KEYS TO STRATEGY AND SWOT ANALYSIS

KEYS TO BUSINESS STRATEGY SWOT ANLAYSIS LogoParent CompanyMaxx Mobile Communications Ltd.CategoryMobile phone HandsetsSectorTelecommunicationTagline/ SloganKuch karo maxx karoUSPModerate functions at low priceSTPSegmentLow-Medium range Basic Phones marketTarget GroupLow income consumers, Tier-2 cities, VillagesPositioningReplacing the Biggies like Nokia, Samsung from the low end phones market. As a second phoneSWOTStrength1.Provide simple functions at much lower costs e.g.- Loud speakers, wireless FM, ultra long lasting battery life 2.Regional languages support, Indian calendars, Torch 3.Most phones are dual SIM/Triple SIM phones 4.Due to Java support a lot of basic applications can be run5.Celebtrity brand ambassadorWeakness1.Poor after sales support 2.Many consumers in this group still trust Nokia 3.Build Quality is inferior, Tacky looks, Low resolution and small screens, Higher Radiation levels, Complex 4.User interface for not so tech-savvy consumers , UnreliableOpportunity1.Low-end phones market has become very competitive 2. Cut-throat competition has made Dual-SIM phones being available 3.Can be used as simple second phonesThreats1.Threat from low price well known brands 2.Other lower end phones brandsCompetitionCompetitors1.Nokia Low-end Dual SIM phones 2.Lava3.Samsung Guru Series4.Micromax5.Lemon mobiles Facts… About 2.4 billion mobile phones have been sold around the world last year and globally there are more phones than PC’s. World over 350 billion text messages are exchanged across the world’s mobile networks every month. There are 10 million GPRS users. Introduction Maxx mobile phone has graduated to the top with ground-breaking technology and precision. Excellence has been their forte and the Maxx mobiles category, includes a range of user friendly mobile phones including both mid range and high end phones. Maxx mobiles are an outcome of exhaustive R&D, led by a futuristic vision. Maxx mobile phones have thus revolutionized the telecom sector in India. Maxx mobile phones have made a mark as the leading providers of wireless telephony solutions in India. With the introduction of Maxx mobile phones in India, the company has become a frontrunner in creating life-enhancing phone solutions and wireless technology that caters to the progressively demanding needs of mobile users today. Maxx mobile phones are one of the most preferred makes in the Indian market and the enticing Maxx mobile price adds to the appeal. Maxx mobile phones are the result of extensive research and technology. It has striven to remain at the forefront of technological advancement in the country in the quickest way possible. Maxx mobiles remain at the top spot Today, with their dedication to exceed customer satisfaction and steady quest for excellence. Mobile is the latest entrant in the Indian mobile market. It is the leading Mobile Phone Accessories manufacturing &distribution company and was incorporated on January 1st 2004 .They are planning to spend Rs 2,500 core in order to expand their market growth. Maxx manufactures the handsets in China and Taiwan and assembles the parts in India to suit the Indian requirements. They are trying to put up improved and innovative user friendly features in their upcoming cell phones so as to grab the considerable share in the market especially with the mid end segment. Maxx is planning to bring out Braille-enabled mobile phones for the blind. Some of their hand sets can read the blood pressure of the user. Maxx mobiles are offered at a reasonable price. The company says that it is banking on its products’ sharp features, competitive prices and a wide network of service centers across the country to give the brand the competitive edge. Camera, Bluetooth, dual SIM, extensible memory, video player, mobile internet are the common features of Maxx mobile. It offers a free application for mobile credit card processing solution. “MAXX” has gained popularity because of quality product offered as well as various support services provided to its customers. Their dual Sims mobile cost starts from Rs. 3,245/- only. Maxx mobile phones have graduated to the top with ground-breaking technology and precision. Excellence has been their forte and the Maxx mobiles category, includes a range of user friendly mobile phones including both mid range and high end phones Maxx Mobiles in India Maxx mobile phones have graduated to the top with ground-breaking technology and precision. Excellence has been their forte and the Maxx mobiles category, includes a range of user friendly mobile phones including both mid range and high end phones. With the introduction of Maxx mobile phones in India, the company has become a frontrunner in creating life-enhancing mobile phone solutions and wireless technology that caters to the progressively demanding needs of mobile users today. Maxx mobile phones are one of the most preferred makes in the Indian market and the enticing Maxx mobile price adds to the appeal.Maxx mobile phones are the result of extensive research and technology. It has striven to remain at the forefront of technological advancement in the country in the quickest way possible. Maxx mobiles remain at the top spot today, with their dedication to exceed customer satisfaction and steady quest for excellence. BACK GROUND OF THE MAXX MOBILE Maxx Mobile Communications Limited (quot;
MAXXquot;
