Why micromax failed

Harsh Kumar
Harsh KumarI am a student of BBA
DOWNFALL OF
MICROMAX
HARSH KUMAR
HISTORY OF MICROMAX
Micromax was founded in 1991 by Rajesh Agarwal.
it was never a phone company and started out as a
distributor of computer hardware for different brands
like Dell, HP, and Sony.
The company was later called Micromax Informatics.
Micromax in the early 2000s was largely a software
company known as Micromax Softwares.
2
“
3
5 REASON THAT MADE MICROMAX FAILURE
DOMINACE OF CHINA IN INDIAN MARKET-
In India, out of five best selling smartphones, four
are Chinese vendors.
Xiaomi retained the top point with a 27.1% ( in Q3)
market share comprising 12.6 million shipment
units.
However, their market share has fallen from
30.6% in Q1 2019. 4
“
5
5 REASON THAT MADE MICROMAX FAILURE
PROMOTION OF BRAND AND BRAND VALUE-
Others brand like MI, OPPO, VIVO have more valuable
product than Micromax and they have more power of
branding(Advertising).
According to the IDC report, In the second quarter of 2019
(Q2), Smartphone shipments reached to 36.9 million, up from
32.1 million in the previous quarter, according to International
Data Corporation’s (IDC) Asia/Pacific Quarterly Mobile Phone
Tracker. 6
5 REASON THAT MADE MICROMAX FAILURE
QUALITY AND SPECIFICATION-
Everyone looks for smart phones which have a great
feature, quality.Now a days people required more features in
less effective cost. Features like Quad Cam, Snapdragon
processor is available in lowest price.
But Micromax is still selling 3G keypad phone and they are
not ready to change themselves with the new emerging
market.
7
5 REASON THAT MADE MICROMAX FAILURE
TIME FOR E-COMMERCE-
We all prefer to buy online because it gives us a lot of things like
a discount, return, free delivery and replacement policy as well.
The offline market is being dominated by Oppo and Vivo. As
they were paying an extra amount of money to retailers and
distributors to keep their brands in front customers eyes.
Retailers could make easy money from Chinese brands by
showing the number of devices sold, while a brand like Samsung
demands that they sell phones worth a particular amount
8
5 REASON THAT MADE MICROMAX FAILURE
PRICE WAR/SEGMENT-
As you know that Chinese companies let you provide more
specifications with a low budget so we could buy without
thinking too.
If you visit a mobile shop to buy a Smartphone, the
shopkeeper will show two smartphones. One has a
Snapdragon processor, quad camera, OIS, 5000 mAh Battery,
4GB of RAM, etc which price is 25,000. Second has the same
feature but the price is around 15,000. 9
“ CONCLUSION
Changing your self with changing
environment is more important to
survive in this enormous sea of
electronic market. As we seen that
Micromax is not ready to change then it
is easy for new players to increase
there dominance in Indian market like
China
10
THANK YOU…..
1 sur 11

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Why micromax failed

  • 2. HISTORY OF MICROMAX Micromax was founded in 1991 by Rajesh Agarwal. it was never a phone company and started out as a distributor of computer hardware for different brands like Dell, HP, and Sony. The company was later called Micromax Informatics. Micromax in the early 2000s was largely a software company known as Micromax Softwares. 2
  • 4. 5 REASON THAT MADE MICROMAX FAILURE DOMINACE OF CHINA IN INDIAN MARKET- In India, out of five best selling smartphones, four are Chinese vendors. Xiaomi retained the top point with a 27.1% ( in Q3) market share comprising 12.6 million shipment units. However, their market share has fallen from 30.6% in Q1 2019. 4
  • 6. 5 REASON THAT MADE MICROMAX FAILURE PROMOTION OF BRAND AND BRAND VALUE- Others brand like MI, OPPO, VIVO have more valuable product than Micromax and they have more power of branding(Advertising). According to the IDC report, In the second quarter of 2019 (Q2), Smartphone shipments reached to 36.9 million, up from 32.1 million in the previous quarter, according to International Data Corporation’s (IDC) Asia/Pacific Quarterly Mobile Phone Tracker. 6
  • 7. 5 REASON THAT MADE MICROMAX FAILURE QUALITY AND SPECIFICATION- Everyone looks for smart phones which have a great feature, quality.Now a days people required more features in less effective cost. Features like Quad Cam, Snapdragon processor is available in lowest price. But Micromax is still selling 3G keypad phone and they are not ready to change themselves with the new emerging market. 7
  • 8. 5 REASON THAT MADE MICROMAX FAILURE TIME FOR E-COMMERCE- We all prefer to buy online because it gives us a lot of things like a discount, return, free delivery and replacement policy as well. The offline market is being dominated by Oppo and Vivo. As they were paying an extra amount of money to retailers and distributors to keep their brands in front customers eyes. Retailers could make easy money from Chinese brands by showing the number of devices sold, while a brand like Samsung demands that they sell phones worth a particular amount 8
  • 9. 5 REASON THAT MADE MICROMAX FAILURE PRICE WAR/SEGMENT- As you know that Chinese companies let you provide more specifications with a low budget so we could buy without thinking too. If you visit a mobile shop to buy a Smartphone, the shopkeeper will show two smartphones. One has a Snapdragon processor, quad camera, OIS, 5000 mAh Battery, 4GB of RAM, etc which price is 25,000. Second has the same feature but the price is around 15,000. 9
  • 10. “ CONCLUSION Changing your self with changing environment is more important to survive in this enormous sea of electronic market. As we seen that Micromax is not ready to change then it is easy for new players to increase there dominance in Indian market like China 10