Group 3

Divyanshu Shekhar A009

Dristi Agarwal A010

Payal Bandyopadhyay A023

Pushkar Tandon A026

1. What is your opinion of BPLs decline?

There were several Internal and External factors that led for BPL’s
decline:

 They failed to estimate the impact of globalization and were not able to
assess that they were not prepared for the global competition.
 growing their business into a few disconnected territories was not an
appropriate expansion process.
 BPL failed to have financial discipline. They Invested in new ventures
having long gestation period.

2. BPL insisted on technology acquisition also instead of mere partnership?

Was it a smart move?

Being self-reliant in terms of technology would have given an edge to BPL

against its competitors in long term but unfortunately several factors worked
against BPL on this move. Firstly, financial condition of BPL was not good and
technological acquisition would have added to already soaring debts of the BPL.
Secondly, BPL didn’t have infrastructure to support R&D internally so it would
be difficult for the company to sustain the technological edge even if it acquires
different technologies.
3. BPL could not withstand the international competition. What were the
reasons. What would you do to counter the debacle?

The reasons why BPL could not stand the international competition are:

 With economic liberalization, global brands like Samsung and LG posed

a threat to BPL as these global brands were producing products at
economies of scale and sold heir product at lower cost that BPL.
 BPL did not have a clear strategy for growth in consumer durables.
 BPL did not invest much in R&D of the product so could not match up
with rapid technological changes brought by global competitors.
 International brands focused on customizing their products as per the
local needs thus were able capture larger market share.

Steps to counter the debacle:

1. To have a clear structure in the family run business, so as the vision of the
company is clear.
2. To invest more in R&D and not in unrelated sectors.
3. To make customized products for the local Indian market.