A study on the White Goods Corporates
- The concept of business concept
- Elements of strategy
- Marketing in the new millennium
- Strategic marketing
- Evolution of strategic marketing
- The changing Indian scenario and the need for strategic marketing
- White goods sector - Overview
- The major market players
- BPL ltd, Videocon and Voltas ltd
- Research methodology
- Strategic marketing trends
- Demand determinants
- Marketing mix
- Business strategies
- Sub sectors
- Market growth, size and share
Nowadays, it is fashionable to use the word strategy. We hear people talk about defense strategies, business strategies for the game (be it cricket or chess), personal strategies, religious strategies and the like. The word strategy means several things to several people at different point of time. The Collins dictionary gives the following three meanings for the same word.
1. A plan we adopt in order to get something done, especially in politics, economics or business.
2. The art of planning where to place armies and weapons in order to gain the best military advantage.
3. The art of planning the best way to achieve something or to be successful in a particular field.
Even these definitions do not lead us to better clarity. This gives us a broad idea that strategy has something to do with planning to achieve something.
A good strategist will have to combine internal capabilities and external opportunities. Having protective patents was seen as an insurance against competition. Unfortunately technology changes very fast and it can be copied. Having control over resources does not give a great deal of competitive advantage. But the efficiency of conversion has become more important. In this changed scenario, once again the emphasis is shifting to incapable advantages that are derived from softer element, such as culture, beliefs, attitude, etc.
[...] The new company will concentrate on the white goods and brown appliances market. Whirlpool, with a market share of has been gaining continuously and it won't be surprising if the company leads the market by the next year. LG's market share grew very fast to 10% in FY99 (all washing machines market). Its position in the overall semi-automatic segment was fourth (No in the six-kg segment). In the fully automatic segment LG notched up a market share of 37%. During the period January-February 2000, the company's sales grew by 130% in the semi-automatic washing machines in fully automatic machines in direct cool refrigerators in the frost- free refrigerators, and 271% in microwave ovens. [...]
[...] The company has hived off its chemical plant at Patancheru to Raychem subsidiary of Rallies India and part of the white goods business to Electrolux. This has effected the overall topline growth. During FY00, the core business activity namely -central air-conditioning plant and room air- conditioners registered a growth over the previous year's turnover, however, the company's net sales and income from operations dipped by to Rs 8.24 bn. In an attempt to regain a dominating position in air conditioning market, the company has launched a new range of products with warranty and service facilities. [...]
[...] Hence the demand for white goods was subdued for a large part of 2000. Some industry experts predict that the refrigerator sales would be leading the consumer durable market by financial year 2001. The estimated direct cool segment has recorded a growth in April 2000 while the frost-free segment is growing at around 16%. However, in the absence of sustained demand growth, margins have come under severe pressure. Moreover, the industry is witnessing cutthroat competition from other players, particularly the Korean majors. [...]