INTRODUCTION OF TITAN WATCH:-

Titan was incorporated in 1984 through a joint venture between the Tamil Nadu Industrial
Development Corporation (TIDCO) and the TATA Group. Though its initial objective was to
create a watch for every Indian, it went on to become the fifth largest integrated watch producer
worldwide. They export watches to about 32 countries around the world.

Product innovation is at the heart of what it does and led to the creation of the Edge, the
world’s slimmest watch.

The I/O model

The I/O model suggests that above-average returns are earned when firms are able to
effectively study the external environment as the foundation for identifying an attractive industry
and implementing the appropriate strategy.
The wrist watch segment accounts for around 80% of the Indian timepiece market. The wrist
watch market in India was valued at INR 94.55 Billion in 2018, and is expected to reach INR
192.74 Billion by 2024, expanding at a compound annual growth rate (CAGR) of ~13.21%,
during the forecast period (2019-2024).

The organized players currently command 40 per cent of the industry and the rest 60 per cent by the
unorganized segment.

I/O MODEL study the external environment OF industry, external environment explain by porter
five force model and PESTLE analysis which is described below.

1) PESTLE
2) PORTEL

INTERNAL FATOR OF ORGANIZATION EXPLAIN BY

1) RESOURCE BASED MODEL

2) VRIO MODEL

RESOURCE BASED MODEL

The resource-based model assumes that each organization is a collection of unique resources and
capabilities. The core assumption of the resource-based model is that the firm’s unique
resources, capabilities, and core competencies have more influence on selecting and using
strategies than does the firm’s external environment.
There are 4 components to resource based model as below:-

1) Resource:-
2) capabilities:-
3) core competencies
4) competitive advantage

1) Resource: - Titan is subsidiary of the Tata group, resources includes land, labor,
material, capital and entrepreneur.
Material used to manufacturing the watch including plastics and alloy metals. Cases
can be made of either plastic or metal; watches with metal cases often include a
stainless steel backing. Microchips are typically made of silicon, while LEDs are
usually made of gallium arsenide, gallium phosphide, or gallium arsenide phosphide.

2) Capabilities: - At present the company has a capacity to manufacture around 6 million units

of watch cases so far. At present the company has a capacity to manufacture around 6
million units of watch cases so far.
3) Core competencies: - Bringing in good design, branding and retailing elements into
those sectors are its core competencies. Over the last 30 years, the company has
created and worked towards perfecting the art of experiential retail in India. It
has entered under-penetrated and unorganized markets and built a strong brand
presence across different product categories. The company seeks to enter
markets that have the 3 ‘U’s – Unorganized, Underserved and Underpenetrated.

4) Competitive advantage: - Titan has some inherent strengths in sales and distribution that
will be unmatched by the global players. Its competitive advantage lies in width of collection
and distribution strength. Titan sales footprint includes three main channels, World of Titan,
redistribution stockiest and department stores.