The Case of Strategic Planning

Presented to: Dr. V. S. Pai

Case Presentation by: Section A, Term -IV Biswajita Mohanty (PGDM-13) Kushagra Anand (PGDM-37) Priyojeet Kumar (PGDM-61) Sakshi Gupta (PGDM-75) Saurav Singh (PGDM-78)

Ques1. What are the problems the company is facing? How should each of these problems be managed by the company management?
Problems: Company's market position is under threat. Market share of Coolex's flagship business is declining . Competition is intensifying for Coolex , its market was getting fragmented. Its competitor Airtemp was giving a tough competition, accounting for a 15 % share. Customers were becoming unpredictable. Lack of enthusiasm in the managers. Unable to recognize its core competency. Coolex's perception of its core strengths is not accurate.

Can be managed by:

Coolex's senior management team should look not just at Airtemp or other close rivals, but also at potential competition from the world's best air-conditioning companies. The company needs to couple innovation with incremental improvements to retain its competitiveness. A strategy-development process that requires the company to exploit the core competencies that can help it tap emerging market opportunities. Focus all its resources on the central airconditioning business

 Coolex needs to articulate medium- and long-term goals in addition to its 3-year goal. "The heart of strategy is not about beating the competitor; it is about creating value for the customer."So it should focus more on its customers than its competitors. Should identify Coolex's value-drivers . The company can diversify itself by entering into the manufacture of water-coolers and refrigerators--where Coolex can leverage its skills and brand-equity--to build a new business.

2. Should Coolex follow the company competitiveness approach to strategy formulation or the industrystructure approach? Justify your answer with arguments.

The approach that Coolex should adopt should be Competencies based. Mr. Jagmohan must determine those unique 2 or 3 competencies of the company and for that what was needed was the analysis of strengths and weaknesses of the major competitors so that they cannot be emulated by the competitors easily.

 The core competencies of the company would become the value proposition of the company and hence the market share can be enhanced by defining companies category membership in reference to the value proposition of the company.

Industry Structre Approach

Core competency approach

Uniqueness

Reactive

Not much to explore

Follow competitors

Not immitable
Focus on Customers

Focus on competior not on

customer

Internally sustainable