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Strategy, strategic management, market and product analysis.
Abstract
Subject area
Strategy, strategic management, market and product analysis.
Study level/applicability
The case is intended for a business strategy course in management. The target participants are MBA students specializing in strategy area as well as middle level and senior level managers from the industry, who come for an executive programme in management science.
Case overview
Year 2009, Mr Pawan Kumar (General Manager, Halonix Limited) was facing a decision-making situation in the organization. Being one of the most experienced and oldest employees of Halonix (incorporated as Phoenix Lamps Ltd in 1991), he had witnessed the tremendous growth of the company since its inception in 1991. The company was having a global brand image in automotive halogen lamps and became a dominant player in compact fluorescent lamp (CFL) market in India by 2007. With the increasing competition and change in market dynamics, the company needed to decide upon the future product portfolio mix and strategy to be adopted to gain the maximum benefit and win over the competition in both the product segments. The automotive halogen product segment was generating higher margins but having relatively slow growth. The CFL product segment was a growing market but was generating low margins due to increasing competition from entry of large number of players.
Expected learning outcomes
The theoretical concepts, which will be explored in this case, involve the following: the importance of industry structure analysis in understanding the basis of competition. The importance of value-chain analysis in strategic planning. The importance of Boston Consulting Group growth-share matrix in evaluating the product portfolio mix having different growth drivers and target segments?
Supplementary materials
Teaching notes.
Details
Keywords
Renuka Kamath and Nilendra Singh Pawar
Through the analysis of the case, the students will be able to: 1. appreciate the dynamics in a multi-channel environment especially in the relatively new ecommerce space in…
Abstract
Learning outcomes
Through the analysis of the case, the students will be able to: 1. appreciate the dynamics in a multi-channel environment especially in the relatively new ecommerce space in India; 2. understand the decision-making process and the impact on various stakeholders in adopting a new ecommerce sales channel; and 3. evaluate financial implications of channel profitability and its implication on the decision.
Case overview/synopsis
Philadelphia Home Products (PHP) India was facing a sales slowdown and was looking at a foray into the e-commerce channel, as an answer for business growth. The decision was not an easy one, as it had implications on existing channel partnerships and the organization. Channel choice decisions had acquired a new dimension with the proliferation of ecommerce platforms and changing online consumer buying habits. It was January 2015 and Nandini Devgan, CEO of PHP India was with her experienced team, who clearly had differing points of view. She needed to put the organization back on a growth trajectory, but how does she balance the various differing views put forth by her team? Was entering the ecommerce channel the best option?
Complexity academic level
This case is designed for use at the postgraduate level in courses, such as sales management, channel management, e-commerce and strategic marketing courses, as well as in executive management programs. The case is relevant from the context of channel management of a Consumer-Packaged Goods company in India, where e-commerce is nascent yet growing. It gives students a practical hands-on decision-making situation, where there are complexities of quantitative and qualitative nature. It triggers a discussion where the chief executive officer (CEO) and her team are facing growth and profitability issues, and have to take a decision on whether or not to adopt the e-commerce channel while managing the existing channels.
Supplementary materials
Teaching note is available for educators only.
Subject code
CSS 8: Marketing.
Details