Videocon Industries

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Videocon Industries Limited|
Marketing Term Paper|
Section B Group 8
Roshan Roy 2010103
Samved Banhatti 2010104
Ankur Raj 2010105
Sarat Gopinath 2010106
Sarika Sinha 2010107
Saurabh Prabhudesai 2010108


Company Profile2
SWOT Analysis of Videocon4
Value Chain of Videocon6
Porters Five Forces6
Threat of New Entrants:7
Bargaining power of Consumers:7
Threat of substitutes:7
Competitive rivalry within the consumer durables industry:8
Competitive rivalry to Videocon in the mobile handsets business:8
Competitive rivalry to Videocon in the direct to home television segment.9
The Brand Transition9
Outlook and Scope11

Company Profile
Videocon Industries Limited (VIL) incorporated in 1985, is undoubtedly one of the biggest players in the local consumer electronics segment. The company has a market capitalization of over $2.5 billion and is backed by the Videocon group. Such is the company’s size in the Indian consumer electronics terrain, that it accounts for over 90% of the CMIE (Centre for Monitoring Indian Economy) consumer electronic index. With the passage of time, it has added other services to its portfolio, and is currently involved in oil and gas exploration, manufacturing of glass shells, mobile phones and telecommunications (rendered as part of the Videocon group), in addition to its core business of manufacturing and distributing a range of consumer electronic goods. The company has a strong presence in both the local and global landscape, and is involved in joint venture agreements with 23 other entities. It has also established Research and Development (R&D) centres in China, Aurangabad, Japan and Gurgaon. The company is chaired and managed by Mr. Venugopal Dhoot, well-known in Indian business circles, having amassed a personal net worth of $1.8 billion. Business

The consumer electronics division accounts for nearly 90% of VIL’s total revenue (as at September 2009), while its oil and gas exploration activities serve as a subsidiary business. As part of the consumer electronics division, the company sells colour televisions, LCD (liquid crystal display) televisions, refrigerators, washing machines, microwave ovens, air conditioners, DVD (Digital Video Disc) players, home UPS, batteries and audio systems. It also manufacturers glass shells, electronic tuners and fly back transformers (FBT) for its other products. As far as its oil and gas activities are concerned, the company is currently, only into oil exploration, and intends to foray into oil extraction, oil distribution and gas distribution. Historically, the revenues from the Oil and Gas segment of the firm have moved in tandem with the global crude oil prices. Recently the company has also branched into the telecommunications and mobile phones activities. However the telecommunication services will be rendered through its subsidiary- Videocon Telecommunications Limited. The company is extremely bullish about this segment and plans to invest Rs.14000 crore over the next 3 years for this segment alone. Its mobile phone segment too has done exceedingly well, considering that the company only entered this segment in November 2009. So far, the company has been selling 2.5-3 lakh units a month and with the introduction of nine new handsets in the current month, the company has revised its sales target to 10 lakh units a month. It will however, have to compete with the like of Bharti and Idea for the commissioning of the 3G license. The company has already introduced GSM services in Tamil Nadu and plans to roll out its mobile service activities in 100 towns. Segment

India’s consumer electronics segment is currently valued at $23.3 billion and that is expected to rise to $41.4 billion by 2014, growing at a CAGR of 15.5%. While Videocon is...
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