Videocon’s Strategic Acquisitions to Become a Global Player in Consumer Electronics

PRESENTED BYANSHUMAN BHARATI BIMAL ROHIT SAURAV DAS

CONTENTS Introduction Situational Analysis Problem Identification Alternative Solutions Best Alternative Implementation Recommendation Conclusion .

Videocon followed strategic acquisition.INTRODUCTION Videocon is an Indian multinational established in 1987 by Nandlal Madhavlal Dhoot. . low cost and multi brand strategies to overcome the losing market share between 2000-2010. Colour Picture Tube Glass. and Oil & Gas. The company deals in Consumer Electronics. Home Appliances. But it had lost its market share due to entry of MNC’s after liberalization. Videocon had a monopoly in washing machines in 1990s.

Videocon still continue its multi-brand strategy and struggling to face the stiff competition. For that it is following different strategies like acquisition. low cost-high turnover to compete with high-tech global players. Due to decrease in import duties global players are entering in the market with high-tech products in competitive price. .SITUATIONAL ANALYSIS Videocon wants to secure its market position.

Sub problem: Videocon concentrated only on low price but not on technological advancement while global players introduced high-tech products with low price due to reduction in import duties. Sony. Samsung.PROBLEM IDENTIFICATION Main problem: Videocon had lost its market share due to entry of technologically strong MNC’s like LG. . Haier.

ALTERNATIVE SOLUTIONS Videocon can focus to launch innovative products with hightechnology by using their strong R&D capabilities. Videocon can make a better use of their low cost manufacturing capacity and foreign technology of acquired firms to compete against global competition. . Videocon can make new tie-ups or acquisitions of technologically strong foreign firms to access their technology. Videocon can use more effective promotion mix to promote its low price products.

BEST ALTERNATIVE Videocon can make a better use of their low cost manufacturing capacity and foreign technology of acquired firms to compete against global competition. .

Videocon has the advantage of economies of scale and low cost due to indigenisation. And it also has the advantage of R&D capabilities of acquired firm Thomson SA and Swedish giant AB Electrolux. . They should mix both the advantages and make high-tech products at very low cost than competitors.IMPLEMENTATION Being one of the largest manufacturers of television and its components.

. Company should launch effective promotion mix. Company should focus to make high technology world class products.RECOMMENDATION Videocon company should change the low cost and multi-brand strategy because it cause fight among themselves and deviate from actual competition with competitors. Company should effectively utilize its advantages like manufacturing capacity. The flagship brand Videocon has lost market share due to the presence of Sansui in the same segment. distribution network and R&D capabilities.

liberalization and rapidly changing technology competition among companies has become very tough. . And the companies who do not change themselves according to environmental and technological changes will become outdated and out of the competition. The companies should be ready to respond strategically to the changes.CONCLUSION At present scenario due to globalization.

Thank You .

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