1|Page Micromax Informatics Limited

(Case Study of Business policy and strategic management: Amity Business School Lucknow)

Micromax Informatics Limited is one of the leading consumer electronics company in India, and
the 10th largest mobile phone player in the world. Over the past decade, Micromax has
pioneered the democratisation of technology in India - by offering affordable innovations
through their product offerings and removing barriers for large scale adoption of advanced
technologies. Micromax is currently the 2nd largest smartphone company in India. Micromax is
a brand which is close to the heart of the youth, and celebrates the vibrancies of life and
empowerment.

Products

Micromax products have become an extension of the Indian youth's lifestyle and dynamism. The
company has many firsts to its credit when it comes to the mobile handset market; including the
30-day battery backup, Dual SIM Dual Standby phones, QWERTY keypads, universal remote
control mobile phones & first quad-core budget smart phone. The brand's product portfolio
embraces more than 60 models today, ranging from feature rich, dual-SIM phones, 3G Android
smartphones, tablets, LED televisions and data cards.

Micromax sells around 2.3 million Mobility Devices every month, with a presence in more than
560 districts through 1, 25,000 retail outlets in India.

Network & reach

With sales presence across India and global presence in Russia and SAARC markets, the Indian
brand is reaching out to the global frontier, with innovative products that challenge the status
quo.

Vision

To be amongst the top 5 mobile device brands in the world.

Mission

We will adapt and innovate to provide unique consumer experiences, based on:

Strong, engaged customer communities

Insightful analytics
Win-win partnerships
World-class capabilities
2|Page Micromax Informatics Limited
(Case Study of Business policy and strategic management: Amity Business School Lucknow)

Core Values-

1. Customer-first
Putting the customer first when taking decisions
We don't invest in things that don't matter to customers

2. Entrepreneurship
Identifying opportunities, being nimble, passionate and taking risks

3. Inclusiveness
Being respectful, collaborative and embracing diversity

4. Execution
Managing by facts, cross-functional working, end-to-end ownership
and speed / timely action

Challenges-

1. Rising competition – There are many companies vying for the smart phone
market looking at the amazing market potential. The recent entrant is motorola
which has increased its product portfolio thereby attracting new customers.

2. No originality – Consumers perceive Micromax to be a “me too” product or an

imitating brand. Which is actually true!! Although Micromax gives unique
features, there are hardly any original smart phones or features introduced or
innovated by Micromax. All of them are imitated from Samsung or Apple. Thus
the originality in Micromax phones is missing.

3. Doubt about the main parts – With low pricing, comes the nagging doubt of
whether the phone is actually using good parts or not. In the recent years China
has become comparatively reliable when it comes to electronics. However, the
main parts of the Micromax smart phone are still under scrutiny. The screen of
Micromax is known to break at slightest pressure and there are similar other
complaints about Micromax.

4. Poor brand equity – The reason for the success of Samsung and Apple in the
Smart phone market is their brand equity. The Smart phone market is for the A
grade customers. Without brand equity, these smart phones would not have fared
so successfully in the mobile market.

5. Price competition – Price competition can affect Micromax in two ways.

Any company can rise up tomorrow which gives phones at even lesser prices than
Micromax and still give the same features.
3|Page Micromax Informatics Limited
(Case Study of Business policy and strategic management: Amity Business School Lucknow)

6. Due to increasing competition and poor hopes of catching up with Apple or

Samsung, Micromax suffers in its margins heavily thereby taking a hit in the
bottom line of the company.

Business Scenario of Micromax-

Market Expansion: Entering in developed nations like US & European nations will be
the future strategy of Micromax which will bring advanced capabilities to even home
nations & this will help Micromax in creating trust among its users.

Penetrating the Urban market: Further penetration in the urban market just like they
have done in rural market will help in the growth of the company.

Improving the brand perception: Working on changing the brand positioning will help
the company in changing its brand image in the urban markets where it is perceived as a
low quality mobile.

Competition from national & global players: Handset market is going through intense
transformation & all the national & international players are leaving no stone unturned to
increase their market share. Price wars & eating up each other market share is a common
scenario.

Dynamic tech environment: Continuously changing technological environment can be

serious threat to the Micromax. Since already established players like Samsung, LG etc.
can cope with this, it will difficult for Micromax to handle this challenge.

Replication of business model: The strategy used by Micromax is itself commendable

but lots of other Local & Chinese handset mobile makers like Geonee, Lava etc. can
imitate their business models which will have adverse effect on existing players and
Micromax will not be an exception in such a scenario.

Question1: Which grand Strategy should the Samsung adopt and why.
Question2: Do the ETOP and SWOT analysis of Micromax.
Question 3: Use GE nine cell matrix to design the corporate strategy for the Micromax.
Question 4: Do the competitor analysis of Micromax using Porter’s 5 forces model.