) is the leading manufacturer of high performance mobile phone batteries and mobile phone chargers in India. The company was incorporated on January 1st 2004 under the strong leadership of CMD Mr. Ajar Agawam.Our manufacturing facility is located at Haridwar, Uttarakhand where a variety & quality of battery and chargers are produced. The company has developed a large distribution network of dealers and distributors across India to market its products under brand name quot;
MAXXquot;
. The brand quot;
MAXXquot;
has established a distinct identity because of quality product offered as well as various support services provided to its customers. The company has started export of mobile phone batteries to overseas market having huge demand from various countries like Hong Kong, Africa, SAARC, CIS and Middle East countries. Maxx has 100% EOU unit at SEEPZ – SEZ Andheri (East) Mumbai, to support export orders. Company has started marketing of mobile phone under the brand name quot;
MAXXquot;
in the domestic market which is supported by 21 branch offices, over 250 strong distributor network and backed by strong customer support/service network across India. VISION AND MISSION ,[object Object],PRODUCTS AND SERVICES  HYPERLINK quot;
http://en.wikipedia.org/wiki/List_of_Nokia_productsquot;
quot;
Mobile_phonesquot;
1 Mobile phones 1.1 Classic series – The Mobira series 1.2 Original series 1.3 mx-111-/mx-678 series 1.3.1 maxx111 series – Ultrabasic series 1.3.2maxx372series – Basic series 1.3.3 maxx333series – Expression series 1.3.4 maxx463 – Active series 1.3.5 maxx555 – Classic Business series 1.3.6 maxx349– Fashion and Experimental series 1.3.7 maxx388 – Premium series PRODUCTS & services…………. 1.5 Other Product 1.4.1 Maxx Mobile Screen Touch Mobile 1.5.2 Maxx Mobile Memory Card & Card Reader 1.5.3 Maxx Mobile Chargers & Batteries  HYPERLINK quot;
quot;
Services_and_solutionsquot;
2 Services and solutions 2.1 Online services 2.2 Software solutions 2.3 Security solutions  HYPERLINK quot;
quot;
Other_productsquot;
3 Other products 3.1 Internet Tablets 3.2 GPS products 3.3 Accessories  HYPERLINK quot;
quot;
Products_marketed_by_Nokia_Siemens_Networksquot;
4 Products marketed by MAXXSiemens Networks 4.1 Telephone switches 4.2 TETRA  HYPERLINK quot;
quot;
Products_marketed_by_Vertu.2C_Nokia.27s_luxury_phones_brandquot;
5 Products marketed by Vertu,MAXXluxury phones brand MAXX MOBILE COMMUNILATION LTD BCG MATRIX The BCG matrix (aka B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis BCG MATRIX……… Question marks - Question marks are businesses or products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Management have to think hard about “question marks” - which ones should they invest in? Which ones should they allow to fail or shrink? Example-Maxx mobile 333-438 series Stars - Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows. Example- Maxx Mobile 388,349 series,Maxx Mobile Battery Cash Cows - Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars. Example- Maxx Mobile Chargers Dogs - Unsurprisingly, the term “dogs” refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Example- Maxx Mobile Screen Touch Mobile GE MATRIX In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU) The GE / McKinsey matrix is similar to the BCG growth-share matrix in that it maps strategic business units on a grid of the industry and the SBU's position in the industry. The GE matrix however, attempts to improve upon the BCG matrix in the following two ways: The GE matrix generalizes the axes as quot;
Industry Attractivenessquot;
and quot;
Business Unit Strengthquot;
whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit. The GE matrix has nine cells vs. four cells in the BCG matrix. Industry Attractiveness The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following: Market growth rate Market size Demand variability Industry profitability Industry rivalry Global opportunities Macroenvironmental factors (PEST) Each factor is assigned a weighting that is appropriate for the industry. The industry attractiveness then is calculated as follows: Business Unit Strength The horizontal axis of the GE / McKinsey matrix is the strength of the business unit. Some factors that can be used to determine business unit strength include: Market share Growth in market share Brand equity Distribution channel access Production capacity Profit margins relative to competitors The business unit strength index can be calculated by multiplying the estimated value of each factor by the factor's weighting, as done for industry attractiveness The 7S McKinsey model: Most of us grew up learning about 'the 4Ps' of the marketing mix: product, price, place, promotion. And this model still works when the focus is on product marketing. However most developed economies have moved on, with an ever-increasing focus on service businesses, and therefore service marketing. To better represent the challenges of service marketing, McKinsey developed a new framework for analyzing and improving organizational effectiveness, the 7S model: The 3Ss across the top of the model are described as 'Hard Ss': Strategy: The direction and scope of the company over the long term. As Maxx Mobile Communication LTD uses multi format retail strategy Structure: The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate). Maxx Mobile Communication LTD applies divisional structure to operate their organization. Systems: Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call centre systems, online systems, etc). As Maxx Mobile Communication LTD do their business in retail, they provide valuable market feedback to manufacturer