It has one of the largest distribution networks in India with more than 15000 touch point.
Manufacturing plants- thane (MAHARSHTRA),Dadra, Pantnagar (UK) and Tirupati.
The total staff strengths of Voltas limited (stand alone) as on 31 march 2018 was 4769 employees including 2154 contract staff, primarily for overseas projects.
On a consolidated basis, total manpower as on 31 march 2018 was 8118, including 5228 contract staff. The international projects business including overseas subsidiaries/joint ventures had 4195 contract staff.
4 P’s + Customer + Reputational Assets + Other resources & competencies Product: The product strategy of Voltas focuses upon its end users.
HVAC&R are the products which stands for heating, ventilation, air conditioning and refrigeration.
Voltas covers these categories by its products like high performance split air conditioning, energy efficient AC, ductable split units, variable refrigerant flow system, chiller and condensing, etc.
Price: Voltas has done its pricing in different categories differently.
For household items, its pricing is affordable. For industries, it has done a nominal pricing. Voltas provides value for money to its customers.
Place: Voltas has its head office in Mumbai and zonal offices in Mumbai, Kolkata, Chennai and Delhi. It has its branch offices in all major cities of India.
Promotion: Voltas follows 360 branding in its promotion strategy. It also does CSR activities which includes vocational and skill development, education, health and disaster relief, etc.
Chief executive officer and Managing Director :- Pradeep BakshiDeputy Managing Director : Anil George
Director:- Nani JaveriVinayak Deshpande
Debendranath sarani7. Company Culture & Incentive System VISION-
Driving value through smart engineering.
Organization will offer their clients proper engineering solutions in the form of products and services of superior value in our subject matters and experience air conditioning, refrigeration, electro-mechanical works, water management, electrification, and industrial capital equipment- so as to build and sustain market leadership.
1. Physical Resources Headquarter-Mumbai ,India
The Videocon group has 17 manufacturing plants in India like in Rajasthan ,Mumbai,Uttarakhand,Uttapradesh etc.
The group also have a manufacturing plant in mainland china.
The company has distribution network of 9000 India which is going to increase to 13500 sellers .As compared to Voltas Ltd ,Videocon industry have relatively less distribution point.
As compared to Voltas limited which is a leading ac manufacturing company the Videocon group has high financial resources where the company Voltas ltd has a total asset of Rs 47.45 billion the Videocon group has a total assets of 286.81billion
Human Capital Resources CEO
Venugopal Dhoot Directors
The company have total workforce of 9000 employees.,The Videocon group has a high no of employee as compare to Voltas ltd the group has an employee strength of 9000.
NON CFC Refrigerant AC development for environment protection against Global warming and Ozone layer depletion.
Inverter AC development i.e., energy efficient AC, Energy consumption reduction and better comfort for customer due to variable speed compressor running through DC inverter technology.
Videocon provides the most reliable solar panel that comes with 25 years of linear power output warranty and 10 year panel warranty.
In comparison to Voltas ltd Videocon has a less market share because of some new advance and innovative technology such as Ubiquitous Sensor Network for Smart Cooling,this is one the new technologythat has been introduced by voltas recently.
4 P’s + Customer + Reputational Assets + Other resources & competencies Product
Videocon India deals in several products such as
Consumer electronics – TV, Audio systems
home appliances-this section comprises of grinders microwave, AC
Compressor that are used for AC, monitors for computers etc.
In India Videocon has seventeen manufacturing plants and it has manufacturing units in Mexico, Italy, Poland and china.
The company has established a an organised networking channel that will enable it to handle its distribution policies.
1 ton and 1.5 ton price ranges from 289-3
Videocon Refrigerators ranges from 0-81000 in rupees including (LCD and LED TV)
Videocon microwave oven prices ranges from -3699-13000 in rupees.
Promotion-Videocon has been launching continuously a range of new products to maintain and gain new customers.
He company has distinction of launching the 3d sets of televisions and washing machine with tilt drums facility.
The company free camps at regular intervals to understand and solve the consumer problems.
Videocon in its brand makeover has come up with a new logo that “V” engraved to represent a new and fresh identity.
They also come up with promotional advertisements shown on every television channel , radios and billboards. Amitabh Bacchan was the brand ambassador of Videocon d2h.
They also use display vehicles for promotion.
Porter’s Five Forces Model (videocon) industry forces important players potential impact on the firm current direct competitors
BLUESTAR The potential impact of these competitors are very high as the competitors among the existing market increases the market share of the company will goes down.
