Type Joint ventureIndustry WatchesFounded 1987 Founder(s) Ratan Tata Headquarters Bangalore, IndiaArea served 4 continent and 40 countries. India and other countries esp.Middle east, Asia Pacific and Africa
• REPORT:-• Titan Industries is the worlds fifth largest wrist watch manufacturer and Indias leading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys brand names. It is a joint venture between the Tata Group, and the TIDCO. Its product portfolio includes watches, accessories and jewellery, in both contemporary and traditional designs. It exports watches to about 32 countries around the world with manufacturing facilities in Hosur, Dehradun, Goa and manufactures precious jewellery under the Tanishq brand name, making it Indias only national jewellery brand. It is a subsidiary of the Tata Group.
INTRODUCTION• Titan industries limited- a joint venture of The Tamil nadu industrial development corporation and Tata group of industries was setup in 1987 under the leadership of Xerxes desai who was the vice chairman and the managing director of the company. Initially, Titan entered the market as a watch manufacturing company. Then later in 1995, it entered into the manufacturing of precious jewellery segment under the brand name “Tanishq”.
Cont………The company also manufacturers charismatic decorative table clocks in many classical and ethnic styles. Titan watches currently hold 25% of share in Indian watch market. Its manufacturing facility includes a buildup area off 33000 sq.meters that employs around 3700 personnel’s. Its main manufacturing plants are located in Hosur in Tamil nadu with an assembly unit in Dehra Dun in Uttar Pradesh. It has also come up with an electronic circuitry manufacturing division in Goa. The companies headquarter is located in Bangalore.
• Cont…….• In a short period of time, Titan has built an inevitable name for its products, services and corporate practices. In a survey conducted by Economic times, Titan was voted as “India’s most admired brand”. Infact Titan industries were also ranked as India’s leading consumer durable marketing company for seven consecutive years from 1993-1999.
SCANNING Environmental scanning can be defined as ‘thestudy and interpretation of the political, economic,social and technological events and trends which influence a business, an industry or even a total market’.
Modes of scanning:--• There are three modes of scanning the business environment: -• Systematic scanning• Ad – hoc scanning• Processed-form scanning
• Systematic scanning• Information related to markets and customers, changes in legislation, regulations having a direct impact on the organizations activities, government policy etc are collected continuously by taking relevant factors into account.
• Ad-hoc scanning• Conducting special surveys and studies to deal with environmental issues from time to time.
Processed-form scanning• Using information in a processed form available from different sources inside and outside the organization.
POSITIVE/ HELPFUL NEGATIVE/ HARMFUL to achieving the goal to achieving the goal INTERNAL Origin facts/ factors of the Strengths Weaknesses organization Things that are good now, Things that are bad now, maintain them, build on remedy, change or stop them and use as leverage them. EXTERNAL Origin facts/ factors of the Opportunities Threatsenvironment in which the Things that are good for the Things that are bad for the organization operates future, prioritize them, future, put in plans to capture them, build on manage them or counter them and optimize them
• Strengths a) The quality of watches is impressive. b) Innovation is core to its strategy. c) Visual Merchandizing has been Titan’s strength ever since its inception.e) Good retail network by “WORLD OF TITAN” f) Excellent customer service.
• Weaknesses:-- a) Waterproof watches not a part of its kitty. b) Rural India does not form a substantial part of customer base. c) Kids are fascinated with mobile phones rather than watches and incidentally, they show the time.
• Opportunities a) Under-penetrated market for watches as only 35% (approximately) of Indian population possesses watches. b) Watches positioned as a fashion wear rather than just utility products. c) Huge market in the exchange business. d) Introducing water proof watches. e) Rural market may be tapped
• Threats From competitors - a) Japanese- Citizen, Casio b) Chinese watches c) Unorganized sector/ Grey market. d) Mobile phones and wall clocks are a substitute to watches. e) The fashion trend keeps on changing.
PEST analysis:-A PEST analysis is an analysis of the external macro- environment that affects all firms. P.E.S.T. is an acronym for the Political-legal, Economic, Sociocultural, and Technological factors of the external macro environment. The PEST analysis is particularly useful for strategic managers in international business which operate in a number of different national environments.
• Political-legal• Political-legal factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:• political stability• level of freedoms, for example freedom of expression and association• incentives to foreign investors• competition law and policy• employment laws• trade restrictions and tariffs
• Economic• Economic factors affect the purchasing power of potential customers and the firm’s cost of capital. The following are examples of factors in the macro economy:• level of economic development• trends in gross domestic product (GDP)• rate of inflation• wage levels and level of unemployment• strength of currency and convertibility• rates of taxation and exchange
• Sociocultural• Sociocultural factors include the demographic and cultural aspects of the external marcoenvironment. Some Sociocultural factors include:• growth rate of population and age distribution of population language.• main religious and cultural groupings.• educational attainment levels.• level of social cohesion
• Technological• Technological factors can lower barriers to entry, Some Technological factors include:• government spending on R&D• energy availability and costs• transport infrastructure and cost• innovation system, including availability of skilled workforce.• level of technology transfer
CONCLUSION• Titan is growing rapidly and has successful operations. All these can be confirmed from lots of information. Titan has obtained a high reputation in a short period. As a latecomer of watch industry of India, the company surpassed the formers and has got the first position of marketing share. As a watch company, Titan founded a famous jewelry brand successfully. It adopted appropriate marketing strategies which defeated competitors, meanwhile expanded its marketing share on local market.