Analysis of Micromax Informatics Limited success in Indian Mobile Industry

1986 Words4 Pages

Executive Summary

India is the second largest and the fastest growing telecom market in the world in terms of number of wireless connections, according to the Telecom Regulatory Authority of India (the "TRAI"). The growth in wireless connections has facilitated the growth of Indian mobile handset industry. The Indian mobile handset market posted revenues of Rs 35,946 crore in FY 13.

The Mobile handset market was dominated by MNC’s like Nokia, Sony, Motorola and Samsung till 2008 when these MNC’s controlled more than 93% of the overall handset market. The high growth in this industry coupled with high profits prompted several players to enter into the market. Micromax was one such Indian player which entered into handset business in 2008.

Micromax which entered into Handset business has grown rapidly and now controls 13% of overall handset market and 19% of overall Smartphone market in India and is now the second largest player after Samsung.

The report analyses various internal and external factors which has helped in the success of Micromax. Some of the major factors indentified in this report for this success are:

 Rise of Android

 Innovation by Micromax

 Asset light business model.

 Agility and rapid execution.

 Branding and marketing

 Optimum balance of durability, features and price

 Extensive nationwide distribution network

Methodology

The research group studied in detail the mobile handset segment in India from the perspective of handset players in general and Micromax in Particular. The report is written by the group based on analysis of extensive secondary data collected through online and print media and the insight provided by Professor Saroj Kumar Pani.

Contents:

# Content Page

1 Overvie...

... middle of paper ...

... with $1 billion (about Rs 6,000 Crore) in revenue and to grow it by up to 50% in the next financial year, half of which will come from Smartphone sales. Micromax is also talking to Microsoft to bring out a version of the Windows Smartphone.

8. SWOT Analysis

Strengths

1. Innovative products

2. Asset Low production model

3. Effective promotion campaigns

4. Professional team

5. Market Share

6. Strong distribution channel Opportunities

1. Huge consumption Market

2. Government support for local players

3. Increase penetration in urban market

4. international markets

Weakness

1. Brand image in urban areas

2. Low-quality brand Perception

3. Reliance on imports for critical components

Threat

1. Competition from local and international players

2. Easy Replication of business model by competitors

3. Exchange fluctuations

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