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SUBMITTED TO: MS. IMPREET KAUR SUBMITTED BY: ANCHAL DHAWAN MBA-LIT(IV) RT1804B33 REG. NO.: 10810204
INTRODUCTION TO VIDEOCON
Videocon is an industrial conglomerate with interests all over the world and based in India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world. The Videocon group has an annual turnover of US$ 4.1 billion, making it one of the largest consumer electronic and home appliance companies in India. Since 1998, it has expanded its operations globally, especially in the Middle East.
Today the group operates through five key sectors: Consumer electronics In India the group sells consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Videocon Group brands include Kenstar, Next etc. Mobile Phones In November 2009 Videocon launched its new line of mobile phones DTH In 2009, Videocon launched its DTH product, called 'd2h'. As a pioneering offer in the Indian DTH market, Videocon offered LCD TVs with builtin DTH satellite receiver with sizes 19" and 32".This concept in the DTH service is relatively new in the presence of other players like ZEE TVs Dish TV, Tata Sky, Airtel Digital TV and Reliance's BIG TV providing only the set top box. Telecommunication Videocon has subsidiary named Datacom Solutions Pvt Ltd which has license for Mobile Service operations across India. It is commercial launch on 7th march 2010 in Mumbai.
COMPANY BACKGROUND
Founded:
Founders:
Headquarters:
Area
served: Home Appliance Components Office Automation Internet Petroleum Power Consumer Electronics
Industry:
Share
Revenue:
Net
Web
VIDEOCON PRODUCTS
VIDEOCON LCD TV
Touch the true essence of multimedia entertainment with Videocon LCD TV & experience tv as you've never seen it before.
VIDEOCON Refrigerators
PLANNING
MISSION To delight & deliver innovative product through ingenious strategy intrepid entrepreneurship, improved technology, insightful marketing and inspired thinking about the future.
VISION To bring happiness in every home with global presence offering high quality eproducts to ease & enrich human life GOAL To provide a much higher level of service to all those who seek information
BCG MATRIX
In BCG Matrix product or business unit are identified as Stars, Cash Cow, Dogs, Question mark. BCG Matrix can use for resource allocation. The Matrix can be explained are as follows. Stars (high growth, high market share) Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash. Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept. Cash Cows (low growth, high market share) Profits and cash generation should be high. Because of the low growth, investments which are needed should be low. Cash Cows are often the stars of yesterday and they are the foundation of a company. Dogs (low growth, low market share)
Avoid and minimize the number of Dogs in a company. Watch out for expensive rescue plans. Dogs must deliver cash, otherwise they must be liquidated.
Question Marks (high growth, low market share) Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share. If the market share remains unchanged, Question Marks will simply absorb great amounts of cash. Either invests heavily, or sell off, or invest nothing and generate any cash that you can. Increase market share or deliver cash.
VIDEOCON
BCG Matrix
Stars (Appliances) Cash Cows (Mobile Phones & Telecommunication) Question marks (LCD) Dogs (Oil & Gas Division)
VIDEOCON LCD AT INTRODUCTION STAGE VIDEOCON APPLIANCES IS AT STAR STAGE VIDEOCON MOBILE PHONES & TELECOMMUNICATION SERVICES IS AT CASH COW STAGE VIDEOCON OIL & GAS DIVISION IS AT DOGS STAGE
REVIEW OF LITERATURE
As part of its strategic plans to become an established global player, Videocon group has decided to extend its operations in West Asia by January 1999. The operations are expected to be based in Dubai where it plans to launch its entire range of products. It has also decided to revive its operations in Indonesia which is affected by the South East Asian crisis. It has already entered into Bangladesh market by establishing its presence in Dhaka.
Videocon Telecommunications Limited is all set to launch its GSM Mobile services in Gujarat Telecom circle. GSM Mobile services will be launched initially in Ahmadabad, Anand, Ankeleshwar, Bardoli, Vadodara, Bhavnagar, Junagarh, Navsari, Rajkot, Surat, Valsad and Verawal. It will gradually expand its network in other parts of Gujarat. Videocons GSM SIM-Kits will be available in all the Next Retail outlets in the major cities of Gujarat. Currently Videocon Telecommunications Ltd has
commercial GSM Mobile services in Tamil Nadu, Chennai and Mumbai circles. It has planned to extend its services to all the major states by the end of this September.
Shahrukh Khan and Mahendra Singh Dhoni will swap their respective roles for the Videocon advertisement. ShahRukh Khan and MS Dhoni will first time appearing for a commercial. The idea behind it is that Videocon has created magic by bringing both the super stars together on a single platform to create a unique campaign. The core idea of the campaign is to celebrate the spirit of success - no matter the role life gives you, always play it big and emerge as a champion. It is heard that both the superstars, SRK and MS Dhoni gel pretty well on the set. Ogilvy and Mather (O&M) has created the Videocon ad.
CONCLUSION
Videocon is an industrial conglomerate with interests all over the world and based in India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world. Today the group operates through five key sectors: In BCG Matrix product or business unit are identified as Stars, Cash Cow, Dogs, Question mark. BCG Matrix can use for resource allocation. STARS (high growth, high market share) CASH COWS (low growth, high market share) DOGS (low growth, low market share) QUESTION MARKS (high growth, low market share) Consumer electronics Mobile Phones DTH Telecommunication
VIDEOCON LCD at Introduction stage. VIDEOCON APPLIANCES at Star stage. VIDEOCON MOBILE PHONES & TELECOMMUNICATION SERVICES at Cash Cow stage. VIDEOCON OIL & GAS DIVISION at Dogs stage.
REFERENCES
http://www.faqs.org/abstracts/Business-international/VIDEOCON-HITSTHE-HINTERLAND-THE-PICTURE-GETS-SHARPER-ATPHILIPS.html#ixzz0mh9ItA5G
http://www.faqs.org/abstracts/Business-international/VIDEOCON-TOEXTEND-REACH-IN-WEST-ASIA-RIDING-ON-SALES-VIDEOCON-H1NET-UP-AT-Rs6897-CRORE.html#ixzz0mhGjUyOC
http://www.articlealley.com/article_1199524_45.html
http://www.bpotiger.com/2007/11/shahrukh_khan_and_ms_dhoni_tog_1.html
www.highbeam.com/doc/1G1-149628585.html
www.liebertonline.com/doi/abs/10.1089/153056201750279584
www.article.wn.com/.../Videocon_launches_nine_mobile_handsets_e yes_1_mn_sale_monthl