Micromax, India's largest mobile company, began as a software firm in 1999 and entered the mobile market in 2008, focusing primarily on rural segments. Despite significant growth initially, the company faced challenges such as competition from major brands and issues related to product assurance and management practices, leading to a decline in its market presence. To overcome these challenges, Micromax adopted various strategies, including aggressive marketing and partnerships, but still struggled with internal operations and accountability.

1. MICROMAX
Largest Indian Mobile company
Suryakumar T
VIT BS

2. Introduction
• An Indian Consumer Electronic company.
• A Private Limited Company.
• Has started its journey as a software company since 1999, located in
Gurgaon, Haryana, India.
• Entered Indian Mobile Handset business in the year 2008.
• Ranks First position in Indian Market.
• It has focused mainly on Rural Market.

3. Competitors
• Samsung
• Apple
• Nokia
• LG
• Other Chinese Manufacturers

4. Challenges
• Often perceived as a Chinese brand.
• Had severe competition in urban market.
• An image correction was required in the minds of customer.
• A brand strategy needed to fade the memories of Nokia from customers
mind who was the giant in Mobile Handset in India.

5. Strategies
• Sponsoring Indian Cricket Matches - Took the title from major sponsor Hero
Honda and did sponsor a lot of series. With this strategy they reached to millions of
customers.
• Reach to Indian market - They opened outlets and service centers more
aggressively than any other mobile company even beating Nokia.
• Right product strategy - Right product at right time at right price.
• Dosti with Android - They were fully dependent of Open source Android. They
do customization and launch it in the market.
• Introduction of Celebrity
• They support Modi’s cause “Make in India”.

6. Decline in the Growth
• 2010 – 4.5 times revenue growth
• 2011 – Lagged the growth
• Assurance of the products sale is not made, while they concentrated only on
selling the products to the retailers.
• Delay in realizing the market demand

7. Overcoming the decline
• Providing strategic decision
• Supply chain
• Quality and service
• Steam lining channel communication
• Re aligning product portfolio
• Stream lining geographies

8. Growing Pains - Obstacles
• Wining trust :
• Founders are not willing to give their 100% work to some one unknown.
• Autonomy strategy – Major decisions made only by CEO’s not by the major heads.
• Poor acceptance from the colleagues.
• Zero presence of CEO and need of multiple approvals for considering a decision.

9. Growing Pains - Contd
• Enforce accountability:
• No goal settings and no accountability
• Loyalty is more worthier than educational qualification.
• Not much importance to education and their Recruitment made with their close ties.
• Stats – 80% work completed by 20% people.
• Target are not being met properly (60 out of 400 outlets).
• Employees Bypassing the managers, unable to get rid of under performers.

10. Growing Pains - Contd
• Gaps in process and systems
• Deficit in formal processes that would conduct business at large scale.
• Poor process orientation made bad decision making
• Gaps prevented identifying potential problems in supply and distribution.
• Early employees got accustomed to the old systems and process and they are not being
versatile.
• Implementation gap (Slow acceptance).

11. Growing Pains - Contd
• Talent Gap
• Second level of management is not strong. Less qualified people is hired as it is a low-
margin process.
• Didn’t hired highly qualified people instead planned for training the existing ended in
vain.
• Their plans and strategies are old, where they are focus restricted to distributors itself.
And not a customer focus.

12. Growing Pains - Contd
• Founder centric culture
• Founders are involved in the hiring and rewarding the employees.
• Made into bottleneck in organization processes and system.
• Entrepreneurial skills made to run the business from scratch. Mentoring skills also
helped them.
• MBWA – Management by walking around. Conflicts in the decision.
• Bypass the CEO to meet and founders to address any issue or decisions.

13. THANK YOU