• Founded in 1991 by Rajesh Agarwal
• 2008 Micromax joined the mobile handset market.
• Micromax is currently the 2nd largest smartphone
company in India.
• Micromax sells around 2.3 million Mobility Devices every
• It had revenue of around Rs 10,000 crore in the year
• To successfully overcome the technological barriers and
constantly engender “life enhancing solutions”.
• To develop path breaking technologies and efficient processes
that incubate newer markets, enliven customer aspirations and
continue to make Micromax a trusted market leader amongst
• Ideology stems from its rooted belief in “ Innovation” and
delivering “nothing short of the best”
• Value Proposition
– The USP of Micromax is offering feature rich smart
phones at very affordable prices.
– Having higher commission for retailers and
• Strategic resources
– Market Knowledge
– Sustainable partnership with Chinese manufacturers;
• Dynamic Process
– Quick Launch of Mobile models
Organizational Capability Profile
• Financial Capability
– Maintaining without any debt and their credit
• Marketing Capability
– Marketing and sales workforce/Market research
• Operations Capability
– Supply chain & Distribution Channel
• Human Resources Capability
– Strong top management
Selling electronic goods like mobile phone,
tablet , LED TV (8% of the top line) etc.
Micromax is set to venture into the services
business eg. areas of education, health and
security, through partnerships
• Rs 190-crore net profit,
6.1 per cent of its
Rs 3,106 crore revenue
• Its profit before tax was
Rs 280 crore, about 9 per
cent of revenue.
• 2014-15 , revenue
Micromax Profit Margin-6.1%
Samsung Profit Margin-13.22%
Apple Profit Margin- 21.42%
• Who it serves?
- Serves both the rural market by providing
products with long battery life and urban market
by providing them with various choices at
• What it provides?
– Tablet computers
– 3G datacards
– LED televisions
• How it makes money?
– Most of its revenue comes from selling mobile phones.
– Micromax has started manufacturing LED Television sets
and tablet computers from April 2014.
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
How it provides its products/Services?
• Through Amazon
retail outlets (1,
-Promise to provide an
-Capitalised on the local
Has limited global presence
-Not preferred by Tech-Savvy
-Customers perceive it as
Low price means low quality
-Introduction of 4G
-Wearable technology and
-Competition from national &
-Dynamic tech environment
Bargaining power of Buyers-Low to
• Diverse customers
• Switching cost-Low
• The increasing number of choices and very
little differentiation of products
• Availability of information aids buyer’s
Threat of new entrants-Medium
• Patents- 250,000 Active Patents.
• Capital requirement- Medium
• Time needed to set-up- Medium to High
• Brand loyalty-Low (But Brand name is
• Already existing competition to gain market
share among the big players.
Bargaining Power of Suppliers-Medium
• Number of suppliers
Chipset – Low(Qualcomm-66% and Mediatek-17% )
Operating System- Android(Open source),iOS,
• Cost of switching- High
• Comparative share in the business-Medium to High
Degree Of Rivalry- Medium
• The Concentration Ratio
Top 4 companies have - 60% share
• Smartphone Market growth-19%
• Competitors constantly at short intervals launch new
variants , Models , Versions and better features.
• Response time of Competitors towards customers
demands and expectation lowering day by day
Threat of Substitutes - LOW
– Communication tech has reached to stagnation
– Wire to Wireless Saturation
– Only disruptive substitutes : Touch Pads, BookPads
with VoIP facilities
– Nascent emergence of Wearable Technology
– No Significant Tech existing to wipe out Mobile
and Smartphone industry any time soon
Corporate Level Strategy
– Expansion in market: from rural to urban and now
– Diversification: Entered into TV segment
– Capital budgeting: they thought of an IPO for $500
million but later on pulled back
No debt in balance sheet
Business level strategy
• Unique Fusion of cost reduction and product
– 30days battery
– Dual sim
– Slimmest phone
• Segmentation according to rural needs.
• Distribution channel and Celebrity endorsements
• Following a Frontal and Flanking attack strategy.
• Human Resources: Recruited high potential top
• R&D : technology follower, setting up new plants.
Outsourcing reduces the cost.
• Corporate level: Expansion into countries like
Indonesia. Can have own retail outlets
• No need for IPO until there is huge need for
• Business Level: Focus on Differentiation
• Functional Level: More Service centers &
software updates to increase the customer