The success of an organisation is defined by its core business strategies. The problems of a plummeting market share and internal organisational issues can be tackled using a two-pronged approach.
Product-focussed growth strategy
This strategy aims at developing new, innovative product ranges that cater to the demands of customers in different segments of the mobile phone market. This will help improve the company’s market share.
In order to invest capital in research and development of a product, the company can consider raising funds through an IPO or strategic partnerships. It can also explore mergers and acquisition opportunities for monetary alliances and technology partnerships. To maximise profitability, it is essential to identify and target ideal market segments. Looking at the dynamics of the mobile industry and competition, the following segments seem appropriate:
Premium user segment: This would comprise the urban population, mostly millennials, who appreciate technology and are brand conscious. Micromax products, with a sub-brand in the ‘elite’ category, would have appealing and enticing features, and compete with top-end models in the medium-to-high price range category.
Utility user segment : This would comprise the rural and suburban population, focussing on bottom-of-the-pyramid customers. The product range in this category can be aligned with the Digital India Mission and enable ‘social capital building’.
Micromax can also explore the potential of the tablet market, and take advantage of low tablet penetration in India, particularly in the education domain. This can be done on two levels. One, it can deliver educational content through tablets by tying up with educational institutes. Two, it can procure and format educational content by associating with book publishing houses.
Collaborative learning
With a vision of diversification, getting multidirectional inputs in the decision-making process, and ensuring collaborative growth, the company can form a board comprising leaders from allied industries, senior executives from within the company, and promoters.
Promoters and leaders can be instrumental in creating the ‘vision for change’ and in taking strategic decisions. Senior executives promoted to key positions can be involved in creating as well as implementing business strategies at functional and operational levels.
Strong leadership with visible support from key people will enable the percolation of values that are central to change among all stakeholders. This will also help create a conducive culture where ideas can flow freely both ways — top-down and bottom-up.
Organisation-building strategy
Promoters, on their part, should strive for establishment of two models.
First, a ‘value enhancement model’, where leaders from allied industries bring in their experience and insights and work collaboratively with senior executives. Such exchange of knowledge will build mutual trust and co-operation.
Second, a ‘mentorship model’, which aims at creating a conducive environment for the workforce, where mentors would be instrumental in bringing about the holistic development of the mentees and in creating a culture of faith and fraternity.
Finally, it can also promote ‘green’ policies (like e-waste recycling, and using sustainable materials) to reduce its ecological footprint and raise awareness on ‘natural capital building’.
A genuine focus on the triple bottomline — people, planet and profits — can make Micromax the gen-next company in the mobile industry.
(The winners are pursuing their first year PGDM at SPJIMR, Mumbai)