and wholesaler, such information is useful, production planning and sales planning. The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed 'Soft Ss' by McKinsey: Skills: The capabilities and competencies that exist within the company. What it does best. As Maxx Mobile Communication LTD is more skilled in general merchandise. Shared values: The values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior. As Maxx Mobile Communication LTD trained their employees to meet their customer needs and requirement in best way of providing services Staff: the Company’s people resources and how they are developed, trained, and motivated. Maxx Mobile Communication LTD provide good rate of salary and facilities to their employees. Style: The leadership approach of top management and the company's overall operating approach. Maxx Mobile Communication LTD does their business in organized retailing. ORGANISATION STRUCUTRE: Maxx Mobile Communication LTD comes under ‘Divisional structure. Decision is taken centrally as well as locally at the regional level. Head, Regional Profit CenterMerchandisingHRWarehouse/DCCMarketingOperationsInwardPickingDispatchArea ManagerArea Manageroutlet ManagersCategory ManagersProducePackaged ProductsProcurement TeamManufacturersOutletDispatchCustomersMaterial FlowHead, Maxx mobileMobile TYPES OF STRATEGIES Forward integration strategy: Maxx Mobile Communication LTD has followed forward integration strategy. At starting they launch their own product and afterwards entered in retail business Concentric diversification strategy: Maxx Mobile Communication LTD has applied concentric diversification strategy. As on starting they launched Basic Handset and after that in 2007 they launched Stylish Mobile Conglomerate diversification: MaxxMobile Communication LTD has gone too long. Now Maxx Mobile Communication LTD is doing business from retail to assets management to insurance. Porter generic strategy: Maxx Mobile Communication LTD has applied cost leadership strategy.i.e- on diwali or any other occasion Maxx Mobile Communication LTD gives offers and we get products at cheaper price. CONCLUSION After considering all above points I can say that Maxx Mobile Communication LTD is one of the biggest retail chain markets in India which provides products and services from Electronics to Mobile Accessories. As Maxx Mobile Communication LTD is king of market. They are trying to give maximum satisfaction to their customers by giving product at minor price. Maxx Mobile Communication LTD concentrates not only on what consumer wants but also where consumer wants. As per this strategy they open their retail store all over country. Today the youngster,child,older are going with fashion Mobiles they think that Mobile is like train for them, once it lefts they don’t run for that, they wait for another Maxx Mobile Communication LTD concentrates more on fashionable Mobile. As we have seen in the advertisement of Maxx Mobile Communication LTD they have taken their brand ambassador MS DHONI MOBILE KARNA HAI THO MAXX KARO NAME : SATISH M. YADAV ROLL NO : 15048 SUBJECT : STRTEGIC MGT PROJECTON : MAXXMOBILE SUBMITTED TO : RAHAUL SHAH DATE : 26/09/2009 INDEX NO. CONTENT 1INTRODUCTION TO MAXX MOBILE 2 HISTORY OF MAXX MOBILE 3BACKGROUND OF MAXX MOBILE 4PRODUCTS OF MAXX MOBILE 5SERVICES OF MAXX MOBILE 6 LEVELS OF STRATAGIC MANAGEMENT 7 KEY STEPS TOWARDS STRATEGIC PLAN 8KEYS OF BUSINESS STRATEGY 9STRATEGIC PLANSCONTD…. 10STRATEGIC MANAGEMENT PROCESS 11BCG MATRIX ANALYSIS OF MICROSOFT 12GE MATRIX ANALYSIS OF MAXX MOBILE 13THE 7 S MODEL OF MAXX MOBILE 14ORGANISATION STRUCUTRE OF MAXX MOBILE 15TYPES OF STRATEGIES OF MAXX MOBILE 16CONCLUSION17RECOMMENDATIONS STRATEGIC MANAGEMENT PROCESS More than eight years after it forayed into the retail business, Maxx Mobile Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market. Store operations have never been as important to retailers as they are now. Successful retailers are those who know that the battle for customers is only won at the frontline, which in the case of a retail chain is at its stores. Maxx Mobile was regularly opening stores in the metros and there was an urgent need for a reliable enterprise wide application to help run its business effectively. “The basic need was to have a robust transaction management system and an enterprise wide Platform to run the operations,” says Kapil Dev Thripathi, Director, and Maxx Mobile .The company was looking for a solution that would bring all of its businesses and processes together. After a comprehensive evaluation of different options and software companies, the management at Maxx Mobile decided to go in for SAP. The Solution Some of the qualities of SAP retail solutions are that it supports product development, which includes ideation, trend analysis, and collaboration with partners in the supply chain; sourcing and procurement, which involves working with manufacturers to fulfill orders according to strategic merchandising plans and optimize cost, quality, and speed–variables that must be weighted differently as business needs, buying plans, and market demand patterns change; managing the supply chain, which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements; selling goods across a variety of channels to customers, which requires marketing The implementation “The implementation was outsourced to a third party. The implementation was done by the SAP team with help of Nova soft which is based out of Singapore,” says Thripathi. Some people from