AHMEDABAD INDIAN INSTITUTE OF MANAGEMENT Cool King curb: To be or not to be in windowpane Air-conditioner line of merchandise? The window air-conditioner business provides a mythic business hazard for us to register uplifted tax revenue growth and intensify profitability. However, this immature-sprung(prenominal) business should be conducted on an whole tender set of rules framed by competition and engineering evolution. We demand to fundamentally change and reorganise ourselves to effectively vie in this new (product oriented) business. The implications of such a change to our exist portfolio of businesses should be deliberately evaluated before we decide to venture on this new business opportunity. It is precisely this trade off demand in our approach to business combined with a careful judgment of opportunities and associated risks that would determine our presence or absence in the new business opportunity. Chairman and CEO, Cool King special Product, Industry Characteristics, and film Drivers Market Size: The Indian air-conditioner merchandise in 2002 was estimated to be Rs. 3,300 crore growing at 20-25 % annually. Of these, central air-conditioner, including package and ducted air-conditioner systems, was around Rs.
1,300 crore and the window and split air-conditioners commercialize was around Rs.2,000 crore. Players: The labor consisted of three kinds of companies: MNCs, Indian companies and unit assemblers. The MNCs included Carrier, Hitachi (with Amtrex) and Fedder Llyod. The leading Indian companies were Voltas, Amtrex , Shriram, Godrej, Blue supporter and Video! con. While the MNCs sold on scar and premium image, the Indian companies sold on established credibility. The assemblers (usually regional players) competed on footing with an acceptable quality. The assemblers accounted for more than 50% market share. Tax twist: Air-conditioner (AC) was considered a luxury product, and therefore subjected to high duty structure. The esteem of excise...If you want to get a affluent essay, order it on our website: OrderCustomPaper.com
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