Analyze the critical success factors in building conglomerates


Marketing Management


Analyze the critical success factors in building conglomerates and to understand the role


Case Studies

CASE STUDY (20 Marks)

This case study’s primary objective is to debate and discuss on: Does it make sense for a single business firm from an emerging country like India, to transform itself into a conglomerate when the reverse trend is witnessed in other countries – both developed as well as developing? With the inception of Bharti Telecom (Bharti) in 1985, Sunil Bharti Mittal laid the foundations of an organisation that would emerge as India’s ‘telecom conglomerate giant’. The company made a humble beginning with the manufacture of push button handsets. However, 1992 marked the turn of events for Bharti. The liberalization of the Indian telecom sector in that year unleashed numerous opportunities for domestic and international players to tap the lucrative Indian telecom

market Notwithstanding its small size, Bharti plunged into the bidding war for cellular licenses, successfully capturing the license for providing cellular network service in New Delhi (Delhi). Making a mark with its brand, Airtel, in the Delhi market, Bharti was confident of a triumphant journey. Contradictory to its aspirations, this early victory was followed by a string of downturns. The company lost most of the subsequent cellular bids and found itself in troubled waters. Nevertheless, competitors’ inability to exploit

their winning cellular bids proved a boon to Bharti. The eagerness of these companies to sell their cellular licenses to Bharti brought the company back into limelight. Bnking on the opportunity, the company spread its cellular service to new regions in the country.

From being a handset manufacturer, Bharti transformed itself into a full cellular service provider with a whopping 4.5 million customers in March 2003. However, the company is not content with being only a ‘telecom conglomerate’. In 2008, to gratify its growing aspirations, Bharti declared its intentions of becoming India’s ‘finest conglomerate by 2020’. Equipped with a youthful logo and new brand identity, Bharti is determined to unveil another success story. However, many challenges lie ahead.

Answer the following question.

Q1. Analyze the critical success factors in building conglomerates and to understand the role of brand building in a conglomerate.

Q2. Examine the challenges that Bharti would face in operating as a conglomerate when a reverse trend is being witnessed all across the globe.

CASE STUDY (20 Marks)

Nike, one of the leading brands of athletic footwear, apparel, equipment and accessories is Oregon, US based company. It company’s 50% of the revenue comes from international sales and it registers it presence in more than 160 countries. Nike owns 400 retail outlets which operate domestically as well as internationally. Over the past few years Nike’s subsidiaries have been performing well and as a part of the company’s growth strategy and to maintain its position in the market Nike started concentrating on its subsidiary business in the year 2006. With the acquisition of the Starter the company also envisaged to setup itself in the value retail. The case analyses the impact of Nike’s subsidiary brand on its core brand.

Answer the following question.

Q1. Discuss the segmentation, targeting and positioning strategies of core brands and subsidiary brands.

Q2. Give an overview of the case.

4/1/2017                                               Aeren Foundation                                                  2/2


CASE STUDY (20Marks)

Everyone connected with the industry of bath room fittings can vividly recall the catastrophic failure of a beautiful model of English WC launched by Bharat Sanitary ware a couple of months back. The Italian design was aesthetically superb, occupying less space and using much less quality of water to flush it clean. It was launched with fully coordinated range of bathtub, washbasin geysers, floor & wall tiles and a host of other accessories. A leading MR firm had conducted market researches in a metro and a mini metro town to ascertain consumer preferences & profile. A huge potential was predicted among up market buyers. Competition was virtually nonexistent In spite of all the precautions the product bombed. The manufacturer had to hastily withdraw it incurring heavy loss. The main reason of failure was analyzed as the complicated process of installation in the existing bathrooms. It turned out to be little difficult for the illiterate plumbers to carry our installations. And they conveniently recommended other brands. For a similar product you have been assigned the task of formulating launch strategy.

Answer the following question.

Q1. How many types of pricing strategies do you know? Explain & what should be the pricing strategy for this product?

Q2. If you were the marketing manager, which marketing strategy will you implement? Justify your answer

Q3. Suggest which all groups of people you will interview to find out buyer preferences & needs of channel members. List key information that you would like to obtain from different groups of respondents.

Q4. Discuss and list as per importance the various options available to you for promoting this product.


CASE STUDY (20Marks)

Hyundai is about to launch its dream run in the US through its luxury car ‘Genesis’. For the company, it was indeed a long drive from the low cost segment to the niche luxury car market dashed by ignominies and accolades, and periods of growth and fall. Once reviled for its low quality cars, Hyundai is now hailed as one of the top class carmakers even outclassing Toyota, the world’s largest and premier carmaker, by several quality parameters. In spite of all this, Hyundai still lacks a strong brand image and is snubbed by Americans. For this, it appointed Steve Wilhite as its chief operating officer in 2006 to reinvigorate its brand and smoothen the drive of its ‘Genesis’. Though its rapid growth catapulted it as the world’s sixth largest carmaker, Hyundai risks getting squeezed between its high-tech Japanese rivals and low cost Chinese new entrants.

Answer the following question.

Q1. Analyze the market entry strategies of select automakers

Q2. Discuss the role of branding strategies in a company’s success



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