It is expected that realization will fall with the increasing competition.
HYUNDAI If there is a new direct competitors enters into the market and with a very advance technology there would be a decrease in the market share of leading companies like Voltas, Daikin.
Recently some of the new direct competitors like Hyundai, Koryo comes into ac market and providing a very improved air conditioners at a very nominal cost which is comparatively lesser than the price of Ac’s comes from leading companies.
Indirect Competitors Pedestal mounted fan
Bladeless fans These pedestal fan have an significant market share since air conditioners are of very high cost so people who comes from a middle class or poor class family usually prefer these fans over AC’s so they are an indirect competitors to AC’s market.
These bladeless fans are an indirect competitors of AC’s market with this new technology consumers are shifting to the use of bladeless fans to the great extent.
M/S ZR TRADERS These suppliers also plays an important role for Videocon industry they are providing essential components to the company. If the suppliers increase the prices of components such as compressor, metallic wires then the cost of production will increase which will ultimately increase the price of the product.
BUYERS Users of air conditioner’s These are the most important forces of the market which will have an impact on the sale of the Videocon.
Nowadays the buyers are more literate now they can compare the prices of our product online and if they find that the product is relatively of high cost they can shift to another company.SO because of high substitutes of Videocon availability in the market the bargaining power of customer nowadays is very high.
Good customer connect – Videocon has a very good customer base and a research on consumer behaviour is very high which helps the company to produce goods with the customers wants.
History: the company has a very rich history of presence in the electronic segment market, Videocon is the first company in India to have a license in making color TV and it also diversified in making washing machines and air conditioners. Scaling up of operations-Videocon has very segments with lots of subsidiaries and there is high competition in each of the domain. In order to be profitable the company needs to scale up their operations.
High stakes in consumer electronics-the company is fully dependent on the consumer electronics segment of the company where as the company is still struggling to compete with their major competitors such Voltas, Daikin, whirlpool who comes in the market with more innovative technology and covers the major share of durable market.
National electronic policy and government initiatives. Reduced custom duty on certain inputs online metals, wires, cables, refrigerator compressor parts will promote the consumers electronics in India.
The government of India is encouraging FDI by providing permission for FDI in electronics hardware -manufacturing under the automatic route.
Government allowed 51% FDI in multi brand retail and 100% in single multi brand retail.
In February 2019, the govt. of india approved the national policy on electronics 2019.this policy aims to create an ecosystem for a globally competitive electronic manufacturing sector and to achieve a turnover of about US$400 billion by 2025.
Fluctuating exchange rates. Demand for consumer durables in India has been growing on the back of rise in disposable income of an individual.
Consumer durables such as mobile phones, laptops etc. will cost more, as the depreciating value of rupee will cost more to import and ultimately become costlier for the final consumers leading to less demand for durable goods.
Change in lifestyle With the rise in population, Indian market is a most favourable place to do business for fmcd industry because rise in population will ultimately leads rise in demand for consumer durable goods.
With the rise in disposable income of the customer the fmcd industry has a potential to grow more in such a favourable condition because with the rise in income the lifestyle and preferences of consumers are also changing leading growth for fmcd industry.
TECHNOLOGICAL Artificial intelligence and IOT.
Strong focus on research and development. Artificial intelligence and IOT is playing a key role in development of fmcd industry.
Nowadays companies are focusing more on their research and development leading towards growth of fMCD industry.
Time taken for resolving cases in court. Various indirect taxes have been imposed by the Indian government such as GST with increase in GST the cost of production of consumer durables will increase which ultimately will increase the price of consumer durables in the market.
Employment laws like minimum wages, no of working hours.
Prestige has to consider average time of specific cases before entering into international market.
Laws regulating environmental pollution Weather is one of the important factors that effects the consumer durable goods demand in India like in the summer season demand for air conditioner’s started increasing.
There are certain laws which regulates the environmental pollution in the market where the company have to fulfill those certain guidelines regarding environmental pollution such as environment protection act of 1981,the objective of hazardous waste rule etc. these rules have always a significant impact in the fmcd industry.
Increasing demand of AC’s in tier 2 and tier 3 cities and towns.
10% of low market penetration results in high growth potential capacity Cooling products based on new innovative technology.
Because of increasing pollution and global warming leads too less manufacturing of air conditioners as compared to next years.
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