Marketing @ Knowledge Zone



Re-inventing Videocon

- by Manasi Panigrahi *

Previous

Page - 7

Diversification

They are now into diversified into 10 key areas, major holdings like: - Petrocon(O&G division),Videocon appliances, Videocon Communications, Eagle electronics, Electrolux Kelvinator.

The BCG Matrix

   Stars (Appliances)    Question Marks (Entertainment)
   Cascows (Oil & gas division)    Dogs (Leasing & finance limited)

Opportunities

  • Electrolux deal gives licensing rights to sell global brand (Electrolux, Kelvinator, and Allwyn).

  • 151 mn units per a year worldwide CPT market (both in terms of capacity R & D Capability).

  • 2000 patents of Thomson into Videocon's kitty.

  • 17 mn units a year CPT glass capacity.

  • Global presence in countries like Italy, Sudan, Jordan, Poland, China, Mexico, Oman, South Africa, China.

  • It started out as OEM players - first in the domestic market, and then abroad. This strategy helped them strengthen their manufacturing and gain economies of scale.

Challenges

  • Competition in global CPT market especially from integrated players such as LG-Phillips, Samsung, and Matsushita is intense.

  • Rapid adoption of LCD technologies can kill CPT market in 10-15 years.

  • Sourcing contracts from AB Electrolux is not assured.

Next


* Contributed by -
Manasi Panigrahi,
Pursuing MBA, Batch of 2006,
ICFAI Business School, Hyderabad.