boston Consulting Group Matrix, TOWS matrix and the Grand Strategy Matrix. 4.1BCGAND TOWS MATRIX Table 4.1 INTEX portfolio with market shares Intex Portfolio Market share Market Relative Market for the share for market growth rate product/brand their largest competitor share % 1 Smartphones 8.50% 41.00% % 6,213 2 Consumer durables 23.00% 30.00% % 8,731 3 In-car accessories 12.00% 10.00% % Computer peripherals 10.00% 15.00% % 700 Revenue per annum in crores Note: Circle sizes represent revenue size 352 Jayashri S, Shahrukh Shamsudin Fig BCG matrix of intex

6 FIG TOWS matrix TOWS MATRIX Strengths 1. Diversified Portfolio-Wide range of products available from smart phones to consumer durables to accessories 2. Marketing investment at 220 Crore through IPL 3. Revolutionary retail strategy crore investment in synergistic startups 5. Growth in the consumer durables product line Weakness 1. R&D focus more on standardization than on innovation 2. Slump in smartphone sales to 8.5% due to competition 3. Termination of Gujarat Lions IPL contract 4. The brand has less penetration across international markets Opportunities 1. Expansion through Strategic Alliances 2. Government focus on rural electrification 3. Emphasis on in-house R&D for Technology Development 4. Focus on Technology Intensive Products 5. Consumer durables industry to grow at an average of 10% in % growth in accessories business for 17 Strength-Opportunities 1. Target the consumer durables market Weakness-Opportunities 1. Investment in R&D on consumer durables Threats 1. High investment by competitors 2. Maturing categories, products and services 3. Strong competitor growth 4. Losing market share to Chinese players 5. No GST reduction for consumer durables 4.2 GRAND STRATEGY MATRIX Strength-Threat 1. Lessen focus on the smartphone segment Weakness-Threat 1. Increase international Market penetration FIG GRAND strategy matrix of INTEX 353 Jayashri S, Shahrukh Shamsudin

7 JUSTIFICATION : Intex is been placed in 2 nd quadrant with weak competitive position ( when compared to vivo) but there is a rapid growth in the market for consumer durables. Hence, they have to concentrate on Product Development Market Development Horizontal/Vertical Integration Liquidation 5. RECOMMENDED STRATEGIES After mapping Intex with its competitors in the CPM and evaluating Intex s competencies with the IFE, EFE and the TOWS matrix. The following inferences are reached 1) Intex s hold at the smartphone segment is waning due to a stiffer competition from Vivo. While Vivo has a sustained marketing contract through IPL, Intex s has ended and will thus find it more difficult to increase the reach of its smartphones 2) With the release of the Indian budget of 2017, a major allocation has been made for rural electrification. This opens up a whole new prospect of tapping the rural market by providing affordable consumer durables. With these factors taken into consideration, Intex s best strategy would be to expand its consumer durables line in a cost effective way so as to tap the fortune at the bottom of the pyramid. 6. CONCLUSION Like every other business subject to Indian market conditions, Intex was and is subject to the volatilities that are part and parcel of the Indian business environment. The company found success by tapping the smart phone market at the right time but is now beginning to lose its way due to Vivo s strong pull in the market. Though it would be prudent to suggest a bolstered marketing stance for Intex smartphones, we are able to ascertain that focussing on a much bigger market potential of consumer durables is the more profitable option. 7.REFERENCES [1] Thompson Arthur, Strickland III A.J., Jain and Arun, 2013, Crafting and Executing Strategy. [2] Cooper and Schindler, 2013, Business Research Methods. [3] Ramaswamy V S and Namakumari S, 2013, Marketing Management. [4] John Mullins and Orville Walker, 2012, Marketing Management. [5] Hitt, Hoskisson and Manikutty, 2012, Strategic Management. [6] WilliamG. Zikmund, 2012, Business Research Methods. [7] Kotler P, Amstrong G, Agnihotri Y.P and Ehsan ulhaque, 2010, Principles of Marketing:A South Asian Perspective. [8] Alice M. Tybout, Calder J, Wiley, 2010, Kellogg on Marketing. [9] Panda K. Tapan, 2008, Marketing Management. [10] Jim Collins and Jerry I.Porras, 2002, Build to last. 354 Jayashri S, Shahrukh Shamsudin