Maxx Mobile also assisted in the project. About 24 qualified people worked on this SAP implementation. SAP was chosen as the outsourcing party on a turnkey basis. Three Phases SAP implementation is not a single phase process. The project was divided into three phases. The first phase involved blueprinting existing processes and mapping them to the desired state. In this phase, the entire project team worked on current processes within the structure of the organization, analyzed and drafted them. This blueprint was later used in the formation of new states of the solution. Since the SAP would combine all the processes, each and every one of these had to be evaluated. In the second phase, the SAP platform was developed with the help of Nova soft’s template which was predefined by SAP after evaluation of Maxx Mobile needs and expertise in retail solutions. The last phase in this project was for stores to switch over to the new system and for current data to be ported. Before the SAP implementation, all the data was unorganized. This data had to be migrated to the new SAP application. The project was flagged off on 15th June 2005 and took about six months to finish. It went live at the head office on 1st January 2006. The stores went live on SAP from 1st January 2006 to 30th June 2006. Three Phases SAP implementation is not a single phase process. The project was divided into three phases. The first phase involved blueprinting existing processes and mapping them to the desired state. In this phase, the entire project team worked on current processes within the structure of the organisation, analysed and drafted them. This blueprint was later used in the formation of new states of the solution. Since the SAP would combine all the processes, each and every one of these had to be evaluated. In the second phase, the SAP platform was developed with the help of Novasoft’s template which was predefined by SAP after evaluation of Pantaloon’s needs and expertise in retail solutions. The last phase in this project was for stores to switch over to the new system and for current data to be ported. Before the SAP implementation, all the data was unorganised. This data had to be migrated to the new SAP application. The project was flagged off on 15th June 2005 and took about six months to finish. It went live at the head office on 1st January 2006. The stores went live on SAP from 1st January 2006 to 30th June 2006. More than eight years after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market. Some of the qualities of SAP retail solutions are that it supports product development, which includes ideation, trend analysis, and collaboration with partners in the supply chain; sourcing and procurement, which involves working with manufacturers to fulfil orders according to strategic merchandising plans and optimise cost, quality, and speed–variables that must be weighted differently as business needs, buying plans, and market demand patterns change; managing the supply chain, which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements; selling goods across a variety of channels to customers, which requires marketing and brand management; managing mark-downs and capturing customer reactions, analysing data, and using it to optimise the next phase of the design process. More than eight years after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market More than eight years after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market More than eight years after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market.More than eight years after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market Some of the qualities of SAP retail solutions are that it supports product development, which includes ideation, trend analysis, and collaboration with partners in the supply chain; sourcing and procurement, which involves working with manufacturers to fulfil orders according to strategic merchandising plans and optimise cost, quality, and speed–variables that must be weighted differently as business needs, buying plans, and market demand patterns change; managing the supply chain, which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements; selling goods across a variety of channels to customers, which requires marketing and brand management; managing mark-downs and capturing customer reactions, analysing data, and using it to optimise the next phase of the design procBenefits and Challenges The key challenges in this project were not in the implementation. Rather, the difficulties were faced during the data migration and in managing the interim period when the project was underway for about six months. Migrating unorganized data to an organized format is a challenging task. Maxx Mobile has not been able to see immediate benefits from this implementation. This application certainly has long term benefits which will be seen when the performance of various aspects will be analyzed. STRATEGIC PLANS Maxx Mobile group is a large Indian conglomerate with diversified business interest and and have been promoted by Kishore Biyani.. The company aimed at providing total satisfaction to the customers through wide variety of items, right pricing, pleasurable ambience, excellent service, best quality and convenient visual merchandising. Its business has grown from one store in Kolkata in 1997 occupying an area of 8,000 Sq. ft. to 72 stores, apart from our 22 factory outlets located in multiple cities occupying an aggregate area of 21,07,608 