1. Changes in regulation lifting of quantitative restrictions leading to cheap imports from China and high-end watches from Swiss.
Comments : - Titan came up with strategy to combat both the challenges by - Sourcing from Chinese watch manufacturers with tight quality controls, - leveraging their brands Nebula & Insignia competing with high hand Swiss watches. - Titan also took advantage of low brand image of Chinese watches.
2. Market Segmentation of Watch Markets
1. High End, 2. Mid Segment 3. Low Range
Comments : Titan has clear cut strategy for each segment from inhouse manufacturing to outsourcing from China.
3. Titan loosing shell space at retail level.
Comment: Titan counter it by market penetration into rural areas with Sonata Brand.
4. Capacity of Hosur plant insufficient to meet market demand.
Comment : Titan came up with strategy to counter shortage in capacity and also got benefit in pricing
5. Titan got developed indigineous ERP system.
Comment : Titan`s IT strategy of developing ERP has resulted in reducing response time to market shift from 90 days to 30 days.
6 Titan is split into four divisions.
1. Time products 2. Jewelery 3. Precision Engineering Components 4. EyeWear Division
Comment : It is very difficult to understand synergy amongst various divisions especially jewellery and precision when 80% of revenues and margins coming from jewellery division alone. When we look at vision and mission statements of the company “Growth is the mantra” for titan. Even though the titan has well defined organization structure in place to support various divisions it may be worthwhile to have 3-4 different companies.
7. Titans vision to be a global player.
Comments : Titan has positioned itself inbetween Swiss & Japanese brand in terms of prices. Titan has meet with reasonable success in West Asia but was unable to make significant inroads into the developed...