Name Pradyumn Bisht

Semester 5
Roll No. 1629
Subject CMA

Ans1.

Hyper competition can be defined as a scenario or process wherein the frequency, boldness and
aggressiveness of the dynamic movement by the players accelerate to create a condition of
constant disequilibrium and change. The market stability is threatened by short product life-
cycles, short product design cycles, new technologies, frequent entry by unexpected outsiders,
repositioning by incumbents and tactical redefinition of market boundaries as diverse industries
merge. The environment escalates towards higher and higher levels of uncertainty, dynamism,
heterogeneity and hostility of the players

Today the Business environment is highly volatile. Constantly going changes with the
introduction of new advanced technologies which render the old technologies and products
obsolete and redundant

I. Music Industry

The dawn of the 21st century witnessed the advent of CD and portable storage devices. Which
was a welcome change from the cassette MP3 players as it had added benefits when compared to
old devices and came with additional features.

Apple went a step ahead when it introduced the Apple IPod which revolutionized the face of
Music Industry globally. There was no need of a CD or a cassette. This extraordinary device
became the automatic preference of music lovers as they colud store several thousand songs in
the palm of their hand. However not everyone could afford this expensive premium device.

Then came the Age of Smartphone which revolutionized every day to day activity of human
beings. Now there was no need for a separate music player all music could be accessed free on
online streaming platforms like spotify, saavn a stark contrast to when earlier people had to buy
record labels to listen to music.

Also earlier the market players like Sony and JBL dominated the headphone industry. The earlier
headphones were not at all comfortable. During the past 2 years Apple has launched variants of
portable Ear pods, which is a preferred choice of GenZ and has made the technology wired
earphones almost redundant. Various companies have followed the footsteps of Apple like sony,
jbl, Samsung etc.

In the near future these portable headphones technology might also become redundant as Elon
Musk has announced that he has come up with a chip which would polay music directly in our
brain .
 II. Movie Industry

Going to cinema for watching newly released movies was the favourite pass time of the people.
However with the Covid Pandemic the future of major cinema companies like PVR, Carnival
seems very uncertain as the governments have imposed bans on cinema halls to stop the spread
of Viruses.

OTT platforms like Netflix, Amazon Prime, Disney Hotstar have capitalized on this situation as
the new films are being released on these platforms.

III. Telecom:  While mobile users and usage grew and Jio gained 30% revenue market share
(Sept), customer prices fell sharply, other industry players lost subscribers, de-grew revenues and
saw drops in profits.
o In today’s scenario, while consumers and govt. are benefiting with low prices and
high tax revenues and levies resp., network operators are under pressure on costs and profits. The
4 player structure should survive, and market shares may stabilize for all players, once prices
correct. However, this may take at least a year.

IV. In today’s dynamic business environment, the car manufacturers and financial
intermediaries ( Bajaj Finserv ertc) are forming alliances to make it easier for the
customer to purchase as the finance and product are easily available to the customer.
Ans2.

I. Rise in Cocoa Price beans

-The rise in price of Cocoa beans can be tackled by promoting the growth of Cocoa in the
southern states of Kerala,Karnataka and Andhrapradesh.

 Mondelez can go for procuring cocoa beans from these local famers , this would also
weed out the problem of middlemen and Mondelez could price their product at a
competitive advantage than the other players in the market.
 MOndelez can enter into agreements with the state governments to procure the supply of
Cocoa , this would be a win win as it would ensure rise in employment for the
governments and cocoa beans being procured at a cheaper rate.

II. Transportation and Storage limitation in Rural Areas

 The threat of storage could be tackled in the rural areas by providing solar
powered refrigerators. As we all know how the Modi governement has stressed
on solar energy, with solar panels being provided at subsidy in rural areas so as to
ensure 24x7 electricity. Mondelez can capitalize on this solar power movement
 and procure solar panels at a cheap rate, which would be an investment for the
future as well. Mondelez can list this as one of it’s CSR activity.
 The threat of transportation can be tackled by maintaining a warehouses in a
district which are in vicinity of manjority of villages
III. Lockdown and Legal Restrictions
 Now that the 5 month period of Lockdown is over and the unlock stage is on Pan
India this won’t have much effect .
 Moreover ensuring sufficient inventory levels for production.
IV. Health Consciousness
 5 star is perceived to be too sweet . What Mondelez India can do is add 5% dark
chocolate in their product, it would ensure that the sweetness levels are toned
down a bit and also the therapeutic effects of dark chocolate would be an X factor
for attracting he health conscious consumers
V. Restriction on Import of Cocoa Beans
 Mondelez would have to focus on procuring cocoa beans from the local farmers
and states.

VI. Reduction in production of Cocoa due to deforesting

 Mondelez should promote sustainable farming among the farms from where they
procure beans