Company Situation Analysis

Prof: Abhik Mukherjee Subj: Strategic Management

Group Members
‡ Jaspreet Nagi 05 08 24 26 34 ‡ Ruturaj Oulkar ‡ Kumar Sathe -

‡ Viksheth Shetty ‡ Vijay Nimbalkar -

Introduction ± Company Situation Analysis
‡ Determining how well a company·s present strategy is working ‡ SWOT Analysis ‡ Assessing Firm·s Competitive Position ‡ Identifying Strategic Issues

Moser Baer India Ltd.
CASE ANALYSIS

VISION
"Touching every life across the globe through high technology products and services"

MISSION
We will drive growth through our excellence in mass manufacturing. We will move up the value chain through rapid development of technology, products and services. We will leverage our relationships, distribution, cost leadership and "can do" attitude to become a global market leader in every business.

Introduction
‡ Founded-1983, New Delhi, by Technocrat Deepak Puri as a provider of time keeping solutions. ‡ Technical collaboration with Maruzen Corp, Japan & Moser Baer AG of Switzerland ‡ Currently the Second largest Optical Storage Media company in the world. ‡ Success Owed to its business model ² low costs, high margins, high profits, reinvestment and capacity growth

Strategic issues facing the company
‡ Joint Venture did not succeed due to labour problems. ‡ Changing technology ‡ Overseas players entering the Indian Market

Strategic Planning
‡ Company realized that its current strategy is not working and its margins are under pressure. ‡ Labor problems added to their strategic woes

The Way Out«
‡ Company discontinued its joint venture with Maruzen Corporation ² Japan ‡ However it kept the alliance with Moser Baer AG and rode on the brand recognition it enjoyed. ‡ It moved into manufacturing of floppy disks in 1986. ‡ Changes in storage media technology ensured that the company move into the Recordable Compact Disc (CDR) market in late 1990s

The Way Out«
‡ It setup a manufacturing plant which had an installed capacity of 150 million units. ‡ The manufacturing plant could also produce DVDs. ‡ In 2005, Moser Baer India Ltd, moved into the high growth business of solar energy and Photo Voltaic technology ‡ Effective Diversification has become its core competency

SWOT ANALYSIS

STRENGTHS
‡ Cost Leadership
± 10%-15% less expensive than nearest rival.

‡ Geographical proximity to key markets.

‡ Focus on R&D and Engineering
‡ Integrated Manufacturing

STRENGTHS
‡ Strong tie-ups with all major global technology brands ‡ Second largest manufacturers of optical media in the world ‡ Market leader with a share of over 40% in India ‡ Technology focused ‡ Strong Supplier relationship

WEAKNESSES
‡ High capital intensive business ‡ Logistic Management ~ Distribution

OPPORTUNITIES
‡ PV energy market will be worth $1 trillion in 15 years. ‡ Getting into production to sale of movies. ‡ Main brands looking for outsourcing opportunities.

THREATS
‡ Technology ~ Obsolete
± Diskettes ~ Flash Drives ~ CD ~ Blue Ray ~ HD DVD

‡ High Prices of polycarbonate (PC) ~ Raw Material ‡ Capital Availability ‡ Anti Dumping Violations (Imports from China) ‡ Competition
± Japanese Firms

Firm¶s Competitive Position
‡ Riding on its strengths and understanding on the ever-changing storage media space, the company currently enjoys a major share. ‡ It is the 2nd largest manufacturer of optical storage media. ‡ Its low cost leadership style has helped it become the market leader in India

Future Outlook
‡ The annual demand for CD-R is expected to fall substantially over the next few years. ‡ The demand for DVDs, Blu-Ray Disks and Flash Drives is expected to increase two-fold in the next 5 years. ‡ Innovations in the optical storage media field will be the key drive to sustain growth.

Thank You!!!

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