How Does Hadll Have A Successful Acquisition Of Sylvania
Evaluation of how the problem/situation in the case ties in with the material discussed in the course:
Havell needs a global presence to gain a cost advantage and build its brand premium to compete with large competitors. Sylvania’s products were priced 15% lower than their rivals Philips, Osram, and GE. Sylvania’s brand, which makes high-end products, was diluted because of this. If Havell has a successful acquisition of Sylvania, then they can raise the price of Sylvania’s products to compete with their competitors. This will establish a brand premium.(Rothaermel, F, 2017).
If they can find a way to produce goods at a lower cost by utilization of resources in a more efficient manner than their competitors, they will have a cost leadership. …show more content…
(Gilson, S. n.d). Understanding that traditional company conduct can be difficult to change. Every culture and country has their own traditions, standards of conduct and behaviors that are involved in the workplace.(Sharma, P. G. 2013, October 26). If Havells is to have a successful acquisition of Sylvania, not only do they need to understand the culture already established at Sylvania but if they are to manufacture products in China they also need to understand their working customs and environment and workplace laws. (Sharma, P. G. 2013, October 26). Beyond understanding the new culture there may be layoffs in the restructuring process. This can be done effectively by having a plan, deciding how many employees should be laid off, which employees to layoff and in what sectors that will lead to better productivity. Keeping key players and a set timetable for the layoffs is important for a good outcome.(Peavler, R. 2018, January 03).. It must also keep good relationships with the remaining employees.(Peavler, R. (2018, January 03). In the case of Havells’ acquisition of Sylvania, a gradual approach to downsizing and restructuring seems best as it is a large …show more content…
(Wilkinson, J. (2013, July 24).This may affect Havells/Sylvania if they decide to manufacture in China. China is a low-cost producer of products, but also with low cost there could be low quality. This is not what Havells’ or Sylvania’s strategy is, and they may have to have stricter oversight of these manufacturing plants.(Peavler, R. 2018, January 03). Substitutes may not necessarily be unavailable but are limited in quality, price, and performance. Having quality products at a competitive price is a competitive advantage here.(Rothaermel, F,
Havell needs a global presence to gain a cost advantage and build its brand premium to compete with large competitors. Sylvania’s products were priced 15% lower than their rivals Philips, Osram, and GE. Sylvania’s brand, which makes high-end products, was diluted because of this. If Havell has a successful acquisition of Sylvania, then they can raise the price of Sylvania’s products to compete with their competitors. This will establish a brand premium.(Rothaermel, F, 2017).
If they can find a way to produce goods at a lower cost by utilization of resources in a more efficient manner than their competitors, they will have a cost leadership. …show more content…
(Gilson, S. n.d). Understanding that traditional company conduct can be difficult to change. Every culture and country has their own traditions, standards of conduct and behaviors that are involved in the workplace.(Sharma, P. G. 2013, October 26). If Havells is to have a successful acquisition of Sylvania, not only do they need to understand the culture already established at Sylvania but if they are to manufacture products in China they also need to understand their working customs and environment and workplace laws. (Sharma, P. G. 2013, October 26). Beyond understanding the new culture there may be layoffs in the restructuring process. This can be done effectively by having a plan, deciding how many employees should be laid off, which employees to layoff and in what sectors that will lead to better productivity. Keeping key players and a set timetable for the layoffs is important for a good outcome.(Peavler, R. 2018, January 03).. It must also keep good relationships with the remaining employees.(Peavler, R. (2018, January 03). In the case of Havells’ acquisition of Sylvania, a gradual approach to downsizing and restructuring seems best as it is a large …show more content…
(Wilkinson, J. (2013, July 24).This may affect Havells/Sylvania if they decide to manufacture in China. China is a low-cost producer of products, but also with low cost there could be low quality. This is not what Havells’ or Sylvania’s strategy is, and they may have to have stricter oversight of these manufacturing plants.(Peavler, R. 2018, January 03). Substitutes may not necessarily be unavailable but are limited in quality, price, and performance. Having quality products at a competitive price is a competitive advantage here.(Rothaermel, F,