Question
Question2: Applying a suitable framework explain the strategy deployed by Indian TV manufacturers and give your recommendations for their survival FRAMEWORKS: Innovation in Emerging markets
Question2: Applying a suitable framework explain the strategy deployed by Indian TV manufacturers and give your recommendations for their survival
FRAMEWORKS: Innovation in Emerging markets (GVC, LLL models can supplement) WRDZ: 2 5 0
CONTEXT:
In the period 1980-2000, Indian television brands such as BPL, Videocon and Onida reigned supreme. All three TV makers had sizeable infrastructure for consumer electronics in manufacturing, each having plant capacity to do more than a million units. Their long experience and intimate knowledge of consumer preferences in the Indian market contributed to the successful creation of well-known brands. However, the entry of MNCs - LG Electronics, Samsung Electronics, Philips, Panasonic and Sony shrank their market share across large TV segments to low single digits. Now an epic battle is emerging and the price war is brutal. There are about 70 TV brands in India, prices on average have crashed by 40% due to excess capacity of television panels. Wealthy consumers are moving to larger screens. MNCs are deploying resources into large screen sets and have a presence in smaller screens. In large screen TVs, Sony, Samsung and LG together now control more than 70% of the Indian TV markets. Attempting a resurrection, Indian TV makers recognised gaps in the MNC strategy, and offered their TVs online at 40% lower prices than MNCs. While receding resources from large screen sets, this strategy appeared to be working in metropolitan and suburban market nationwide, and especially in the Indian hinterland. Onida has an international presence in Middle East and Africa, Videocon in Asia and Latin America. In 2019, Onida augmented its manufacturing of small television panels at its factory in Mumbai for itself and third parties. The government's focus on 'Make in India' augurs well for Onida with its facilities, manpower and other resources in place. According to Onida, its focus is on providing price-competitive smaller screen TVs with special featuresnot typically found in MNC brandsa differentiator for non-metropolitan and semi-urban areas where MNCs are uncomfortable. Onida assembles about 80 per cent of the total television LED panels in house for cost reduction. The demand for such production was higher after global supply chains got disrupted and an import duty hike by the Government on small screen LED panels worked to the disadvantage of foreign MNCs.
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