Sq. ft. Maxx Mobile has been a maxx in introducing the concept of mega retail stores in India called Maxx Mobile for the entire family. In an extremely price-sensitive market like India, the Maxx Mobile chain of stores has been successful in maintaining the equilibrium between quality and price. Maxx Mobile outlets have been positioned as a complete family destination providing value-for-money goods. Each region has a Regional hub. Under their control is several Distribution Collection Centers. The primary function of these DCC is to distribute the products across the Maxx Mobile retail stores. They believe that their most valuable assets are their people, young in spirit, adventurous in action, with an average age of 11 years; they are skilled & qualified professionals. Maxx Mobile has its marketing strategy to stay ahead in the competition like Maxx Mobile is the title sponsor of the event Famine Miss India 2007. Maxx Mobile is buying prime areas, instead of taking rentals as rentals are now fifty per cent higher compared to what it used to be. Maxx Mobile own stores will also stock non-apparel related merchandise such as stationary, pens, gifts and toys for the film. The company that has grown at a tremendous pace is now faced with the challenge of keeping the ball rolling, with competitors starting to get their act together. While Maxx Mobile has consistently managed to execute its expansion projects, forays into new categories will have to be equally successful for it to be able to deliver the kind of growth it has managed in the past. Given its ambitious expansion plans, Maxx Mobile is likely to sustain its first mover advantage. While new stores would drive revenue growth, sustaining customer attention once the novelty of a format wears off is a challenge. Maxx Mobile operates in a competitive environment. The company has integrated backwards into garments manufacturing even as it expanded its retail presence at the front end, well before any other retail company attempted this. It was the first to introduce retail departmental store for the entire family through Pantaloon in 2007. Today Maxx Mobile is the fastest growing mobile company in India. In our assignment we have focused only on the retail mobile chain of Maxx Mobile and not on the complete Maxx Mobile corporarion Pvt Ltd. which includes stores under the name of maxx mobile LEVELS OF STRATAGIC MANAGEMENT Corporate strategy Maxx Mobile Retail is investing in new business lines, which would catalyze consumption within the company’s Mobile stores. In line with this strategy, the company has invested in different new businesses such as capital, consumer finance, brands, and media, through joint ventures with various companies across the world. Maxx Mobile is planning to strengthen its business in India through openings new stores in all retail formats, technology up gradation to maintain a cost effective inventory management and better customer service.Maxx Mobile operates in three segments of the retail value chain: wholesale (procurement of stocks), operations and distribution (warehousing and transportation) and sales (physical store operations, online sales and other channels). The company does not have a presence in two other sections of the retail value chain: raw materials and manufacturing.Maxx Mobile has entered several joint ventures to add new and branded products in its portfolio. The company offers office products through a joint venture with Staples, and telecom equipments through an alliance with Axiom Telecom. Such alliances would help it attain international appeal and enhance the customer shopping experience. Business strategy In March 2006, the Maxx Mobile Knowledge Group, as part of its restructuring and expansion plans, changed its identity to the 'Future Group.' The new group was set up to drive growth through the use of consumer insights and scenario planning to design future retail delivery formats.. Recommendations 1. Creating a BBM like pin messaging system for Simian, Memo, mix series and ms series phones. Hell they could even change the game up by extending this to mid-high end Series 60 phones. 2. Get the support of application developers. This was a major turning point for apple however Maxx Mobile really needs to get the support of consumers before 3. Instead of trying to churn out quot;
I phone killersquot;
Maxx Mobile should instead seek to create a device which is unique 4. Maxx Mobile needs to pay more attention to other markets such as the Caribbean and Latin America which are gobbling up phones. However, the BB craze is now so cemented in those markets Maxx Mobile may have a hard time.5. Maxx Mobile should seek to have firmware updates available to all MX series 6. Maxx Mobile needs to preserve their high end customers, customers that used to use MX88, MX95, MX468 etc many have gone to Blackberries and I phones.7. They need to also develop their OS(s) more, find ways to improve it and make some innovations that are going to wow people. Apple has done this with fairly simple things. Surely Maxx Mobile can do the same.Maxx Mobile will never fail because they dominate the low end market and to some extent the mid end market. However, the world is changing people are getting more and more into technology. Many people from low income brackets are in fact using Blackberries and I phones therefore Maxx Mobile needs to return to dominance in the high end market.

KEYS TO STRATEGY AND SWOT ANALYSIS

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