Analysis of the strategy made by the Micromax is made. Micromax is a mobile seller, famous in India for low cost mobiles.

1. MICROMAX
Largest Indian Mobile company
Suryakumar T
VIT BS

2. Introduction
• An Indian Consumer Electronic company.
• A Private Limited Company.
• Has started its journey as a software company since 1999, located in
Gurgaon, Haryana, India.
• Entered Indian Mobile Handset business in the year 2008.
• Ranks First position in Indian Market.
• It has focused mainly on Rural Market.

3. Competitors
• Samsung
• Apple
• Nokia
• LG
• Other Chinese Manufacturers

4. Challenges
• Often perceived as a Chinese brand.
• Had severe competition in urban market.
• An image correction was required in the minds of customer.
• A brand strategy needed to fade the memories of Nokia from customers
mind who was the giant in Mobile Handset in India.

5. Strategies
• Sponsoring Indian Cricket Matches - Took the title from major sponsor Hero
Honda and did sponsor a lot of series. With this strategy they reached to millions of
customers.
• Reach to Indian market - They opened outlets and service centers more
aggressively than any other mobile company even beating Nokia.
• Right product strategy - Right product at right time at right price.
• Dosti with Android - They were fully dependent of Open source Android. They
do customization and launch it in the market.
• Introduction of Celebrity
• They support Modi’s cause “Make in India”.

6. Decline in the Growth
• 2010 – 4.5 times revenue growth
• 2011 – Lagged the growth
• Assurance of the products sale is not made, while they concentrated only on
selling the products to the retailers.
• Delay in realizing the market demand

7. Overcoming the decline
• Providing strategic decision
• Supply chain
• Quality and service
• Steam lining channel communication
• Re aligning product portfolio
• Stream lining geographies

8. Growing Pains - Obstacles
• Wining trust :
• Founders are not willing to give their 100% work to some one unknown.
• Autonomy strategy – Major decisions made only by CEO’s not by the major heads.
• Poor acceptance from the colleagues.
• Zero presence of CEO and need of multiple approvals for considering a decision.

9. Growing Pains - Contd
• Enforce accountability:
• No goal settings and no accountability
• Loyalty is more worthier than educational qualification.
• Not much importance to education and their Recruitment made with their close ties.
• Stats – 80% work completed by 20% people.
• Target are not being met properly (60 out of 400 outlets).
• Employees Bypassing the managers, unable to get rid of under performers.

10. Growing Pains - Contd
• Gaps in process and systems
• Deficit in formal processes that would conduct business at large scale.
• Poor process orientation made bad decision making
• Gaps prevented identifying potential problems in supply and distribution.
• Early employees got accustomed to the old systems and process and they are not being
versatile.
• Implementation gap (Slow acceptance).

11. Growing Pains - Contd
• Talent Gap
• Second level of management is not strong. Less qualified people is hired as it is a low-
margin process.
• Didn’t hired highly qualified people instead planned for training the existing ended in
vain.
• Their plans and strategies are old, where they are focus restricted to distributors itself.
And not a customer focus.

12. Growing Pains - Contd
• Founder centric culture
• Founders are involved in the hiring and rewarding the employees.
• Made into bottleneck in organization processes and system.
• Entrepreneurial skills made to run the business from scratch. Mentoring skills also
helped them.
• MBWA – Management by walking around. Conflicts in the decision.
• Bypass the CEO to meet and founders to address any issue or decisions.

13. THANK YOU