Global Strategy

Vikram Jethwani
EPGDIB 2009-10
Indian Institute of Foreign Trade (IIFT)
Supply Chain Management
 Introduction
• Alpha Electronics is one of the leading consumer
electronics companies based out of India

• The company is in under the tailspin of

globalisation

• Facing cut-throat competition from global players

• Initial complacency has resulted in a challenging

situation
 A SWOT Analysis
Strengths

• Early mover advantage in India

• Sound understanding of the domestic market, including some

niche areas

• This includes demographics, socio-economic-political

environment, market dynamics, and consumer preferences

• Knowledge of local geographical conditions for setting up

effective distribution networks
 Weaknesses
• Complacency – no attention to improving the levels of
efficiency: cost, marketing, R&D, innovation, so on and so
forth

• Lack of strategic foresightedness – could not see the rise

of globalisation wherein global players would take on
domestic players

• The company did not know where it is heading

 Opportunities
• The company enjoys credibility amongst the customers and
the channel partners in the domestic markets

• Can leverage the nationalist (Swaraj) mood of the Indian

populace

• Once it offers the best quality at prices competitive with

global players, there is no looking back

• Forming up of co-operative groups in lines of Japanese

Keiretsu or South Korean Chaebols may also be considered
 Threats
• Global leaders focusing on:
– R&D, innovation (technology, marketing, et al)
– Efficiency optimisation: JIT, Kanban, etc.
– Quality: Six sigma, ISO (product/ process)
– Overall excellence: Kaizen, Branding/ Advertising, Marketing
Communications

• Sound financial base of competitors

• Global reach

• Economies of scale

• Strategic upperhand
Analogical reference to Videocon
• This Indian company commenced operations in
1987

• The company enjoyed skyrocketing success,

claiming substantial market share

• The scenario soon changed with globalisation

• Sony, Whirlpool, Samsung and LG grabbed the

market from all ends
Analogical reference to Videocon
• Survival of the fittest: the company strategised
for both organic and inorganic growth

• Has diversified its product portfolio with quality

and prices almost at par with its global
counterparts

• It acquired Philips Color TV Plant in 2000

• In 2005, it came up as one of the world's largest

electronics goods company – acquired Thomson
CPT and Electrolux India
Alpha Electronics | Primary Strategy
• Learn from the competitors and compete

• Cut costs and improve quality

• Adopt global good practices

• Focus on R&D, training and productivity

Role of Supply Chain (SC)
• A well-thought and well-executed SC strategy is
imperative for:
– Optimizing costs: both direct and indirect
– Raising channel partner and customer
satisfaction
– Penetrate niche/ virgin markets (tier II/ tier III,
and countryside)
– Enhance overall performance

• SCM should be a part of the company's core

business strategy