Case for Walton Technologies Corporation

Walton Technologies Corporation is one of the sister concerns of R.B. Group of companies Ltd.
is now one of the leading companies in Bangladesh. It holds its long cherished desire to be the
Number One Company in Bangladesh both in volume and turnover. which inspired it to go for
expansion of its market internally to establish as a high quality achiever. Walton Group of
Industries was founded by S.M Nurul Alam Rezvi in 1977 as a trading company. Over the next
three decades the group diversified into steel, textiles, electronics and automobiles. Walton
entered into the steel industry in late 1970s and the electronics and automobiles in early 2000s;
these areas would drive its subsequent growth. Since the 2000s Walton has expanded towards
electronics and automobiles and these became its most important sources of income.

SMART PHONE WALTON MOBILE is currently offering 54 android operated smart phones of
different price ranges and configurations under the sub-brand name of “PRIMO”. Some example
of the products are, “Primo ZX3”, “Primo GF5+”, “Primo N3”, “Primo EF5”, “Primo S6” etc.
FEATURE PHONE Presently, 24 feature phones also known as bar phones are being offered by
WALTON MOBILE under the name of both sub-brand “OLVIO” and parent brand “WALTON”
at various price ranges with different features. Example of feature phones would be “L10”,
“MM14”, “Q36”, “MH15” etc. WALPAD At this time, WALTON MOBILE is offering 8 tabs of
both android and windows platform under the sub-brand name of “Walpad” with different price
tags and configurations. Example of walpads are:- “Walpad G2”, “Walpad G2i”, “Walpad 8X”,
“Walpad C”etc.

ACCESSORIES WALTON MOBILE is now providing nice and stylish flip covers, back covers
and screen protectors as accessories of WALTON smart phones, walpads and laptops. Moreover,
3 types of earphone namely:- “Premium Headphone”, “Rock & Roll”, and “Classic
Headphone” are being offered in different prices. Furthermore, 7 kinds of power banks of diverse
designs, capacity, and prices are provided by WALTON MOBILE. Walton mobiles durability
and reliability is as good as any leading global mobile phone brand handset at a competitive price
.Although the management of Walton Mobile Phone is very pleased about its sales in rural area
market, it faces major problems in increasing its sales in the city market .The main reasons for
this problem are Walton Mobile Phone company is a latecomer and simply cannot assure the
quality of the product according to the demands of the city market consumers.

Md Mortuza Ahmed, Sr. Executive ,Business development & Research and Rumana
Amin ,chairman of the board, recognize the gravity of the problem. They observed that city
market customers are accustomed to using the extra featured Smart phone of Samsung (J
series ,galaxy series, S series),Xiaomi (Note series, S series, Pro series) and so on.
So many suggestions have been offered by the executives of Walton to solve the problem ,but
top management as well as the board ,was uncomfortable with these solutions for several
reasons. The CEO primarily prefers one recommendation, introducing new product according to
the demand of the city market customers that could help to solve the problem. The monthly
meeting of the Board of directors is set to commence at 3:00pm.

The conversation between the managing director and the Research Manager I the board meeting
is described below:

M.D : From the current market survey, we know that currently Walton Mobile Phone has a 6%
market share of the handset market in Bangladesh ,whereas Xiaomi has 30% market share. But
Xiaomi makes more profit than Walton. And your proposal is to introduce a new product .What
is your rational?

R.M : To solve the low market share in the city market queries us to introduce a new mobile
handset with new features .Then, we can capture the market.

M.D : Do you know what type of features they want ?

R.M : According to the market analysis ,The city market wants some extra features ,such as
smart phone ,highly secure O-S, dual SIM with dual chipset, android operating system, anti –
scratch body and so on.

M.D : I think these features can easily added in our handset. Can you estimate how much it will
cost?

R.M : Yes, if we introduce a dual SIM with a dual chipset ,we have to add Tk 1500 and the
android O-S is free for us to use. Extra software installation cost Tk 500 and more to have an
anti-scratch body.

M.D : According to your estimates, this may be too costly. Do you think customers will purchase
a costly phone from Walton?

R.M : Yes ,we add some special features that are not available at this cost.

M.D : Have you made a budget plan?

R.M : Yes, I have made a budget for 1000 units with a configuration of 5 megapixel camera with
flash, large display, full touch screen, Dual SIM, dual chipst,4 GB internal memory, up to 32 GB
expandable android O-S, anti – scratch body and 32 class EDGE modem.