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Videocon’s Operations
(Consumer Durable Industry)
By
Joyner Gwendolyn Rodrigues.
Student Id – 3769537
Analysis Of Videocon‟s Operations
Project report
By
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Analysis Of Videocon‟s Operations
EXECUTIVE SUMMARY
Videocon Industries Ltd is one amongst, India‟s major business conglomerates. The
corporation operates in four key sectors, namely – Consumer Electronics and Home
Appliances, Display Industry and its component, Colour Picture Tube Glass and lastly Oil
and Gas. (Company Profile - Videocon, 2009)
This report shall analysing the Consumer Electronics and Home Appliance sector of
Videocon Industries Ltd i.e. Videocon‟s Consumer Durable Operations.
In the second part of the report circles around the international business environment
of the Consumer Durable Industry, in terms of the products available, the market
segmentation and demand, and the structure of the industry‟s value chain.
The third part of the report will emphasise on the operations of Videocon Industries
Ltd, in terms of the strategies followed by the company, the structure of the company‟s value
chain and how the company has developed and evolved over the last couple of years.
The last part of the report i.e. the fourth part will state how the Global Consumer
Durable Industry is changing and the future trend the industry will face. Based on the altering
scenario of the industry, conclusions and recommendations have been made for Videocon
Industries Ltd – Consumer Electronics and Home Appliances sector, so that the company can
have a completive advantage.
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Analysis Of Videocon‟s Operations
TABLE OF CONTENTS
IV.REFERENCES .................................................................................19
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Analysis Of Videocon‟s Operations
For the purpose of this study, we shall only analysis the Consumer Electronic Industry
along with the Home Appliance industry as Videocon Industries Ltd is engaged in the
products of these two types of consumer goods.
a) Consumer Electronics
Electronics which are used for entrainment and communication everyday are
classified as consumer electronics. Televisions, Music Systems, MP3 players,
Personal Computers, Telephones, Camcorder etc are considered as Consumer
Electronics.
b) Home Appliances
Electronic that are primary for household use like cooking, cleaning and
ventilation are known as Home Appliances. Microwaves, Air Conditions,
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Analysis Of Videocon‟s Operations
Refrigerators, Washing Machines etc are some of the commodities that come under
Home Appliances.
c) Market
All countries in the world are a market place for consumer electronics and
home appliances. There is no specific market place. Similarly they are no specific
production place, as manufactured by companies all over the globe. at present the
companies from Japan, South Korea and the USA control the International Consumer
Electronic Industry and Home Appliance Industry.
Cost reduction due to Economies of scale. Regional and local channel for distribution.
Competition face globally by all companies. Other local norms and standards.
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Analysis Of Videocon‟s Operations
Each and every industry in the world is faced several pressures that oblige the
industry to integrate globally. While there are some pressure that make an Industry to act
more locally responsiveness towards a country. The table on the previous page distinguished
between pressures which force the Consumer Durable i.e. – Consumer Electronic and Home
Appliance Industry to integrate global and to be local responsiveness. From the table it is
visible that the Consumer Durable Industry in terms of Consumer Electronics and Home
Appliance is more of a global industry. However the products have some minute modification
made based on the local regional standards and small demand. E.g. India consumers demand
a higher level of cleaning in washing Machines as the whiteness of clothes represent
cleanliness, Danes prefer spin dry while Italian and Greek prefer clothes line.
C. Value Chain
In term of the
Figure 2.1 (Bua Consulting , 2010)
supporting activities, the
companies within this industry have R&D centre across many countries in the world,
especially in Japan, Korea and Europe. Many firms Human Resource as most of the
companies establish them self as a diverse cultural company catering to the whole
world need. Procurement of components is also done true supplier who all spread
across the world.
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are low in Mexico, China, India, Brazil and other low cost areas. The industry has a
standardize marketing plan for the entire globe, due to the convergence of customer
taste and preferences worldwide. Presently, various companies in the Industry give a
global warranty and after sales service.
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Analysis Of Videocon‟s Operations
A. Company Snapshot
In 1985 Shri Nandlal Madhavlal Dhoot founded the Videocon Industries Ltd and
developed the first coloured television in India. With the passage of time the company got
engaged into developing, manufacturing and distribution of colour televisions, along with
other home appliances like refrigerators, washing machines, air conditioners, microwave
ovens etc. (Hem Securities Limited, 2010) Today Videocon Industries underneath the
umbrella of the Videocon Group, has emerged as the 2.5 billion USD company. (Company
Profile - Videocon, 2009) The Company, along with its subsidiaries, operates in Consumer
Electronics and Home Appliances, Display Industry and its component, Colour Picture Tube
Glass and lastly Oil and Gas. The company operates not only from India but also from other
main regions in the world. With new horizons on the break, there is merely no pause on the
company‟s growth and the world is the Videocon playing field.
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The Group is rated among India‟s Top 15 Business Houses along with being rated as
one of the 100 Emerging Giants of the World according to a Boston Consulting Group study
in addition to being rated amongst the Top 15 of India‟s „buzziest brands‟ by agencyfaqs in
2010. (Videocon Group, 2010)
B. Experience Change
Within two decades since its incorporation in 1985, Videocon has made many
changes in all aspects of it business. The company has changed its logo, appeal and also its
corporate strategy in order to adjust to the recent global environment and stay in the race.
