Description
The multi-nationals have gained advantage
over domestic players of late. Even though
sales volume has shown a long-term growth,
there continues to be over-capacity
as production is outstripping the growth
in demand.Most of the raw materials are
available easily in India. Some
high-end raw materials such as
larger-size picture tubes for flat
TVs are imported.
Industry & Competiti·e
Analysis
Of The Color TV Industry In India
Presentation Map
Market
Predictions
Field
Interviews
Leaders
Industry
Analysis
Strategy
Industry Structure
Market Size Rs. 87 bn
Color TV’s – Rs. 80 bn
B/W TV’s – Rs. 7 bn
Haier Videocon
BPL Sansui
Sony Onida
Akai Samsung
Philips LG
PLS1 Analysis
Political
Lowering of customs/excise
duties post 90’s
Globalization driving
investment through FDI,
FIIs & JV’s
Economic
Increased urbanization
Increase in disposable
personal income
Easy & cheap availability of
consumer finance
Social
Burgeoning middle class
Double income families
Technological
India becoming a
manufacturing hub
Incorporation of top end
technology across product
range
Porter`s 5 íorces` model
Threat of entry 2.142857 Existing Rivalry 3.5
Economies of Scale 3 Numerous Balanced Competitors 4
Product Differentiation 2 Slow Industry Growth 4
Capital Investment 3 High Fixed Cost 4
Switching Costs 1 Lack of Differentiation 3
Distribution Access 4 Capacity Augmentation 3
Cost Disadvantage 1 Diverse Competitors 4
Govt. Policies 1 High Strategic Stakes 4
High Exit Barriers 2
Substitute products 3
Technological progress within the industry
Buyers moving up the value chain
Bargaining Power of Suppliers 3.166667 Bargaining Power of Buyers 3.25
Few Suppliers 4 Large Volumes 2
Substitutes Available 4 Significant Costs 4
Customer Importance 1 Standard Purchases 3
Importance of the Input 4 Switching Costs 3
Switching Costs 5 Low Profit 3
Forward Integration 1 Backward Integration 4
Input importance 4
Full Information 3
Ln·ironmental Analysis : Porter`s Model
Inter-firm rivalry - HIGH
The multi-nationals have gained advantage
over domestic players of late. Even though
sales volume has shown a long-term growth,
there continues to be over-capacity
as production is outstripping the growth
in demand.
Bargaining Power of Suppliers
HIGH
Most of the raw materials are
available easily in India. Some
high-end raw materials such as
larger-size picture tubes for flat
TVs are imported.
Bargaining Power of Buyers - HIGH
With the intensification of
competition in the Indian CTV
industry, the bargaining
power of the buyer has
increased. As compared with
the early-1990s, a consumer
can bargain more effectively
on price and service conditions.
Barriers to Entry - MEDIUM
In the CTV industry, although there are
not prohibitively high costs of entry,
the critical success factors are brand
image, brand allegiance, and
distribution networks.
