1. Why Micromax is Failing?
A Detailed Business Case Study Analysis

2. INTRODUCTION
Micromax is a consumer electronics company that
was founded in 2000. The company started as a
small business manufacturing computer peripherals
and has since expanded its product line to include
mobile phones, smartphones, and other consumer
electronics.
Micromax's first phone was the Micromax X1i, which
was launched in 2008. The priced was at Rs. 1,999
in India at the time of launch. The Micromax X1i was
a popular phone in the budget segment and helped
Micromax establish itself as a local brand.
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3. In 2013, Micromax's sales grew by 90%,
and it became the second-largest
smartphone vendor in India, with a market
share of 22%. In 2014, the company's sales
crossed the $1 billion mark for the first
time, and it was ranked as the tenth-
largest smartphone vendor in the world,
with a market share of 2.4%.
In 2011, Micromax was the third-largest
mobile phone vendor in India, with a
market share of 6.6%. By 2012, it had
overtaken Samsung to become the largest
domestic mobile phone manufacturer in
India.
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4. WHY MICROMAX WAS SO FAMOUS?
Innovation
Micromax was one of the first Indian
companies to introduce dual-SIM phones,
which allowed users to use two SIM cards
simultaneously.
Budget Friendly Pricing
Micromax entered the market at a time
when smartphones were expensive and
not accessible to the masses. Micromax
offered affordable smartphones with
decent features and specifications, which
made them accessible to a wider audience.
Localization
Micromax understood the market well and
localized its products accordingly. For
example, they launched phones with
regional language support, which made
them more accessible to people in rural
areas who were not comfortable with
English.
Wide Range of Product Portfolio
Micromax had a wide product portfolio that
catered to different segments of the
market. They offered feature phones,
smartphones, tablets, and other electronic
products at various price points.
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5. But Why
Micromax is
Failing?
Source: https://www.businesstoday.in/magazine/corporate/story/the-return-of-micromax-chinese-smartphone-anti-china-sentiment-270370-2020-08-18

6. FAILURE TO INNOVATE
Micromax failed to innovate and bring new features
to its products. The company's product portfolio
lacked unique features and innovation compared to
its competitors. This led to a decline in consumer
interest in Micromax products, which ultimately led
to a decline in sales.
For example, Micromax's Canvas series of
smartphones, which was once its flagship product
line, did not see much improvement in terms of
features and specifications over the years. This can
be seen in the comparison between the Canvas 4,
which was launched in 2013, and the Canvas 6,
which was launched in 2016. While the Canvas 6 had
a slightly larger screen and better processor, it did
not offer any significant new features compared to
the Canvas 4.
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7. POOR QUALITY CONTROL
Software Issues: Micromax phones were known for their
software bugs and glitches. Customers complained about
apps crashing, slow performance, and software freezing
issues. These problems affected the user experience and
led to a decline in customer satisfaction.
Hardware Issues: Micromax phones were also plagued by
hardware issues, including problems with the display,
battery, and charging ports. Many customers reported that
their phones stopped working after a few months, which led
to a significant increase in the number of returns and
warranty claims.
Poor Customer Services: Micromax's customer service was
also subpar, which added to the frustration of customers
facing quality issues. Many customers reported that their
complaints were not resolved, and they were not able to get
a satisfactory resolution to their issues.
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8. POOR MARKETING STRATEGY
Micromax did not have a strong marketing strategy
to compete with global giants such as Samsung,
Apple, and Huawei. The company relied on celebrity
endorsements and partnerships, which did not
resonate with consumers in the long run.
LACK OF BRAND RECOGNITION
Very poor customer support. Micromax lacked brand
recognition, which made it difficult for the company
to attract customers. The company did not invest
enough in building its brand in the country, which led
to a lack of awareness of Micromax products.
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9. CLUTTERED MARKET
Micromax faced tough competition from
global companies, such as Samsung and
Xiaomi, that had a better market
presence and reputation.
Micromax failed to keep up with the competition in
terms of innovation, marketing, and quality
control, which led to a decline in its market share
and reputation.
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10. HEAVILY DEPENDS ON CHINESE
SUPPLIERS
Micromax relied heavily on Chinese suppliers for
components and assembly of their devices.
According to a report by Counterpoint Research,
in 2014, more than 85% of Micromax's
smartphones were assembled in China, with key
components such as display, camera modules,
and processors also being imported from China.
Additionally, the company also relied on Chinese
suppliers for their marketing activities and supply
chain management.
However, Micromax faced significant backlash in
India following the India-China border clash in
2020, which led to calls for a boycott of Chinese
products.
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11. CONCLUSITIONS
Micromax, which once held a significant share of
the Indian mobile phone market, has faced a
sharp decline in recent years. The company's
inability to keep up with its competitors' pace of
innovation, coupled with issues of poor quality
control, weak marketing strategies, and strong
competition, has led to a decrease in customer
satisfaction and a loss of market share.
Moreover, the company's failure to establish itself
in the Bangladeshi market, where it faced a lack
of local partnerships and brand recognition, as
well as high competition from established global
companies, further contributed to its decline. To
regain its position in the market, Micromax will
need to focus on addressing these key issues and
improving its brand identity.
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Source: Statista 2020

12. Dipayan Saha Dip
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