STRATEGIC BUSINESS MANAGEMENT PRESENTATION

ON SWADES TRACTORS IN SRILANKA

BY-ARSHIYA DUTTA
MADHURIMA CHATTERJEE
Q1.Do a TOWS analysis for Swades Tractors?
INTERNAL
STRENGTHS WEAKNESS
Strengths-Opportunities Weakness-Opportunities

OPPORTUNITIES
 Global presence in 30 countries  Less prospective buyer of tractor in Sri Lanka
 Loyal workers
 Strong distribution network & arrangement with
RAMOS PLC
 Effective dealers
EXTERNAL  Better technology

Strengths-Threats Weakness-Threats

 Competition from Rumini with 50% market share  Limited product range
 Non-equitable distribution of resources
 Non-availability of spare parts in locations
 Lack of branding & after sales support
THREATS
Q2.Do a comparison of the competitors using the competitive profile matrix &
share your insights?
COMPETITIVE PROFILE MATRIX
SWADES RUMINI
Critical Success Weight Score Weighted Score Weight Score Weighted Score
Factor
 Distribution 0.25 4 1 0.25 4 1
network

 Price 0.20 3 0.60 0.20 3 0.60

 Value 0.25 4 1 0.25 3 0.75

 Spare part 0.10 2 0.20 0.10 4 0.40

Availability
(after sales)

 Emotional 0.20 2 0.40 0.20 4 0.80

appeal
(branding)

Total Score 1 3.20 1 3.55

Q3. How did Swades’s main competitor Rumini react to Swades’s nation wide
campaign? Why

Plan to take one of the following action-

• Offer a special price for a limited period

• Run a mass media campaign to emphasize its leadership position

• Increasing stakes for dealer selling Rumini, who were already

showing interest in Swades

Due to the risk of losing dealers & existing customers who would have
been converted
 Q4. Why wasn’t Swades able to sustain the benefits of the mega
campaign in 2006; why did they lose market share in F2008?
They could not sustain the benefits because: They loose market share in FY2008 because:

Due to non- They believed

availability of that performance
spare parts & & delivery of
delay in delivery product was
The senior of it as it had to important more
management be sourced from than other
of RAMOS But within 12 RAMOS. benefits.
The force was
believed that months the
trained in
dealer enquiry
product
network was process was
knowledge & Unlike
important for not Did not have a
enquiry competitors, they
the success of functioning sales force team
processes. did not have
Swades,& not well supporting
the dedicated independent
exclusive
task force. outlets & dealers
dealers
who delivered
network.
the spare parts.
Q5.Why was there a low initial
off take of rotavators (20
rotavators in 8 months)
despite extensive product
promotion efforts?
Though cultivating, aeration and levelling
operations would be done by a single
technology of rotavators, rotavators could not
be made popular to the progressive farmers
because of-
• High initial cost to that of cultivator price
• High repair costs due to advanced use of
technology
• No network of service dealers
Knowing that Rumuni had an emotional
appeal with the farmers, and
considering the relatively poor adoption
rate of rotavators in India, was Angad’s
move to promote rotavators in the Sri
Lanka correct?
Angad’s move to promote rotavators in Sri
Lanka was correct from the point of the
psyche of farmers & Rumini had an
emotional appeal but did not provide benefits
like that of a rotavator, but Swades tractors
had an inefficient distribution of resources &
moreover an rotavator was high-tech product,
so spare parts availability & repairing
infrastructure was must in Sri Lanka
 Q6. What were the pros and cons of Swades tying up with Muscles? What are
the precautionary measures that Swades should have taken whilst promoting
rotavators in Sri Lanka?

PROS:
o Muscles is an Indian rotavator vendor,
which was advantageous in terms of
supply of inventory, resource & spare
parts from India
o Availability of technicians of Muscles to
address technical issues post purchase
o Tired & tested quality of products
CONS:
o Wanted to brand their name along with
RAMOS, which meant switching to other
Indian and International companies if
Muscles became popular

Precautionary Measures
Swades tractors had an inefficient distribution of resources and
moreover as rotavators was a high-tech product, so spare parts
availability and repairing infrastructure was a must in Sri Lanka
Q7. Was the rotavator strategy sufficient to counter the new strategic direction
of Rumuni/ Grimar for the Sri Lankan market? Justify your stand.

ROTAVATOR STRATEGY

 The package of tractor with rotavator was almost the same price as
compared to Rumini’s tractor with cultivator, which obviously gave
more values to farmers especially those using Rumini tractors.
 Real-time experience of rotavator advantages to farmers made them
more competent to taking decisions for purchase.
 Branding focusing on Sri-Lankan families also showed an emotional
appeal towards Swades tractors.
 Set of fast moving parts was provided at free of cost during purchase
which was advantageous for them which Rumini did not provide.
Q8. What were the alternative strategic options available to Swades?

Other strategic options were establishing its own operations in a prospective

market like Sri Lanka where other competitors were also operating.

Continuous communication of fuel-efficient tractors of Swades on India and

focusing on tractor with rotavators in Sri Lanka, according to the end
customer psyche and economic conditions in both the markets. This would
avoid less confusion in minds of customers.