Threat of Substitutes - HIGH
The CTV sector is characterized
by continuous technology advances
that may result in substitution
within the product category
% Market Share by Units sold (January - June 2004)
22.52
13.83
10.72
9.37
8.37
5.98
3.95
3.35
3.14
2.46
16.31
LG
Samsung
Onida
Sansui
Videocon
Philips
Akai
Sony
BPL
Thomson
Others
Source – The Brand Reporter, August 16-31
22.1
15.3
11.5
9.2
8.2
6.1
3.4
7.0
2.8
2.4
12.0
LG
Samsung
Onida
Sansui
Videocon
Philips
Akai
Sony
BPL
Thomson
Others
% Market Share by Value (January – June 2004)
Source - The Brand Reporter – August 16-31
20 “Conventional
21” Conventional
14” Conventional
29” Conventional
21” Flat
29” Flat
Market Share v/s Segment Growth (03-04)
M
a
r
k
e
t
S
h
a
r
e
Segment Growth
Low
Low
High
High
Market Movements
Leaders
LG
Samsung
Onida
LG
OBJECTIVES
To become a Health
Partner for consumers
Focus on technology
leadership
To be Cyber LG
To enhance Brand
Equity
STRATEGY
Promote Golden-Eye
technology
Introduction of Internet-
TV/Interactive TV
Inbuilt cricket games in
select CTV models
Online Sales & Service
consultancy through
www.lgezbuy.com
To create Niche markets
for High-end technology
products
To associate LG brand
with Entertainment &
Sports industry
Aggressive Promotional
Campaigns
LG
STRENGTHS
Financial strength
Wide Distribution Network
Wholly owned R &D cell
Products having special focus
on Consumer Health (ex
Golden Eye)
Only player capable of
Backward Integration
Only player to conduct on-line
business
Only player to adopt Six-Sigma
WEAKNESS
Low penetration in Rural Areas
Poor dealer relationship
SAMSUNG
Objectives
Acquire digital
leadership
Providing superior
quality & state-of-
the-art technology
products
Capture 80% of CTV
market by 2007
Strategy
Betting on premium
products like
projection & flat
screen TV’s
Reinforce presence
across all segments
by launching 4-6
new models in
every product
category every
year.
Beef up distribution
network by 10-15%
SAMSUNG
Strengths
Strong R&D facilities ( 2
R&D centers in India at
Noida & Banglore)
Planned investments of
$42 Million
Online spares and
service management
Weaknesses
Poor after sales service
Limited presence in
rural areas
ONIDA
Objectives
Regain past glory
Attaining a Global
Scale
Rebuilding its Brand
Image
Strategy
Bring back ‘The Devil’
Develop markets
abroad aggressively
Increase reach in
Semi-Urban and Rural
areas
Product innovation &
differentiation
ONIDA
Strengths
Good dealer relationship
Strong brand awareness
in esp. in non- urban
areas.
Median Pricing
Best among second
rung players
Weaknesses
Poor financial strength
Dependency on JVC for
R&D
Weak distribution
network in North & East
Over- dependency on
suppliers
BCG Matrix for Onida
Relative Market Share
M
a
r
k
e
t
G
r
o
w
t
h
21" Flat
21" Conventional
29" Conventional
14" Conventional
20" Conventional
Cash Cows
Dogs
??????
Stars
High Low
Low
High
29' Flat
LG
SAMSUNG
ONIDA
AIWA
SONY
Price v/s Performance
P
e
r
f
o
r
m
a
n
c
e
Price
Low
Low
High
High
Product Positioning
AKAI BPL
VIDEOCON
Cost Focus
AKAI
AIWA
Differentiation
Focus
LG
SAMSUNG
Low Cost Position
SAMSUNG
LG
Differentiation
SONY
Uniqueness Perceived By The
Customer
Low Cost Position
Industry
Wide
Particular
Segment
Strategic Advantage
S
t
r
a
t
e
g
i
c
T
a
r
g
e
t
Generic Strategies
Insiders` perspecti·e
Interview with Mr. Ajit Inamdar (Ex. V.P. Finance,
Videocon International)
Players define their strategies for each logical business
function:
Vision/Mission
Financial motive
Product portfolio
Supply chain/ Manufacturing
Distribution
Logistics
Minimal differentiation industry
Market segregation – rural/urban/semi-urban
Interview with Mr. Himanshu, (Proprietor,
Plug-In Sales, Mumbai)
LG
Demand purely consumer pull driven
Provides the best after sales service
Ranks low in terms of dealer relationship
Insiders` perspecti·e . contd
Insiders` perspecti·e .
Interview with Mr. Himanshu, (Proprietor,
Plug-In Sales, Mumbai)
Samsung
Works on MOP
Dealers push till they can
Poor after sales support
Interview with Mr. Himanshu, (Proprietor,
Plug-In Sales, Mumbai)
Onida
Not likely to survive in the CTV business for long
Trusted brand
Comparable on product portfolio at present
R&D / product innovation unlikely
Insiders` perspecti·e .
