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Basic Concepts of Strategic Management

- Few Strategic Examples

Prof. Saptarshi Mukherjee


KLE Society’s IMSR, Hubli.
EXAMPLE
• WATCH
Example 1
• HMT Watches Vs Titan
Solution
• Strategic Vision of “Technological Up
gradation”
Example 2
• BSNL Vs Hutch (Vodafone) Vs Airtel vs Reliance
Jio
Solution
• Jio Strategic Vision – Affordability for everyone

Strategic decision was based on product availability, cost reduction,


affordable.
Facts and Figures
• Jio gained 130 million subscribers after only 12
months, or more than 10 percent of the
market. The incumbent operators including
Airtel and Vodafone have seen their profits
and market shares dwindle.
Example 3
• Idea Vodafone Merger
Solutions
• Vodafone has completed the merger of its Indian
mobile business with local rival Idea Cellular, creating
the country’s biggest telecoms operator with more than
400m customers.

• The deal was agreed in March 2017 but it took more


than a year to secure regulatory approval.

• Strategic Reason: To beat the competition of Jio. Again


a strategic decision.
Example 4
• Air India Vs Spicejet Vs Indigo Vs
Kingfisher(Airlines)
Kingfisher Airlines failure
• Owned by United Breweries Group

• Low Cost

• Loan default of 9091.40 cr Nov 2015

• 1600 cr to SBI, 800 cr to PNB, 800 cr to IDBI, 650 cr to


Bank of India, 550 cr to BOB, 410 cr to Central Bank etc.
• Has Globalization and Privatization played any
role of Strategic Change for Companies?
Globalization
• Need from Customers changed and increased
with affordable and reasonable cost
• Change from normal product to better products
• Jio – faster network – shift from 3G to 4G
• Titan – automated watches
Examples
• HMT, BSNL, Air India, Idea Vodafone etc

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