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 TV’s 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:

1987 Nandlal Madhavlal Dhoot Aurangabad (Maharashtra)

 Founders:

 Headquarters:

 Area

served: • Home Appliance • Components • Office Automation • Internet • Petroleum • Power • Consumer Electronics

 Industry:

Consumer Durables, Oil and Gas etc.

 Share

Type: Ordinary US$4.1 billion (2008)

 Revenue:

 Net

Income: US$276 million (2008) site: www.videoconworld.com

 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

Experience the new revolution in freshness with Eco Fresh refrigerators.

VIDEOCON Air Conditioners

Intelligent technology, Intelligent design, Intelligent range. VIDEOCON Air Conditioners.

VIDEOCON Washing Machine

The power of Quanta Wash with the edge of U V Ray technology.

STRATEGIC BUSINESS UNIT
An SBU, in the strategic management sense, is normally an entire division in large corporations or one of the firms of a diversified company that carries out a certain business - in one of the business sectors the firm operates. This approach entails the creation of SBU's to address each market in which the company is operating.

SBU OF VIDEOCON COMPANY

KEY STEPS TOWARDS STRATEGIC 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 “e”products 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.

BCG MATRIX OF VIDEOCON COMPANY IN COMPARISON TO OTHER ELECTRONIC COMAPNIES

BCG MATRIX OF VIDEOCON COMPANY ACCORDING TO ITS PRODUCTS

SWOT ANALYSIS OF VIDEOCON COMPANY
The SWOT is a strategic planning tool to evaluate Strength(S) Weakness (W) Opportunities (O ) & Threats(T) involved in a project, in a business venture or in any other situation requiring a decision. The SWOT analysis is to explained with help of following diagram:-

PRODUCT LIFE CYCLE OF VIDEOCON

• 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
ARTICLE 1:- VIDEOCON HITS THE HINTERLAND
Author: - John A. Ronald Publisher: - Business World Year: - 1998 This article includes that the market share of Videocon International (VI) has declined to 22 percent from 27 percent in colour televisions (TV). its operating profit margins have fallen to 5.9 percent in 1998 from 7.5 percent in 1995. Its net profit had increased to Rs125.04 crore in 1997-98 from Rs82.3 crore in 1996-97. It gives a commission of Rs1,500-2,000 per TV set to its dealers, compared to Rs1,000 of Akai. VI sells more than 5 lakh black & white TVs per annum. The Videocon group's investment of Rs300 crore in real estate and other deals has declined considerably. VI has a research and development wing which has developed receivers, transformers and sound systems to suit the Indian conditions. VI offered a money back scheme for its Bazooka TVs. It sold 50,000 sets in a month under the scheme, resulting in 37 percent of the sales in the last quarter. It is trying to reduce cost by re- designing its production line to produce 18-20 products and models. The promoters, the Dhoots, have made an open offer for a 2 percent stake in VI at Rs140 per share. VI plans to buy Philip's factory in Calcutta. It has made capital investments and its depreciation has increased to Rs70 crore from Rs25 crore. Videocon Appliances, engaged in the manufacture of air- conditioners, refrigerators and washing machines, had posted a net profit of Rs15.1 crore in 1996-97 from Rs34.8 crore in 1995- 96. Videocon VCR, which makes video cassette players and recorders, has posted a net profit of Rs8 crore in 1996-97 (Rs37 crore in 1995-96). Videocon Narmada Electronics, which produces glass shells for picture tubes, incurred a loss o Rs7.7 crore in the 6 months ended September 1997. The Dhoots plan to merge this company with VI.

ARTICLE 2: - VIDEOCON LAUNCHES NINE MOBILE HANDSETS; EYES 1 MN SALE MONTHLY
Author: - S. kaither Publisher: - Times Of India Year: - 2010 In this article it has discussed that Videocon today launched nine mobile handsets and it plans to sell a million devices per month in the country same year. Videocon has been so far selling 2.5-3 lakh units a month. With the nine launches, its offering has risen to a total of 21 handsets from 12 at present. Thus the company plan to sell one million units every month as per the customer approachable price. At present, global brands like Nokia, Samsung, LG, and Sony Ericsson together with Indian players like Micromax have over 90 per cent market share. Mobile phone market has been one of the fastest growing markets. However, there is a big gap between the international brands and domestic ones. Videocon aimed to bridge the gap.

ARTICLE 3: - VIDEOCON TO EXTEND REACH IN WEST ASIA
Author: - Vinnit Alex Publisher: - Business World Year: - 2009

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.

ARTICLE 4: - VIDEOCON ADD COMFORTS TO YOUR LIFE
Author: - Shefali Roy Publisher: - Capexil Year: - 2009 Videocon is the Indian Multinational that is also known as the 'desi' brand which is favourite among Indians in terms of electronic appliances. It knows its customers from their nerves as they share the same roots. Since years, Videocon has been nurturing Indian homes and ruling in their hearts. The company has always served its nation with the latest technology rich in environment friendly features and prices according to the citizens. Its popularity among Indians made it the major shareholders of the electronic industry. Videocon has made them a serious brand by building the products that are available and easily approachable for every kind of person. Videocon Refrigerators are famous for the quality that they have in their architecture and enduring performance. A technical tie-up with Toshiba Corporation of Japan launched India's first world-class colour Videocon televisions.

ARTICLE 5:- VIDEOCON TO LAUNCH GSM SERVICES IN GUJARAT
Author: - Arnaw Kumar Publisher: - times of india Year: - 2010

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. Videocon’s 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.

ARTICLE 6: - VIDEOCON PLANS 500MW POWER PLANT IN MAHARASHTRA
Author: - Amritha Pillay Publisher: -Business Today Year: - 2010 The Videocon Group is planning to start a 500MW power plant in its homeland and is looking for suitable land as well as a coal-transportation solution in Maharashtra. It also expects to achieve financial closure for its Gujarat-based 1,200MW power plant by end-March. The financial closure for the first phase of 600MW has been achieved; the second phase’s financial closure is getting completed. After financial closure, power projects take another three and a half years to be commissioned.

ARTICLE 7: - SHAHRUKH KHAN AND MS DHONI TOGETHER FOR VIDEOCON AD
Author: - Krissy Publisher: Year: - 2007

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

BCG MATRIX Of Videocon according to its products:

• 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

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