Predictions
Market presently overwhelmingly towards flat
TVs
Plasma panels hold future promise
CRTs out of vogue
Penetration to increase in rural areas
Recommendations
It’s a game of marketing out- thinking
Carve out ‘perceived differentiators’
Schemes to enthuse replacement purchase
Promote round- the- year purchase
Diversification
LG - Sampoorna
Market Development
Haier ,Onida
New
Product development
Samsung -DNie
Market Penetration
LG Flatron/ Golden
Eye
Current
New Current
Products
M
a
r
k
e
t
s
Ansoff Business Unit Strategy Model
Recommendations
Convert potential semi- urban / rural customers
Offer attractive financing schemes
Firm up distribution networks in rural India
57.1
45.1
33.4
22.9
5
0
10
20
30
40
50
60
Population Centre
% Penetration
CTV Penetration across Population Centres
Top 7 metros
Other 1 mn+
metros
0.1-1 mn circle
Towns
Rural Areas
Source - ICRA Report
5
9
.
2
3
4
.
1
2
9
.
4
2
5
.
2
2
3
.
8
2
01
6
.
7
1
5
.
5
1
2
.
4
1
1
.
8
1
0
.
9
9
.
3
8
.
3
6.3
6
3
.
7
0
10
20
30
40
50
60
State
% Penetration
CTV Penetration across States
Delhi
Kerala
Punjab
Maharashtra
Gujrat
Tamil Nadu
Karnataka
Haryana
West Bengal
Andhra Pradesh
Assam
Madhya Pradesh
Rajasthan
Uttar Pradesh
Orissa
Bihar
Source – ICRA Report
Recommendations
Happy dealers get more customers
Re- look at the margin structure
Credit terms
After sales service very crucial
Company should own responsibility
Call centers, home pick- up
Technological innovation
Increase R&D budgets
Focus on local needs
1hank \ou
Bakhshi Rahul (C- 202)
Das Avik (C- 205)
Kedar Gore (C- 208)
Shah Ronney (C- 236)
Sharma Kshitij (C- 237)
Gupta Sandeep (C- 259)
doc_668624179.pdf
The multi-nationals have gained advantage
over domestic players of late. Even though
sales volume has shown a long-term growth,
there continues to be over-capacity
as production is outstripping the growth
in demand.Most of the raw materials are
available easily in India. Some
high-end raw materials such as
larger-size picture tubes for flat
TVs are imported.
Industry & Competiti·e
Analysis
Of The Color TV Industry In India
Presentation Map
Market
Predictions
Field
Interviews
Leaders
Industry
Analysis
Strategy
Industry Structure
Market Size Rs. 87 bn
Color TV’s – Rs. 80 bn
B/W TV’s – Rs. 7 bn
Haier Videocon
BPL Sansui
Sony Onida
Akai Samsung
Philips LG
PLS1 Analysis
Political
Lowering of customs/excise
duties post 90’s
Globalization driving
investment through FDI,
FIIs & JV’s
Economic
Increased urbanization
Increase in disposable
personal income
Easy & cheap availability of
consumer finance
Social
Burgeoning middle class
Double income families
Technological
India becoming a
manufacturing hub
Incorporation of top end
technology across product
range
Porter`s 5 íorces` model
Threat of entry 2.142857 Existing Rivalry 3.5
Economies of Scale 3 Numerous Balanced Competitors 4
Product Differentiation 2 Slow Industry Growth 4
Capital Investment 3 High Fixed Cost 4
Switching Costs 1 Lack of Differentiation 3
Distribution Access 4 Capacity Augmentation 3
Cost Disadvantage 1 Diverse Competitors 4
Govt. Policies 1 High Strategic Stakes 4
High Exit Barriers 2
Substitute products 3
Technological progress within the industry
Buyers moving up the value chain
Bargaining Power of Suppliers 3.166667 Bargaining Power of Buyers 3.25
Few Suppliers 4 Large Volumes 2
Substitutes Available 4 Significant Costs 4
Customer Importance 1 Standard Purchases 3
Importance of the Input 4 Switching Costs 3
Switching Costs 5 Low Profit 3
Forward Integration 1 Backward Integration 4
Input importance 4
Full Information 3
Ln·ironmental Analysis : Porter`s Model
Inter-firm rivalry - HIGH
The multi-nationals have gained advantage
over domestic players of late. Even though
sales volume has shown a long-term growth,
there continues to be over-capacity
as production is outstripping the growth
in demand.
