Strategies to Crack Well-Guarded Markets

Summary

• Attack the enemy at its weakest points

• Using combination of these strategies

• Picking the right combination

• Can we reconfigure the value chain?

• Can we find a niche?

• Can we leverage our assets and resources?

– Technology, Countries, New Channels etc.

• Creating Barriers for New Entrants Eg. JetBlue Live TV, Patents

Three Basic Strategies

• Leverage existing assets to overcome entry barriers.

– Zenith & AT&T, MVNO Concept (Telecom), Tata-Daewoo

• Reconfiguring the value chain

– Walmart, Dell Computers, Ebay, Amazon etc…

• Creating a niche

– High priced Nokia N-Series, Apple Iphone

• Premium Entertainment Group of ADA-Group.

• Target - All the people who watch movies

• Rent - Rs 299 per month (Security Fees-Rs 400)

• Position with 'Ab aam zindagi ban jaye filmy’

• Media Campaign - TV, Radio & Print, Onlinemedium-15 to 35 yrs

• Competitors - Planet M, Local CD's & DVD'srental stores

• Availability -Ahmedabad, Bangalore,

Chandigarh, Chennai, Delhi NCR, Hyderabad,

Indore, Kolkata, Mumbai and Pune.

• Tie Ups - Shemaroo, StarTV, Zoom, NDTV etc

• Free delivery & pick-up system

• Big screen in local areas.

• Innovative, convenient and cost-effective

entertainment

TVS SUZUKI

• Suzuki wanted to enter in 2 & 3 wheeler segment.

• Tie up with TVS in 1982.

• Success of TVS SUZUKI

1. First Co. to launch 100cc bike

2. Market Share of 22%

3. Turnover around 1630 crores in 1999 - 2000

• Parle Agro launched Frooti in 1984

• Rs300 crore Tetrapak Fruit Juice (TFJ) market

• First in India to come with Tetrapak, thus created a Niche

• Leveraging Strong distribution network as an Asset

• Market leader with 75% share.

• Once termed to be heading towards bankruptcy & a terminal debt trap

• Downsizing, Outsourcing & Product Innovation were the strategies adapted.

• Today its the 2nd largest profit making Organization.

• Combination of leveraging existing assets and reconfiguring value chain

• In the year 1991, out the total revenues, 19% went into pensions of retired employees & 44% in staff wages.

• DOWNSIZING: Did not directly bring the VRS & CRS schemes, instead did not fill the vacancies created after retirement of employees, 16.5lac workforce in 1991 was reduced to 14.1 lac in 2006

•

• PRODUCT INNOVATION: – Double stack container trains on some diesel tracks

which carried 2500 tonnes instead of 1500 t– So, line capacity constraint reduced by half & also 7%

savings on capital cost 25% savings on operating expenses

• RISE IN FREIGHT REVENUE: Due to increasing demand, frieght on all goods was increased by 17%.

• REDN IN PASSENGER FARES: 1st AC 24%, 2nd AC -18%, 3rd AC- 40%, sleeper – 4%

Thank You