Company Situation

Analysis

Prof: Abhik Mukherjee

Subj: Strategic Management
 Group Members
• Jaspreet Nagi - 05
• Ruturaj Oulkar - 08
• Kumar Sathe - 24
• Viksheth Shetty - 26
• Vijay Nimbalkar - 34
 Introduction – Company
Situation Analysis
• Determining how well a company’s present
strategy is working
• SWOT Analysis

• Assessing Firm’s Competitive Position

• Identifying Strategic Issues

Moser Baer India Ltd.
CASE ANALYSIS
 VISION
"Touching every life across the globe through high
technology products and services"

MISSION
We will drive growth through our excellence in mass
manufacturing.

We will move up the value chain through rapid

development of technology, products and services.

We will leverage our relationships, distribution, cost

leadership and "can do" attitude to become a global
market leader in every business.
 Introduction
• Founded-1983, New Delhi, by Technocrat Deepak Puri
as a provider of time keeping solutions.
• Technical collaboration with Maruzen Corp, Japan &
Moser Baer AG of Switzerland
• Currently the Second largest Optical Storage Media
company in the world.
• Success Owed to its business model – low costs, high
margins, high profits, reinvestment and capacity growth
 Strategic issues facing the
company
• Joint Venture did not succeed due to labour
problems.
• Changing technology

• Overseas players entering the Indian Market

 Strategic Planning

• Company realized that its current strategy

is not working and its margins are under
pressure.
• Labor problems added to their strategic
woes
 The Way Out…
• Company discontinued its joint venture with Maruzen
Corporation – Japan
• However it kept the alliance with Moser Baer AG and
rode on the brand recognition it enjoyed.
• It moved into manufacturing of floppy disks in 1986.

• Changes in storage media technology ensured that the

company move into the Recordable Compact Disc
(CD-R) market in late 1990s
 The Way Out…
• It setup a manufacturing plant which had
an installed capacity of 150 million units.
• The manufacturing plant could also
produce DVDs.
• In 2005, Moser Baer India Ltd, moved into
the high growth business of solar energy
and Photo Voltaic technology
• Effective Diversification has become its core
competency
SWOT ANALYSIS
 STRENGTHS

• Cost Leadership
– 10%-15% less expensive than nearest rival.

• Geographical proximity to key markets.

• Focus on R&D and Engineering

• Integrated Manufacturing
 STRENGTHS

• Strong tie-ups with all major global technology

brands
• Second largest manufacturers of optical media in
the world
• Market leader with a share of over 40% in India

• Technology focused

• Strong Supplier relationship

 WEAKNESSES

• High capital intensive business

• Logistic Management ~ Distribution

OPPORTUNITIES
• PV energy market will be worth $1 trillion in 15 years.

• Getting into production to sale of movies.

• Main brands looking for outsourcing opportunities.

 THREATS
• Technology ~ Obsolete
– Diskettes ~ Flash Drives ~ CD ~ Blue Ray ~ HD DVD

• High Prices of polycarbonate (PC) ~ Raw Material

• Capital Availability

• Anti Dumping Violations (Imports from China)

• Competition
– Japanese Firms
 Firm’s Competitive
Position
• Riding on its strengths and understanding on the
ever-changing storage media space, the company
currently enjoys a major share.
• It is the 2nd largest manufacturer of optical
storage media.
• Its low cost leadership style has helped it become
the market leader in India
 Future Outlook
• The annual demand for CD-R is expected to
fall substantially over the next few years.
• The demand for DVDs, Blu-Ray Disks and
Flash Drives is expected to increase two-fold
in the next 5 years.
• Innovations in the optical storage media field
will be the key drive to sustain growth.
Thank You!!!