Silvio Napoli at Schindler India
Questions:
X Evaluate the logic of Silvio Napoli 's strategy for selling standardized elevators in India.
X What 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:
Culture Economic
- 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.
Administrative Geographic
- 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:
¡V 70% Low end: intense competition/local companies
¡V 20% Middle end: demanding modern, safe, quality product
¡V 10% Top end: 24/7 service top line elevators
Silvio was aware that due to the high import tariffs, their
X Evaluate the logic of Silvio Napoli 's strategy for selling standardized elevators in India.
X What 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:
Culture Economic
- 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.
Administrative Geographic
- 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:
¡V 70% Low end: intense competition/local companies
¡V 20% Middle end: demanding modern, safe, quality product
¡V 10% Top end: 24/7 service top line elevators
Silvio was aware that due to the high import tariffs, their