Videocon ….

at a glance
Ø Founder : Late Nandlal Madhval Dhoot
Strated in 1980’s
Ø Videocon is an Indian multinational company with
interests in Consumer Electronics, Home
Appliances , and Colour Picture Tube Glass.
Ø
Ø In 1987, it used to manufacture TV and Washing
Machine.
Ø
Ø In 1989-90, Videocon started manufacturing Home
Entertainment Systems,Electric Motors & AC.
Ø
Ø Videocon entered Refrigerators and coolerssegment in
1991.
Ø
Ø In 1995, Videocon started manufacturing Glass
shells for CRT
In 1998, Videocon started manufacturing
Compressors & Compressor Motors.
 In the year 2000, Videocon tookover Philips
Color TV Plant.
 In 2005, Videocon tookover 3 plants of
Electrolux India and acquired Thomson CPT.
 Today, it has evolved into a giant
Conglomerate with annual revenues of over
U$4.1 billion.
ØIn 1996 it ventured into Kitchen appliances .

STRATEGIC BUSINESS UNIT

ØAn SBU in a strategic management sense, is an
entire division in large corporations that carries
out certain business. This approach entails the
creation of SBU to address each market in which
company is operating.
ØØ
Videocon is operating in following products

Consumer Electronics Home Appliances

Televisions Refrigerators
VCD players Washing Machines
Mobile Phones Microwave Ovens
Audio Systems Air Conditioners
LCDs , LEDs

Political Factors

ØLabour unions effects a lot the
production
ØResolution to reduce emission of carbon
footprints in the atmosphere
ØAnti-dumping duty on imported color
picture tubes.

Economic Factors

ØGrowth of retail sector – expected to reach 16%
by 2011-12 from 4% in FY07
ØAvailability of finance.
ØHigh investments are needed in the consumer
durables.
ØEconomic reforms by the government –higher
purchasing power
ØEmergence of organized retail market with large
players like Croma, next, reliance digital etc –
leading to lower prices and higher varieties
61 % of total urban income comes from
households —earning between US$ 1,493
and US$ 9,955 a year.

Social Factors

ØDisposable Income roughly doubled since
1985.
ØChanging perception of luxury to necessity.
ØIn rural areas there is poor infrastructural
facilities like availability of electricity.
ØDemand of the consumer durables is seasonal
and cyclic.
ØHighly growing consumer durable market.


Porter’s Five Force Model
Porters Five
Force

Rivalry and competition: High
Power of suppliers: moderate to low
Threat from substitute products/services:
High to moderate; depends on the product
Threat from new entrants: moderate
Power of buyers: high

Technological Factors

ØImproved electricity consumption.
ØHigher quality products.
ØTechnological is changing at a very fast rate.

Recommendations
 Continuing with go green and electricity
efficient products.
 Relationship marketing through improved
sales support.
 Focus on OEMs as in international market it
can provide cost effective products.
 Videocon is still not able to create a brand
name in the international market so the
company should increase its marketing
budget for making its presence felt in the
international market.


Videocon Group
Consumer Electronics & Home Appliances
D2H
Mobile Phones
GSM Mobile Services
Oil & Gas
Display industry and its components
Colour Picture Tube Glass