Videocons 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

INTRODUCTION
Videocon is an Indian multinational established in 1987 by Nandlal Madhavlal Dhoot. The company deals in Consumer Electronics, Home Appliances, Colour Picture Tube Glass, and Oil & Gas. Videocon had a monopoly in washing machines in 1990s. But it had lost its market share due to entry of MNCs after liberalization.

Videocon followed strategic acquisition, low cost and multi brand

strategies to overcome the losing market share between 2000-2010.

SITUATIONAL ANALYSIS
Videocon wants to secure its market position. 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. Videocon still continue its multi-brand strategy and struggling to face the stiff competition.

PROBLEM IDENTIFICATION
Main problem: Videocon had lost its market share due to

entry of technologically strong MNCs like LG, Samsung,

Sony, Haier. 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.

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 use more effective promotion mix to promote its low price products. Videocon can make new tie-ups or acquisitions of technologically strong foreign firms to access their technology.

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.

IMPLEMENTATION
Being one of the largest manufacturers of television and its components, 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.

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. The flagship brand Videocon has lost market share due to the presence of Sansui in the same segment. Company should focus to make high technology world class products. Company should effectively utilize its advantages like manufacturing capacity, distribution network and R&D capabilities. Company should launch effective promotion mix.

CONCLUSION
At present scenario due to globalization, 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.

Thank You