"The only sustainable competitive advantage is to learn faster than your competition and to be able to act on what you have learned."
~ Jack Welch (Former CEO, GE)
While Samsung has held on to its leadership position in the market, it is noteworthy that Micromax is growing faster. Despite being a homegrown and a new-born mobile phone manufacturer, Micromax has snatched market shares of big multinationals from South Korea and Finland.
In the end of Quarter II, 2014 Samsung stood first with 17% market share, followed by Micromax Informatics Ltd with 14%, and Nokia with 10%.
[Refer to Exhibit 1 for relevant data]. It tells us a tremendous success story of Micromax from its inception just in 2008. Moreover, this has been a cause of big worry …show more content…
The Unique Selling Point of the company has been its highly competitive price with a technology comparable to its competitors. In a price sensitive market such as India, Micromax has taken the lead in competing against the Samsungs, Nokias and the Sonys. It also carved the way for its blooming competitors in the form of Karbonn, Lava and the likes. Thus it is high time to realize the stiff competition to keep the prices low at the same time managing its quality better than the other home-grown …show more content…
In a country obsessed with cricket and Bollywood, this global actor has not made a mark on the revenues of the companies specially in tier 2/3 cities.
Although the move is said to be one targeting the global sales, it has cost Micromax huge amount of money, where as its Indian competitors have resorted to Bollywood for their promotion.
Other Factors:
• Micromax used to have 134 models on sale online, which was more than 122 of Samsung and 131 of Nokia; but with the aggressive strategies being adopted Karbonn has overtook Micromax with the highest number of models available at 160.
• They lacked in innovation and the fact stays, whereas LAVA has become the only Indian company to have its R&D unit in India.
How sustainable is Micromax’s competitive growth?
Micromax’s success story shows a surge in its growth, competing with global brands in a way nobody could have ever imagined, but the recent arrival of number of home-grown companies has impeded the quick growth
~ Jack Welch (Former CEO, GE)
While Samsung has held on to its leadership position in the market, it is noteworthy that Micromax is growing faster. Despite being a homegrown and a new-born mobile phone manufacturer, Micromax has snatched market shares of big multinationals from South Korea and Finland.
In the end of Quarter II, 2014 Samsung stood first with 17% market share, followed by Micromax Informatics Ltd with 14%, and Nokia with 10%.
[Refer to Exhibit 1 for relevant data]. It tells us a tremendous success story of Micromax from its inception just in 2008. Moreover, this has been a cause of big worry …show more content…
The Unique Selling Point of the company has been its highly competitive price with a technology comparable to its competitors. In a price sensitive market such as India, Micromax has taken the lead in competing against the Samsungs, Nokias and the Sonys. It also carved the way for its blooming competitors in the form of Karbonn, Lava and the likes. Thus it is high time to realize the stiff competition to keep the prices low at the same time managing its quality better than the other home-grown …show more content…
In a country obsessed with cricket and Bollywood, this global actor has not made a mark on the revenues of the companies specially in tier 2/3 cities.
Although the move is said to be one targeting the global sales, it has cost Micromax huge amount of money, where as its Indian competitors have resorted to Bollywood for their promotion.
Other Factors:
• Micromax used to have 134 models on sale online, which was more than 122 of Samsung and 131 of Nokia; but with the aggressive strategies being adopted Karbonn has overtook Micromax with the highest number of models available at 160.
• They lacked in innovation and the fact stays, whereas LAVA has become the only Indian company to have its R&D unit in India.
How sustainable is Micromax’s competitive growth?
Micromax’s success story shows a surge in its growth, competing with global brands in a way nobody could have ever imagined, but the recent arrival of number of home-grown companies has impeded the quick growth