NADAR MAHAJANA SANGAM

S.VELLAICHAMY NADAR COLLEGE

An Autonomous Co-Educational Institution Affiliated to Madurai Kamaraj University
Re-accredited with “A” Grade By NAAC
NAGAMALAI, MADURAI - 625 019.
.

B.B.A Degree Examinations, Nov 2021

Course : Business Administration Part : III
Semester : V (CBCS) Maximum Marks : 75
Title of the Paper : Core – Case Analysis Time : 3 Hrs
Subject Code : 14183501

ANALYSE THE FOLLOWING CASE AND WRITE A REPORT

From mass marketing to making a passenger car against an individual order, the
Indian Automobile industry has come a long way. Now there are companies that
would deliver a premium car at a week’s notice, straight from the assembly line.
Wings, which started out in 1981, set the trend on the twin planks of fuel economy
and low maintenance cost and made fossils of all the stodgy, fuel-Guzzling models
prevalent at that time. Wings was targeted-at parameters like price, design,
comfort, mileage and of course, the aspirations.

In 2005, wings is in the same position as the companies it upstaged on its

debut. As compared to four manufacturers of passengers cars in the country,
offering a dozen models, in 1981, there are a dozen manufactures today offering an
incredible 112 models. And the company’s market share is down to 65% and the
marging are dipping wings net profits declined by 12% last year, as compared to a
10% increase the previous year. The company consciously built entry barriers. But
some of those are no longer sources of unique competitive advantage. Take, for
instance, the vendor development programmes it pioneered. With import tariffs
being progressively reduced, indigenization is no longer an entry barrier. None of
the competitors can match the brand equity, wings has built on the value. For
money proposition. While that equity still holds well, it has ceased to be a souce of
advantage, because the market, as a whole, has been witnessing a major
transformation.

A bulk of the inidan passenger car market is moving away from the low-end. The
bottom-priced, sub `.2.5 lakh market, which wings built and nurtured, and which it
dominated all these years, is beginning to flatten out. The action is Gradually
shifting to the next price segment of between `.3 lakh and `.4 lakh. While the
bottom-end of the market grew by only 25% last year, the new segment
gren by as much as 160%.
Car loans, offered at zero interest, have narrowed the difference between one
price segment and the other in EMI’s to just a couple of thousands, providing a
strong incentive for customers to revise their aspirations upward.
N.M.S.S.Vellaichamy Nadar College, Nagamalai
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A major challenge lies in changing the mindset of people at wings, feels the
vice-president (HRD). People in the company are so conditioned to the idea of
market leadership that they can’t realize that the good times are over. Perhaps, it
helps to build some crisis scenarios so that everyone at wings gets charged. The
employees need to be educated on How the market has transformed, almost beyond
recognition, in the last few year and, therefore, how the old ways just will not Do.
It concentrated. On a single, low-cost model from which it sought huge volumes.
As years went by, it introduced 3 variants within the existing price band. The
strategy worked. A market characterized by low purchasing power lapped up all of
wing’s offerings.

Questions:
a) What are the areas of concern for the company?
b) What actions should the company take to regain the lost Ground?

c) Should the company continue with its VFM appeal? Justify.

d) What other options are available for wings to generate revenues?

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