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Algypug case study

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A detailed case analysis of Algypug Case

A detailed case analysis of Algypug Case

Published in: Business

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  • 1. Algypug Enclosures Case
  • 2. Introduction • Rs.3000 crore industry • Market Leader- Rittal with Rs 300 cr in sales attributes to 55% of the organized sector • Mostly seasoned orders and undifferentiated
  • 3. Industry Overview • Rapid growth in demands • Involvement of consultants • Customer based buying behavior • Buying behavior ranges from precision to general orders
  • 4. Why unorganized? • High Demand • Varying functional and performance requirement • Low capital investment • Maker is low in the value chain
  • 5. Benefits of Standardization • Flexibility – Customers can choose specs – lesson need of customization • Strength and rigidity – Multi fold profiles could be developed – increase load carrying capacity of enclosures – differentiate product • Provide max amount of installation space • Better cable and wire management • Climate control
  • 6. Algypug Enclosures • Employee base consists of mix of Enclotek and new hired employees • 50% of sales in acoustic enclosure segment • Quarterly revenue – 2.75 crs (2010-11) • Bangalore based company (95% business) • Recently started operating in North region • 50% of the company sales are in acoustic enclosure segment
  • 7. Expansion strategy? • Expansion only in South India with base in Bangalore • Pan India sales will be very risky and not easy • Pan India credit and logistics will be troublesome • Reduce dependency on the distributors • Develop own sales force • Relationship development and management
  • 8. The Branding – A Strategy • Segmentation – • Acoustic • Customized Industrial Enclosures • Standardized Industrial Enclosures • Target • • Standardized Industrial Enclosures Positioning • High flexibility product of high quality Core Brand Values 1) Service – Efficient service – Maintain relationship with clients 2) Quality – Multi fold profiles – better load carrying capacity 3) Flexibility
  • 9. Factors for Branding  Flexibility  Strength and Rigidity  Installation Space  Cable and Wire Management  Climate Control
  • 10. Thank You