Indian mobile market has gone a wind of changes since the
introduction of Android phones. Nokia which once enjoyed a market share of over
70% has now tanked to 38.2%. Samsung and Apple have seen huge increase in the
market share, but apart from these two global giants, there has been a rise and
rise of a local player: Micromax which currently has the third largest market
share in mobile handset vendors in India and 12th in the world. The
reasons for the rise can be attributed to some smart strategies and focused
target customer segment. They have only targeted low-income groups especially
in the huge rural markets of India with their USP being extensive features
vis-à-vis their competitors and at a lower price.
Let me delve into some of the reasons for their success and
how have they managed to create such a compelling supply chain. First and
foremost, they sourced their handsets from China, ensuring low manufacturing
cost. It tied up with world-class manufacturers such as FoxConn, who had
experience in manufacturing for Apple and Samsung. This ensured that the
quality of the handsets is maintained at the global standard.
Secondly, they adopted Android very early. They realized the
potential of the Android OS and switched completely to it. They were able to deliver
amazing features at low prices and there by attract youth and early android
adopters. I have personally seen and operated the Micromax Canvas Doodle A111.
It was amazing to see all the features today’s Android smartphones have such as
the Google Nexus 5, but comes at a price half as much.
Micromax Canvas
Doodle A111
Thirdly, they have made their distribution channel very
efficient in such a way that whereas a big international brand typically
requires 18 months to launch a product, Micromax can do that in a month or two.
It has achieved this by performing a thorough analysis of the needs of their
customers and identification of their markets. Initially they used to source pre-built
handsets from China, but now they source just the components and assemble them
in India, customizing them to the needs.
Micromax is basically on a path to glory. It has been
challenging the global companies such as Nokia, Motorola, Samsung and others
ever since its inception. I believe Micromax has achieved this huge success
primarily by identification of the right market, thoroughly understanding the needs of those markets and catering to them with world-class products. Here is a link to a
commercial showcasing the features of Micromax Canvas 4:
Question: Can Micromax further refine its supply chain by considering good product design principles as we saw in case of the iPod and Rio music players?
References:
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