Videocon changed it logo from the traditional giant solid silver “V" to a more fluid
lava type “V”. (Videocon Group, 2009)
The solid silver “V" with the two “E” symbol, which stood for strength and
robustness along with the passion for global impact by being a group that was interest in a
wide spectrum of interest ranging from „Electronics to Energy‟ was what how the brand
perceived itself before. (Videocon Group - Seth Nandlal Dhoot Hospital , 2006)
When one glances at the company‟s new logo, it is visible that the company is trying
to portray itself as an eco friendly company with a fresh outlook and to give a feel that the
Videocon always on the move. With its Videocon is trying to strike a chord with young
audience (Videocon Group, 2009) and thus targeting the present youth of the globe. The new
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logo also gives a feel that the company‟s going global. Using the colour of nature, i.e. green,
Videocon has give a feel that it product are environmentally aware and with respect to world
environmental standards.
According to Mr. Kim, C.E.O of Videocon, the rationale behind company‟s brand
change comes from the company‟s regular attempt to listen and respond to evolving market
dynamics all over the world. He also adds that the new tag line – “Experience Change”, will
mark the commencement of transform for customers of durable products. (Experience change
with eco-friendly identity of Videocon - Televisoinpoint.com, 2009)
In 2008 Mr Kim became the C.E.O of Videocon Industries, (Videocon Group, 2009)
this goes to show that the company changed its Corporate Structure which was a family
owned and managed business to a more global Corporate Structure.
C. Operations
Meet Indian Government‟s Rules and Regulations along with the standards of
other nations.
Respond to Indian Local Competition.
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Analysis Of Videocon‟s Operations
In order to fit a global strategy Videocon as segregated the company‟s value chain
across many countries, so that it can get the maximum profits and reduction of cost. Beside
India, the Group has several manufacturing and R&D Centres stretched across The Americas,
Europe and Australasia that are continuously functioning and operating towards establishing
universal quality products by deploying the most state-of-the-art technology. (Videocon
Group, 2010). Besides having its presence in India, the Indain Mulinational has its presence
in Poland, Italy, Korea , China , Dubai, Oman, and Japan.
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a) India
Vediocon is an Indain Mulinational, in this section we shall see how having its
headquaters and manufacturing units in India, has helped the company to have some
competive advantage based on the Poter Diamond.
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b) Mexico
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c) Italy
Videocon entered Italy by acquiring the Thomson CPT plant in January 2005
(Videocon, 2009). The factors that contribute to Videocon expansion in Italy are as
below
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VIDEOCON CONSUMER DURABLE
VALUE CHAIN ACROSS THE WORLD
Analysis Of Videocon‟s Operations
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I, re -quote Thomas Friedman words that the world is becoming flatter day by
day. Due to the integration and liberation economies of countries the globe has
becoming a levelled playing field for all companies to play on.
The industry in the future may continue to set up plans in even lower cost
production areas like Philippines, Brazil, Portugal, and Sri Lanka. R&D may even
move to countries like India, where the country is advancing a technological hub of
the future.
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Besides having a good product line, the company needs to invest more on it
marketing, advertising and promotion techniques. It is mainly because if not
concentrating on it marketing strategy, that the company has lost market share in
India.
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IV. REFERENCES
An Indian brand fights back - Asian Times. (2005, August 18). Retrieved June 19,
2010, from Asian Times Online:
http://www.atimes.com/atimes/South_Asia/GH18Df01.html
Aswathappa, K. (2005). International Business. New Delhi: Tata McGraw-Hill.
Bua Consulting . (2010). The Value Chain - A Framework for Business
Improvement - Bua Consulting. Retrieved June 20, 2010, from Bua Consulting
Website: http://www.buaconsulting.com/Value_Chain
Company Profile - Videocon. (2009). Retrieved June 20, 2010, from Videocon's
Corporate Website:
http://videoconworld.com/index.php?option=com_content&view=article&id=2&It
emid=3
Connect In.com. (2010). Videocon Brand Bio . Retrieved June 23, 2010, from
Connect In Website: http://connect.in.com/videocon-brand/biography-
303126.html
Corporate Finance International. (2007). Corporate Finance International -
Consumer Goods. Retrieved June 20, 2010, from Corporate Finance International
Website: http://www.cfi-network.com/SubPage.aspx?id=3679
Experience change with eco-friendly identity of Videocon - Televisoinpoint.com.
(2009, July 6). Retrieved June 22, 2010, from Televisonpoint.com:
http://www.televisionpoint.com/news2009/newsfullstory.php?id=1246884628
Flubber-based Logo - Brand New. (2009, August 20). Retrieved June 21, 2010,
from Brand New: http://www.underconsideration.com/brandnew/archives/flubber-
based_logo.php
Griffin, R. W., & Pustay, M. W. (2009). International Business. New Jersey:
Pearson Prentice Hall.
Hem Securities Limited. (2010, March 3). Hem_Videocon.pdf. Retrieved June 20,
2010, from Money Control:
http://www.moneycontrol.com/news_html_files/news_attachment/2010/Hem_Vid
eocon.pdf
Hem Securities. (2010). Company Profile - Videocon. Mumbai: Hem Research.
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