OM_Presentation videocon a case study for mba

Videocon Case Study

1. VIDEOCON –THE TRUE INDIAN MULTINATIONA ROLL NOS : 14, 15, 18, 51, 61

2. BACKGROUND AND HISTORY Founded- 1979 Founder- Late Nandhlal Madhavlal Dhoot Headquarters - Aurangabad Maharashtra India Area served - Consumer electronics, Home applicance components, Mobile phones, DTH, Petroleum, Telecommunication, CPT

3. INCORPORATION OF COMPANY In 1985 Nandhlal Madhavlal Dhoot founded and incorporated videocon international with a goal of manufacturing 1 Lakh TV sets per year Videocon became first company to bring colour TV's to India Changed the countries viewing experience Game changing move of dropping prices Videocon was the ruler of the competition but real conflict started when it wanted to move into different industries.

4. CONTD… Venugopal Dhoot acquired licenses in 1984 to make colourful TV's 1985 technical tie- up with Toshiba corporation of Japan Founded International Limited and launched India's first colour Tv Resources from various countries

5. COMPETITVE ADVANTAGE Cost of production Largest distributed manufacturing base across India 12 facilities Managing a complex supply chain Backward integration Taking advantage of policy-friendly locations • Wide product portfolio

6. INDUSTRY LEADER It was not just the Electronics Industry but whichever Industry Videocon entered it ruled the Market. The company has been taking risks and many of these risks have paid off They believe in growing world wide with tie-ups and acquisitions

7. TREMENDOUS GROWTH OF VIDEOCON

8. FINDINGS 2005 Videocon found themselves as clear indenties Oil revenues to shore up sagging consumer business. Estimated sales didn't match to real sales Consumer durables not as profitable as oil gas Bidding for oil field was extremely difficult Entrance of new players in the market• Industry is sensitive Videocon trying too many things

9. ACQUIRING COMPANIES WITHOUT MUCH PAYBACK Acquiring companies of Daewoo electronics in 2006. 92 % of operations share of Electrolux company CRT capacities Thomas facties -China TCL

10. MARKET SPLIT Contract manufacturing Global networks Backward Integration Working for brands and supplying them own services. CRT prices Research and Development centres

11. MARKET EXPANSION 17 Manufacturing plants in India and plants in China, Mexico, France and many more countries. India is a US $236 million dollars OEM Market. Contract manufacturing is US $ 220 Billion Opportunity 26 OEM consumers including Toshila , Onida , Hyundai

12. REASONS FOR FAILURE Huge competition Diversification leading to aggressive borrowings Ethical issues Managing of Industries and being the best player of market.

13. Challenges and Criticisms High Debt Levels Failure in adaptation of changing markets Regulatory violations Decline in Quality Ineffective Business Strategies.

14. REPORTS Sales growth declined over past 5 years Profit rate being declining at a huge rate Promoters holding shares yet promising equity Operating cash flows have become negative

15. What grand business strategies have been followed by videocon in India ? Revolution Risk taking Opportunity Expansion Differentiation Studying the market Tie-Ups