Phillips India : Bidding for floodlighting Eden Gardens

Disclaimer

“ This submission is my work and my work alone. I have not taken any help from any internet or
other sources (other than my notes, course pack, and textbook) or from any other person to arrive
at the answer.”
 1. What are the key-value elements that Philips can list out for CAB?

Philips is a electronics companies which is at the forefront of technology, holding 75,000

Intellectual property rights, 6000 design registration and 22000 trademark registration.

Philips proposed solution for CAB has many value addition in terms of energy-saving,
longevity and savings in the required lighting equipment. They offered a unique tower design
that would bend inwards at the top to increase the intensity of light falling in the centre of the
stadium. Philips is using a special alloy for coating the towers, which prevent them from
corrosion. Usage of twin power line, automatic fault detection system, fault detection system,
light intensity monitor, and controller system.

Philips is using a patented optics that have higher energy efficiency and good lighting levels.
All the lamps have a longer life compared to the competition. The lighting solution has lower
power consumption which brings more savings in energy. The Philips is using built-in
reflectors in the lighting system that reduce the glare. Philips provide an easy installation and
replacement of light equipment system which could save more money. An instant restart of
lighting during power supply disruption and installation and maintenance support is another
value element of Philips.

2. Who are the different stakeholders, and what are their interests?

CAB is a bureaucratic organization with a lot of influential decision-makers. The bid

committee consists of an evaluation committee and a review committee. Their primary
concern would be to obtain an economical lighting solution. They are looking for a minimal
total cost of ownership that should be environmentally friendly and maintenance-free. The
solution should be state of the art technology which is reliable with no breakdown during any
play. They need a permanent solution.

The sponsors of the game are looking for a lighting system which is very reliable and should
have the opportunity to advertise. It should be environmentally good and should increase its
brand image.

Sports players are looking for a reliable solution with no strain or irritation to the eye while
playing. It should provide good playing conditions at all times.

Spectators love to watch the match in a good lighting for an enjoyable game.

Media persons who want to record and broadcast the game in good quality, which is only
possible if proper lighting conditions are available

Environmentalists who like to see an environmentally friendly solution are other stakeholders
of this deal.
 3. Should Sen submit a bid or not? Provide reasons to support your answer

Sen should submit the bid. The following are the reasons.

1. Since this is a huge deal, not placing the bid is a significant setback for Philips. In
finance, since Philips is not going for low ball quotes. Instead, quoted a reasonable
price considering the value addition it is providing. But not placing will be like giving
up without fighting.
2. Philips has a dominant position in football stadium lighting with a 70% market share.
Entering into this deal, make sure that Philips will get more contracts from another
stadium in the future. Considering the potential growth in the sports like cricket, the
contract secures a good position for Philips in converting similar agreements across
the country.
3. The contract helps in having a long relationship with Philips with Eden Gardens. This
provides good future cash flows for different purposes like Maintenance, repair work
and other developmental works.
4. Performing well in this contract make sure that Philips will be on the good side of
BCCI. Future projects of BCCI will be open for Philips to grab.
5. In the Eden Garden project, Philips is experimenting with their new technologies and
a customized solution approach. The project undertaking will help Philips learn new
things from the experience and a more cost-effective solution in the upcoming project.
Other than that, the value-added approach can be marketed to give an edge over other
competitions. Hence it is an good path to take this project.