STRATEGIC ANALYSIS OF

NAME OF GROUP MEMBERS: B.Prabu (03) Sharad Jain (20) Saurabh Mahajan (28) Rahul Goyal (46) Nidhi Tiwari (55)

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YOUR ABILITY TO LEARN AND CHANGE FASTER THAN YOUR COMPETITION IS YOUR ONLY SUSTAINABLE COMPETITIVE ADVANTAGE
- Ajit Joshi CEO & MD Infinity Retail

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09 12 ´ Window Air 18.1 ´ Refrigerators 13. Growth rate of 11. Consumer Durable Colour Television ´ ´ Growth Rate (%) 08.35000 cr.INDUSTRY ATTRACTIVENESS ´ Consumer Durable market is over Rs.5% in 2008 ² 2009 Predicted growth rate 12% in 2009 ² 2010 The unorganized sector has occupied a major share in manufacturing and supplying VCD/MP3 which has grown by 25%.8 3 .8 Conditioners Washing Machines 18.

a 100% subsidiary of Tata Sons Croma is India·s first national. one of the world·s leading retailers provides technical and strategic sourcing support Croma outlets stock 6. specialist retail chain for consumer electronics and durables Woolworth. large format.CROMA PROFILE ´ Croma is promoted by Infiniti Retail Ltd. 4 with about 50 stores across India.000 products comprising 180 national and international brands under eight categories. ´ ´ ´ .

PERPETUAL MAPPING HIGH QUALITY CROMA VIJAY SALES HIGH PRICE UNORGANISED LOW PRICE LOW QUALITY 5 .

MERCHANDISE Large appliances ´ Small appliances ´ Computers and accessories ´ Music & DVD ´ Communication ´ Gamming ´ Home entertainment ´ Imaging ´ 6 .

SUMARIA. EZONE (IFB. L.G.. JBL) MIG VIJAY SALES. SONY MONY. VIVEKS (VIDEOCON. ONIDA) LIG UNORGANISED (ALFA. HEERA PANNA) 7 .TARGET CUSTOMERS HNI AB RO AD HIG CROMA. RELIANCE DIGITAL.

electrical equipment. gaming & music 8 .CORE COMPETENCIES ´ Access to wide variety of markets for competitors to imitate Pan India presence (8 cities and 50 stores) and 100 stores by 2010 ´ Difficult Technical and strategic sourcing support from the world·s leading Australian retailer. Woolworth ´ Higher merchandise mix in a refined way Computer accessories.

ANSOFF¶S PRODUCT/MISSION MATRIX Existing products New products CROMA CROMA Existing markets 1. Market development 4. Product development New markets 2. Market penetration 3. Diversification 9 .

GENERIC STRATEGIES 10 .

SWOT ANALYSIS 1. THREATS ‡ ‡ ‡ New entrants from oraganized retail Competition from grey market High labour turnover 3. STRENGTH ‡ ‡ ‡ ‡ ‡ Large formats with good ambience(Retail hot spot) Tie up with Australian retailer Woolsworth Strong SCM due to sourcing from abroad Strong financial support Brand equity 2. OPPORTUNITIES ‡ ‡ ‡ Pan India presence Innovations in technology Increase in customer disposable income 11 . WEAKNESSES ‡ ‡ Lack of experienced personnel Low in service quality 4.

VALUE CHAIN 12 .

PORTER¶S FIVE FORCE MODEL AND VALUE NET SUPPLIERS ‡ High Switching Cost ‡ High threat to forward integration ‡ High presence of substitutes ‡ Low importance of volume NEW ENTRANTS ‡ Economies of Scale ‡ Product Differentiation ‡ Capital requirements ‡ Switching Cost ‡ Cost disadvantages ‡ High Industry Growth Rate ‡ low Concentration ‡ High Fixed cost ‡ Low Switching Cost ‡ Low Product differentiation SUBSTITUTES ‡ High buyer propensity to substitute ‡ High switching Cost INDUSTRY RIVALRY ‡ Low Switching Cost ‡ High Profits ‡ Low product differentiation ‡ MALLS ‡ PRIVATE LABELS BUYERS COMPLEMENTORS 13 .

TETRA FRAME WORK MODEL: Threats from Imitation: ´ Easily imitable due to less government regulation needed. ´ Less product differentiation. ´ To open a consumer durable store amount needed is 1 to 4 crores . 14 . so anybody can start it and give local competition .

´ Making itself present in all important cities across india. ´ After sales services.Countering Threats from Imitation: ´ By Getting the important locations for its stores as it is one among the few pan india level players. 15 . and Low service requirement. ´ Providing technologies that benefit the customer through low power consumption. ´ Differentiation is possible as CROMA has its own private brands ´ The sourcing and technical support of woolsworth and IT infra structure from TCS has really upgraded.

(Straddeling) 16 .com ´ It can face substitution from other formats of electronics which deal with only one category(speality stores) Countering Threats from substitution: ´ Croma can launch its own version of E-commerce.Threats from Substitution: ´ Internet virtual stores like ebay. ´ Croma itself can launch its own formats which concentrate on a particular product category.

Woolsworth will launch its own electronics stores and croma will have trouble as its sourcing of products depends on wholly by woolsworth. Finally the numbers stores present will limit others stores from opening as all the demands are satisfied. Countering Threats from Hold-up ´ Opening stores in many cities. Second they will get the volume in sales which are necessary in wafer thin margin in this industry. ´ Launching its own private label. First they will enjoy first mover advantage. ´ The manufactures of electronics durables can themselves forward integrate to introduce exculsive showrooms. 17 .Threats from Hold-up: ´ Once government allows 100% FDI in muti brand retail. Customer can compare. this will aid in three ways. ´ By offering many brands in one place will make customer buying process convenient.

All ready Indian retail is has a challenge of finding good human resource. ´ CROMA can offer incentives which motivates the employees and keep them switching from one company to another. Countering Threats from slack: ´ Tata group can open colleges which can be one place stop for talented human resource. ´ The attrition rate in retail industry is high.Threats from slack: ´ Croma has differentiated itself by having a very efficient sales force which has good knowledge about product. All tata group companies can recruit from those colleges. 18 . In future it may find difficulty in finding human resource.

SCOPE HORIZONTAL SCOPE ‡LOGISTICS COMPANY GEOGRAPHICAL SCOPE ‡TARGET TIRE 2 AND TIRE 3 CITIES OTHER ¶s ‡NEW RETAIL FORMATS ‡E-RETAILING ‡COMBINATION OF DIFFERENT CATEGORIES ‡FRANCHISE MODE 19 .

g.STRATEGIC RECOMMENDATIONS Increase merchandise & sale of private labels over a period of time ´ In house after sales service ´ Display of new technological innovations (working of blue ray disks) ´ Strategic tie-ups with local companies (e. resorts etc for electronic and electrical items) ´ Should become a strong national force by acquiring Viveks.g Zapak games etc) ´ Explore B 2 B markets (e. Tie ups with hotels. ´ 20 .

THANK YOU 21 .

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