Individual Case Analysis Havells India

Individual Case Analysis Havells India

Introduction

Due to the government of India introduced several new regulations which are beneficial to the manufacturing industry. The owner of Havells decided to start a small plant for rewireable switches and changeover switches in 1976.

In the 1980s, Havells acquired Towers and Transformers Ltd and expanded the plant and made a joint venture agreement with German company. Havells thought that by imitating many other companies, an initial public offering listing in the stock market can potentially not only gain more reputation but also gain more resources in the market. Later, this proved to be a wise decision,

In the mid-1990s, Havells face the two famous multinational corporations

Entered to India high end market, and the lower price competitor enter the low end market. In this situation, Havells responded by entering into a series of international collaborations and developed the Africa and the Middle East market to find the way to earn profits.

        After the year 2000, Havells began to enter the market of other countries through the acquisition of enterprises. Havells keep searching to find the potential global acquisitions and use their international enterprise division to cost down and increase their advantage. This analysis is analyzing about does Havells need to acquire SLI SYLVANIA LIGHTING.

The SWOT analysis of Havells

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The SWOT analysis of SLI Sylvania Lighting

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The reason why Havells should acquires SLI SYLVANIA LIGHTING:

After the SWOT analysis of Havells, I found that although Havells is the largest manufacturer of MCBs and meters in India and with a strong brand presence and an overall market share of 35 per cent in India. But Havells is facing the 3 way attacks from its competitor:

First of all, other local competitors such as Crompton Greaves and Bajaj Electrical. Assuming that the quality of the products is similar, because all the products are produced in India, so the cost of labor can be almost the same. Under this condition, if Havells’s competitors are willing to run a business at a loss just in order to seize the market share, Havells is not possible to win this battle. And may even lost more market share.

Second of all, other multinational companies are entering into India market. Multinational companies have strong marketing teams with a good reputation and the good product quality. Under the threat of a strong transnational corporations, Havells is a very big crisis. If Havells does not find the good approach to defense, Havells’ market share will grow smaller and smaller.

Third of all, a lot of low price components import from China. Many consumers do not have brand loyalty, when they are making a decision to purchase something, the price is the only consideration. In this situation, the price wars are inevitable.