Case Study - Coolex (Strategic Management)

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Assignment – The case
of Strategy Planning
Submitted by:
Navan Sodhi
PGDM – HR

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Q.1 Address the main issue of the company along with facts of the company?
Ans. The main issues of the company were as follows-
 14 years ago, Coolex had 55 % share of the local central air-conditioning business.
Today, it has 40 % shares.
 Closest competitor, Airtemp, accounting for a 15 % share and growing.
 Even Coolex customers are becoming, increasingly unpredictable.
 Coolex was using traditional approach of management rather than using core
competency approach.
 The traditional process followed for developing a strategy and the problem being
encountered by the management.
 Management is not clear as if they are having right kind of approachfor developing
the strategy or they need to change present practice.
Q.2 How should Coolexevolve its strategy?Shoulditcontinue with the conventional
approach, with its focus on the external environment, in the face of potential
competition?
Ans. Strategies evolved by Coolex-
 The case study discusses the conventional approach that Coolex follows which sees
only the competition in external environment.
 In my views Coolex should not continue with the conventional approachand should
evolve by not trying to find the most advantageous strategic position in relation to
the environment and competitors. Instead, move towards building and exploiting
own resources.
 They should base their strategy on core competency by being proactive rather than
reactive.
Q.3 Is it feasible to link strategy-planning at Coolex to its core competencies? Has
Coolex got a grip on its core competencies at all?
Ans. Yes, it is feasible reason being -
 If you adopt the industry-structure approach to quality, strategy-planning process
becomes reactive. You look at your competitors, suppliers, or customers and react
which can work as long as the going is good.
 If you adopt the competence-based approach, Coolex will look within itself, find
your core strengths, and understand how they can leverage them to gain a
competitive edge. It will help them to realize which strategy is good for Coolex
without following every move that your competitors make.
 Coolex has set the right course but they are far from realizing their right core
competency.
Q.4 Is there an alternative to the traditional approach to strategy-formulation?

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Ans. The alternative is the proactive approach i.e. base your strategy on your core
competencies instead of the environment and the industry.
Q.5 What should be the road map for Jagmohan the CEO and its Team?
Ans. Road map for Coolex’s team and Mr. Jagmohan the CEO –
 Focus on a specific product segment: central air conditioning, unitary air-
conditioners, or ducting systems
 Look at a particular customer segment: industrial or domestic customers.
 Adopt core-competency approach, choosing to cater to the needs of customers in
profitable segments in both markets.