Bargaining Power of Suppliers
HIGH
Most of the raw materials are
available easily in India. Some
high-end raw materials such as
larger-size picture tubes for flat
TVs are imported.
Bargaining Power of Buyers - HIGH
With the intensification of
competition in the Indian CTV
industry, the bargaining
power of the buyer has
increased. As compared with
the early-1990s, a consumer
can bargain more effectively
on price and service conditions.
Barriers to Entry - MEDIUM
In the CTV industry, although there are
not prohibitively high costs of entry,
the critical success factors are brand
image, brand allegiance, and
distribution networks.
Threat of Substitutes - HIGH
The CTV sector is characterized
by continuous technology advances
that may result in substitution
within the product category
% Market Share by Units sold (January - June 2004)
22.52
13.83
10.72
9.37
8.37
5.98
3.95
3.35
3.14
2.46
16.31
LG
Samsung
Onida
Sansui
Videocon
Philips
Akai
Sony
BPL
Thomson
Others
Source – The Brand Reporter, August 16-31
22.1
15.3
11.5
9.2
8.2
6.1
3.4
7.0
2.8
2.4
12.0
LG
Samsung
Onida
Sansui
Videocon
Philips
Akai
Sony
BPL
Thomson
Others
% Market Share by Value (January – June 2004)
Source - The Brand Reporter – August 16-31
20 “Conventional
21” Conventional
14” Conventional
29” Conventional
21” Flat
29” Flat
Market Share v/s Segment Growth (03-04)
M
a
r
k
e
t
S
h
a
r
e
Segment Growth
Low
Low
High
High
Market Movements
Leaders
LG
Samsung
Onida
LG
OBJECTIVES
To become a Health
Partner for consumers
Focus on technology
leadership
To be Cyber LG
To enhance Brand
Equity
STRATEGY
Promote Golden-Eye
technology
Introduction of Internet-
TV/Interactive TV
Inbuilt cricket games in
select CTV models
Online Sales & Service
consultancy through
www.lgezbuy.com
To create Niche markets
for High-end technology
products
To associate LG brand
with Entertainment &
Sports industry
Aggressive Promotional
Campaigns
LG
STRENGTHS
Financial strength
Wide Distribution Network
Wholly owned R &D cell
Products having special focus
on Consumer Health (ex
Golden Eye)
Only player capable of
Backward Integration
Only player to conduct on-line
business
Only player to adopt Six-Sigma
WEAKNESS
Low penetration in Rural Areas
Poor dealer relationship
SAMSUNG
Objectives
Acquire digital
leadership
Providing superior
quality & state-of-
the-art technology
products
Capture 80% of CTV
market by 2007
Strategy
Betting on premium
products like
projection & flat
screen TV’s
Reinforce presence
across all segments
by launching 4-6
new models in
every product
category every
year.
Beef up distribution
network by 10-15%
SAMSUNG
Strengths
Strong R&D facilities ( 2
R&D centers in India at
Noida & Banglore)
Planned investments of
$42 Million
Online spares and
service management
Weaknesses
Poor after sales service
Limited presence in
rural areas
ONIDA
Objectives
Regain past glory
Attaining a Global
Scale
Rebuilding its Brand
Image
Strategy
Bring back ‘The Devil’
Develop markets
abroad aggressively
Increase reach in
Semi-Urban and Rural
areas
Product innovation &
differentiation
ONIDA
Strengths
Good dealer relationship
Strong brand awareness
in esp. in non- urban
areas.
Median Pricing
Best among second
rung players
Weaknesses
Poor financial strength
Dependency on JVC for
R&D
Weak distribution
network in North & East
Over- dependency on
suppliers
BCG Matrix for Onida
Relative Market Share
M
a
r
k
e
t
G
r
o
w
t
h
21" Flat
21" Conventional
29" Conventional
14" Conventional
20" Conventional
Cash Cows
Dogs
??????
