XEvaluate the logic of Silvio Napoli's strategy for selling standardized elevators in India. XWhat should Silvio do about the order for non-standard elevators?
To understand Silvio Napoli's strategy for selling standardized elevators in India, let us first take a look at the Indian markets using the CAGE framework:
-Sensitivity of Indian employees to organizational power and relationships -Different management styles of Indian managers ¡V "friendly and easygoing" -Huge curve to adjust to Indian living conditions ¡V housing, school, doctors, grocery shopping, etc. -Mostly untrustworthy middle-men offering all kinds of services -Difficult to find office space
-Inability of the market to deliver on timing ("can't set your watch by Indian trains") -Traditional sales structure has different people to handle sales, technical and installation -Market need for small degree of customization in elevators ¡V custom glass pod elevator, glass wall, etc.-Large income disparities between urban (metros) and rural regions -Expanding tourism; growing demand for top-quality, high-rise office facilities -Elevator market: price-sensitive/value-based, need for excellent after-sales service, brand-sensitive; not as much focus on reliability -Significant long-term differences between European and Indian markets in costs, willingness-to-pay, etc. AdministrativeGeographic
-Excessive paperwork for government regulations and legal proceedings -Huge tariffs/duties on imports of non-core goods such as elevators -Mostly joint-ventures and domestic companies in the elevator market-Complex infrastructure
The case indicates that the Indian elevator market was divided into three segments: ¡V70% Low end: intense competition/local companies
¡V20% Middle end: demanding modern, safe, quality product
¡V10% Top end: 24/7 service top line elevators
Silvio was aware that due to the high import tariffs, their manufacturing costs...