REPORT ON MICROMAX- ITS INTERNATINALIZATION (Telecommunication Industry)
A Project work
Ambrina Khatoon (MAT 140097) Rethu Kumari. K (MAT.149180)
Prof. RICCABONI MASSIMO Faculty of Economics University of Trento In the Partial Fulfillment of the Requirement for Degree of Masters In International Management (MIM)
Abstract Starting from the presentation of the main key figures describing Micromax Inc in 2010, the case goes back to the history of this player with a particular attention to the vision, mission, values and principles inspiring its growth path to reach its global ambition. Finally, a special focus on the competitive strategy that Micromax uses to outsmart its biggest competitors to kick-start their journey towards global reach.
About the Company Micromax is a telecommunications company based in Gurgaon, Haryana, India. It is a manufacturer of wireless telephone handsets. Micromax has 23 domestic offices across the country and international offices in Hong Kong, USA, Dubai and now in Nepal. Micromax is on a mission to successfully overcome the technological barriers and constantly engender “life enhancing solutions”. The company‘s vision is to develop path-breaking technologies and efficient processes that incubate newer markets, enliven customer aspirations and continue to make Micromax a trusted market leader amongst people. The Micromax ideology stems from its rooted belief in “Innovation” and delivering “nothing short of the best”. History Micromax made its debut in 1991 but it presence has been felt majorly in few previous years. Serious developments and rise was seen in the year of 2008 when the company entered Indian Cell phone handsets market. Company entered market in March 2008 in which it had a market share of meager 0.59% average Micromax Inc. has recently seen a rise in market share. Micromax is the largest Indian domestic mobile handsets company in terms of units shipped during the quarter ended March 31, 2010 and the third largest mobile handset seller in India as at March 31, 2010. On March 31, 2010 the company registered the market share of 6.24% for that quarter, which grew from 0.59% in September, 2008. Micromax became the fastest growing mobile brand in India for the fiscal year 2009-10. Handset sales have grown by 123.48% from 1.15 million units in the quarter ended June 30, 2009 to 2.57
million units in the quarter ended March 31, 2010. Micromax also sells data cards to service providers in India which includes India's leading operators like AirTel and BSNL. Being first and Being best Micromax has a lot of “first” to its credit on their versatile product portfolio and on which they have been the “best” too outsmarting even the top players in mobile market. They were the first to introduce: Lightest touch screen smart phone. Handsets with 30 days battery Backup Handsets with Dual SIM / Dual Standby, Handsets Switching Networks (GSM - CDMA) Inspirational QWERTY Keypad Handsets Operator Branded 3GHandsets OMH CDMA Handsets, etc. Strategy for a Niche With complete advertising and marketing strategy sketched out, the company has an optimistic outlook for the telecom consumer space. Having presence with more than 40,000 stores across the country, the company plans to have an aggressive market incursion to reach out to its customers through 70,000 operational stores in the coming year. One of the aspects that contribute towards the substantial monthly growth of Micromax is its 80% sales in the rural areas. Micromax is building a strong presence in the rural market, where the prominence of both subscribers and operators is rapidly increasing. They are now progressively moving towards establishing its foothold in the competitive urban towns as well. Micromax Informatics Limited created a niche for itself in the telecommunication industry with young enthusiasts as its anchor. Micromax ventured into the telecommunication industry with an...
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