Stars
High Low
Low
High
29' Flat
LG
SAMSUNG
ONIDA
AIWA
SONY
Price v/s Performance
P
e
r
f
o
r
m
a
n
c
e
Price
Low
Low
High
High
Product Positioning
AKAI BPL
VIDEOCON
Cost Focus
AKAI
AIWA
Differentiation
Focus
LG
SAMSUNG
Low Cost Position
SAMSUNG
LG
Differentiation
SONY
Uniqueness Perceived By The
Customer
Low Cost Position
Industry
Wide
Particular
Segment
Strategic Advantage
S
t
r
a
t
e
g
i
c
T
a
r
g
e
t
Generic Strategies
Insiders` perspecti·e
Interview with Mr. Ajit Inamdar (Ex. V.P. Finance,
Videocon International)
Players define their strategies for each logical business
function:
Vision/Mission
Financial motive
Product portfolio
Supply chain/ Manufacturing
Distribution
Logistics
Minimal differentiation industry
Market segregation – rural/urban/semi-urban
Interview with Mr. Himanshu, (Proprietor,
Plug-In Sales, Mumbai)
LG
Demand purely consumer pull driven
Provides the best after sales service
Ranks low in terms of dealer relationship
Insiders` perspecti·e . contd
Insiders` perspecti·e .
Interview with Mr. Himanshu, (Proprietor,
Plug-In Sales, Mumbai)
Samsung
Works on MOP
Dealers push till they can
Poor after sales support
Interview with Mr. Himanshu, (Proprietor,
Plug-In Sales, Mumbai)
Onida
Not likely to survive in the CTV business for long
Trusted brand
Comparable on product portfolio at present
R&D / product innovation unlikely
Insiders` perspecti·e .
Predictions
Market presently overwhelmingly towards flat
TVs
Plasma panels hold future promise
CRTs out of vogue
Penetration to increase in rural areas
Recommendations
It’s a game of marketing out- thinking
Carve out ‘perceived differentiators’
Schemes to enthuse replacement purchase
Promote round- the- year purchase
Diversification
LG - Sampoorna
Market Development
Haier ,Onida
New
Product development
Samsung -DNie
Market Penetration
LG Flatron/ Golden
Eye
Current
New Current
Products
M
a
r
k
e
t
s
Ansoff Business Unit Strategy Model
Recommendations
Convert potential semi- urban / rural customers
Offer attractive financing schemes
Firm up distribution networks in rural India
57.1
45.1
33.4
22.9
5
0
10
20
30
40
50
60
Population Centre
% Penetration
CTV Penetration across Population Centres
Top 7 metros
Other 1 mn+
metros
0.1-1 mn circle
Towns
Rural Areas
Source - ICRA Report
5
9
.
2
3
4
.
1
2
9
.
4
2
5
.
2
2
3
.
8
2
01
6
.
7
1
5
.
5
1
2
.
4
1
1
.
8
1
0
.
9
9
.
3
8
.
3
6.3
6
3
.
7
0
10
20
30
40
50
60
State
% Penetration
CTV Penetration across States
Delhi
Kerala
Punjab
Maharashtra
Gujrat
Tamil Nadu
Karnataka
Haryana
West Bengal
Andhra Pradesh
Assam
Madhya Pradesh
Rajasthan
Uttar Pradesh
Orissa
Bihar
Source – ICRA Report
Recommendations
Happy dealers get more customers
Re- look at the margin structure
Credit terms
After sales service very crucial
Company should own responsibility
Call centers, home pick- up
Technological innovation
Increase R&D budgets
Focus on local needs
1hank \ou
Bakhshi Rahul (C- 202)
Das Avik (C- 205)
Kedar Gore (C- 208)
Shah Ronney (C- 236)
Sharma Kshitij (C- 237)
Gupta Sandeep (C- 259)
doc_668624179.pdf