CALCULATION OF IFE, EFE AND CPM FOR TITAM

COMPANY LIMITED

OVERVIEW OF THE COMPANY

TITAN COMPANY LIMITED

Titan Company Limited (earlier known as Titan Industries Limited) is an

Indian consumer goods company. It is a joint venture between the Tata Group and the Tamil
Nadu Industrial Development Corporation. It commenced operations in 1984 under the name
Titan Watches Limited. In 1994, Titan diversified into jewellery with Tanishq and
subsequently into eyewear with Titan Eyeplus. In 2013, Titan entered the fragrances segment
with the brand Skinn and, later that year, it ventured into the helmets category under its
brand Fastrack Also, Titan announced recently (during the last quarter of 2016) about
launching a series of affordable Smart watches under its brands like Sonata and Fastrack
soon.

HISTORY OF TITAN COMPANY LIMITED

Titan Company Limited was inaugurated on 26th July, 1984 under the name Titan
Watches Limited in Chennai. A plant was set up to manufacture quartz analog electronic
watches in the State Industries Promotion Corporation of Tamil Nadu, Ltd. Industrial area
at Hosur. In November 1986, Titan Company and Casio signed a MoU proposing to
manufacture 2 million digital and analog-digital watches. In 1989, a satellite case plant was
set up in Dehradun, Uttar Pradesh, Uttarakhand at present with a manufacturing capacity of
500,000 watch cases annually.

In September 1993, the company changed its name to Titan Industries Ltd. as it ventured into
other range of products other than watches.
In 1994, Titan launched its jewellery brand Tanishq.

In 1998, the company launched its watch & accessories brand, Fastrack, targeted at a younger
audience in a bid to compete with Timex.

In 2001, Titan launched kids’ watches brand, Dash. The brand saw poor performance and
was discontinued in 2003. In 2004, the company entered into an agreement with Moet
Hennessy Louis Vuitton Group, to service the latter's range of watches in India through its
customer care centres. In 2005, Fastrack was positioned as an independent accessory brand
targeting the urban youth. With the objective to become a fashion brand, Fastrack
launched sunglasses in the same year and launched bags, belts and wallets in 2009.

Titan acquired Swiss watch maker Favre-Leuba in 2011 to enter the European market. In

2013, Titan entered the fragrances segment with the brand Skinn. In the same year, it changed
its name to Titan Company Ltd.  In 2014 it entered into a joint venture with Montblanc to
establish its retail stores in India.

In 2016, Titan opened prescription lens manufacturing facilities in Noida, Kolkata,

and Mumbai to improve its order processing time.  In 2018, Titan merged its jewellery brand,
Gold Plus targeted at customers in South India with Tanishq to establish the brand's presence
in the south.
VISION STATEMENT

We create elevating experiences for the people we touch and significantly impact the
world we work in.

MISSION STATEMENT

We will do this through a pioneering spirit and a caring, value-driven culture that
fosters innovation drives performance and ensures the highest global standards in everything
we do.
INTERNAL FACTOR EVALUATION (IFE)

IFE (Internal Factor Evaluation) helps to strategically audit or evaluate major internal
strengths and internal weaknesses in functional areas of the business. The table below gives
the score of Titan on different parameters.

S No. Key Internal Factors Weight Ratings Weighted

Score
Strengths
1 Innovation 0.1 4 0.4
2 Positioning products 0.05 4 0.2

3 High brand recognition in 0.05 3 0.15

4 Diversifying into related major 0.05 4 0.2

products
5 CSR to get Customer Attention 0.05 4 0.2
6 Low debt 0.05 3 0.15

7 Excellent customer Service 0.10 4 0.4

8 High quality products 0.1 3 0.3
9 Promotion and Advertising 0.1 4 0.4

Weaknesses
10 International Recognition 0.05 1 0.05
11 Uncertainty in Customer 0.1 2 0.2
Perception
12 World class experience 0.1 2 0.2
13 Reach to both urban and rural 0.05 1 0.05
India
14 Marketing Research 0.05 2 0.1
Total 1.00 3
EXTERNAL FACTOR EVALUATION (EFE)

EFE (External Factor Evaluation) is used for assessment of current business

conditions in the business. The EFE matrix is a good tool to visualize and prioritize the
opportunities and threats that a business is facing. The table below shows the external
standing of Titan on different parameters.

S No. Key External Factors Weight Ratings Weighted

Score
Opportunities
1 Global product market expected to 0.1 4 0.4
grow faster
2 Brand Positioning through e- 0.05 4 0.2
commerce
3 Under-penetrated market 0.05 3 0.15
4 Watch as a fashion accessory 0.05 4 0.2
5 Projection watch as an event 0.05 3 0.15
specific
6 Unrelated Diversification 0.1 4 0.4
7 % of people who can buy the 0.05 3 0.15
product v/s those who own it
8 Increased demand for smart/ new 0.1 4 0.4
type of watches

Threats
9 Intense competition in industry 0.1 1 0.1
10 Severe price cutting in the industry 0.05 2 0.1
11 Emergence of substitute products 0.1 2 0.2
12 Unstable demand 0.05 1 0.05
13 Trends in fashion keeps changing 0.1 2 0.2
14 International competition 0.05 2 0.1
Total 1.00 2.8
COMPETITIVE PROFILE MATRIX (CPM)
The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals
and reveals their relative strengths and weaknesses. The table below shows the stand of Titan,
Swatch and Casio with respect to Indian Industry.

CSF Weight Titan Swatch Casio

Rating W. Rating W. Rating W.
Score Score Score
Market Share 0.15 4 0.6 3 0.45 2 0.3
Brand Perception 0.1 2 0.2 4 0.4 3 0.3
Quality 0.2 3 0.6 4 0.8 2 0.4
Consumer Loyalty 0.05 4 0.2 4 0.2 3 0.15
Sales and Distribution 0.1 4 0.4 2 0.2 3 0.3
e-Commerce 0.05 2 0.1 3 0.15 4 0.2
Customer Service 0.1 4 0.4 2 0.2 2 0.2
Price Competition 0.05 3 0.15 4 0.2 3 0.15
Product Diversification 0.1 4 0.4 3 0.3 2 0.2
Promotion/Advertisement 0.1 4 0.4 2 0.2 2 0.2
Total 3.45 3.1 2.4

CONCLUSION
Overall, Titan Company Limited is presently striving owing to its long known brand
image and reputation. The quality of their products have been consistent, they are also well-
known for innovative products. Being the largest manufacturer of watches in India, Titan has
become a household name in the Indian consumer market. With its diverse range of products
and expertise in watch manufacturing has been doing extremely well in the market and is
forecasted to grow multiple folds in the years to come.