Business Strategy Analysis – Videocon

Industries

Presented By,
Tejaswi Monangi,
1807010,
PGPEX - VLFM
 Mission & Vision

“To delight and deliver beyond

expectation through ingenious strategy,
intrepid entrepreneurship, improved
technology, innovative products, insightful
marketing and inspired thinking about the
future.”
 Impact Matrix Analysis
Key Macro Samsung Home
Sl. No Videocon Home Appliances
Influencer Appliances

1 Manufacturing Distributed Manufacturing Network (++) Not so distributed (+)

Exploring Global
2 Wide Global Presence (+) Wide Global Presence (++)
market

3 Brand value Reducing Brand Value (+) High Brand Value (++)

4 Distribution channel Complex Distribution Network (++) Good Distribution Network (++)

5 R&D Developed Recently (-) Well Established (++)

Reduced focus due to aggressive

6 Marketing Focus Very Aggressive (++)
expansions to other domains (-)
Total Score 4 11
Porter's 5 Force Analysis – Home Appliances
Threat of New
Entrants(M)
Reducing product life
cycles and innovative
technologies

Bargaining Power of Bargaining Power of

Industry Customers(H)
Suppliers(M)
Competition (H)
Increased due to Increased due to
Samsung, Onida, availability of Multiple
reduced availability of
LG, Sony, Whirlpool Options & Online Stores
components

Threat of Substitutes(M)
Smart Appliances &
Alternative Platforms
 Core Assets Vs Core Activities
• 2008 Global Crisis followed by
reduced oil prices.
• Telecommunications network
Threatened license cancelled by
Core Assets Creative Radical
• Largest Distributed Change Change Supreme Court.
• Oil Fields in Brazil under Red
Manufacturing base with Mobile Phones Tape.
17 facilities across India. Business • CPT Business Closed during
• Managing Complex Demonetization.
Supply Chain. • Bad debt of 45,000 Cr INR
• Wide Product Portfolio due to Aggressive Expansion.
• Oil Fields in India & Brazil. Core Assets
• Telecommunications
Network License.
• Planet M, Digiworld, Next Progressive Intermediating
Change Change
Core Activities • Increased Competition in
D2H Home Appliances Market.
• Glass Shells for CPT
• Home Appliances Retail Services • Reduced Product Life Cycles
• Oil & Gas
Not (Planet M,
• Mobile Phones Threatened Digiworld, Next)
• Telecommunications &
Internet
• D2H Service
• Retail Services. Not Threatened
Core Activities
Threatened
Strategic Group Analysis – Consumer Products

Broad

Samsung, LG, Sony,

Xiaomi
Product Range Videocon
Whirlpool

Onida Akai
Micromax Toshiba

Narrow

National Geographical Scope Global

 Capability Analysis
Distributed
Capability Manufacturing Networks Competence
Complex Supply Chain
Management Multiple Income
Generating Investments

Wide Product Portfolios & Intrepid Entrepreneurship

Brands. Innovative Products & Core
Resource Inspired thinking about Competence
Oil & Gas Investments Future
 VRIN Analysis
Competitive Performance
Resource/ Capability Valuable Rare Inimitable Non Substitutable
Consequence Indicator

Sustained
Above Average
Intrepid Entrepreneurship Yes Yes Yes Yes Competitive
Returns
Advantage
Unused
Distributed Above Average
Yes Yes Yes No Competitive
Manufacturing Network Returns
Advantage
Unused
Above Average
Oil & Gas Investments Yes Yes Yes No Competitive
Returns
Advantage

Temporary
Above Average
Brand Image Yes Yes No No Competitive
Returns
Advantage

Research & Competitive Below Average

No No No No
Development Disadvantage Returns
Telecommunications Competitive Below Average
No No No No
Investments Disadvantage Returns
 Relative Appraisal
Videocon
Resource/ Industry
Sl. No Home Remarks
Capability Standard
Appliances
R: Resources
Manufacturing Distributed manufacturing
R1 7 8
Systems capability with 17 plants.
Research &
R2 8 4 Late entrant in R&D.
Development
Reducing due to lost focus
R3 Brand Image 8 7
in R&D and Marketing.
C: Capabilities
Distribution Owns retail outlets like
C1 8 9
Network Planet M, Next, Digiworld.
Reduced focus due to
C2 Marketing & Sales 9 4
expansions
New Product
C3 7 4 Late entrant
Development
 Relative Appraisal
10 Superfluous
C1
Strengths R1
R3

Key
Relative Strength
Strengths

C3 R2 C2

Zone of Key
1
Irrelevance Weakness

1 Relative Importance 10
 Videocon Industries- Product Developement
Declared
Home
Compressors & Bankruptcy Due to
Entertainment
Compressor Motors Merging of Group Huge Debt of
Systems, Electric
Brands 45,000Cr
Motors, Air
Conditioners

Glass Shells for Thompson Telecommunications

Colour TVs Color Picture Tubes Acquisition Venture
(CPT)

1985 1987 1989-90 1991 1995 1996 1998 2000 2005 2005 2008 2009 2010 2015 2017

Phillips Entry to Mobile

Refrigerators & Colour TV Phones & D2H
Coolers Plant Markets
Takeover
Washing
Machines
Kitchen Electrolux 3 Plants Introduced Flagship
Appliances & Takeover Smart Phone –
Crude Oil Infinium Z51+
 References
 Vision & Mission Statement: http://videoconmlt.blogspot.com/p/vision-mission.html
 Milestones Information: https://economictimes.indiatimes.com/videocon-industries-
ltd/infocompanyhistory/companyid-10502.cms
 Other Key Information: https://en.wikipedia.org/wiki/Videocon_Group
Thank You