Micromax Case Study
Micromax – The Story So Far
Micromax Mobiles is one of the leading mobile companies in the World today. As given by the report of Strategy Analytic’s Global Handset Vendor Market share, Micromax is the 12th largest mobile brand in the World with a global market share of 1% and close to 8% market share in India. In the 2nd quarter of 2014 Micromax was able to defeat even the big giant Samsung in terms of mobile phone shipments to become India’s number 1 mobile vendor. As per the report by an independent market research and consulting firm, CounterPoint Research, Micromax’s handset shipment share was 16.6% while that of Samsung was 14.4%. However, the beginning of Micromax has been a humble one. Micromax was founded in 1991 by Rajesh Agarwal …show more content…
The biggest challenges at the beginning of its journey that Micromax had to face was related to establishing itself as a brand and break away its image as a cheap Chinese mobile manufacturer. With the presence of huge and trusted mobile brands such as Samsung and Apple, it was difficult for Micromax to make its mark. However, Micromax has been able to do it in a very effective manner with careful use of its marketing strategy and product innovation. The company’s success is attributed to its “Out of the Box” thinking. The target audience of Micromax is the youth who want innovative, stylish phones that are …show more content…
The following measures may be taken:
Build instead of Buy
Micromax did not have deep pockets to the likes of Samsung and Apple. Thus, so far they have not been involved in spending huge money on R&D and kept their focus on supply chain and buying the technology to give comparable quality models at lesser prices. They had handsets sourced out of China earlier. However, as they plan to increase their market share which will mean they will need a better supply as well as cheaper manufacturing cost. This mandates them to have a manufacturing plant at home and try to make their own products instead of importing them.
Improve Distribution Network and After Sales Services
Unlike Nokia, Samsung has been able to successfully bring out localization strategies with multiple models to different local segments and a strong distribution and servicing network too. This has been having a negative impact on the sales of Micromax mobiles. It is very important now for Micromax to have a strong base of both their distributors as well as try to make more and better located service centers. It is found that after sales services form a critical factor in the minds of the consumer in deciding whether or not one would g for buying that particular brand or not. With the improvement in the number of service centers it can be expected to reflect on the sales of the handsets as
Micromax Mobiles is one of the leading mobile companies in the World today. As given by the report of Strategy Analytic’s Global Handset Vendor Market share, Micromax is the 12th largest mobile brand in the World with a global market share of 1% and close to 8% market share in India. In the 2nd quarter of 2014 Micromax was able to defeat even the big giant Samsung in terms of mobile phone shipments to become India’s number 1 mobile vendor. As per the report by an independent market research and consulting firm, CounterPoint Research, Micromax’s handset shipment share was 16.6% while that of Samsung was 14.4%. However, the beginning of Micromax has been a humble one. Micromax was founded in 1991 by Rajesh Agarwal …show more content…
The biggest challenges at the beginning of its journey that Micromax had to face was related to establishing itself as a brand and break away its image as a cheap Chinese mobile manufacturer. With the presence of huge and trusted mobile brands such as Samsung and Apple, it was difficult for Micromax to make its mark. However, Micromax has been able to do it in a very effective manner with careful use of its marketing strategy and product innovation. The company’s success is attributed to its “Out of the Box” thinking. The target audience of Micromax is the youth who want innovative, stylish phones that are …show more content…
The following measures may be taken:
Build instead of Buy
Micromax did not have deep pockets to the likes of Samsung and Apple. Thus, so far they have not been involved in spending huge money on R&D and kept their focus on supply chain and buying the technology to give comparable quality models at lesser prices. They had handsets sourced out of China earlier. However, as they plan to increase their market share which will mean they will need a better supply as well as cheaper manufacturing cost. This mandates them to have a manufacturing plant at home and try to make their own products instead of importing them.
Improve Distribution Network and After Sales Services
Unlike Nokia, Samsung has been able to successfully bring out localization strategies with multiple models to different local segments and a strong distribution and servicing network too. This has been having a negative impact on the sales of Micromax mobiles. It is very important now for Micromax to have a strong base of both their distributors as well as try to make more and better located service centers. It is found that after sales services form a critical factor in the minds of the consumer in deciding whether or not one would g for buying that particular brand or not. With the improvement in the number of service centers it can be expected to reflect on the sales of the handsets as