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    CROMA Final

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    sharajain
    This document provides a strategic analysis of Croma, India's first national retail chain for consumer electronics. It discusses Croma's profile, the attractiveness of the consumer durable market, Croma's core competencies, value chain, SWOT analysis, and strategic recommendations. The key points are that Croma is promoted by Tata Sons and receives sourcing support from Woolworth; it aims to have a pan-India presence of 100 stores by 2010; and strategic recommendations include increasing private label sales and exploring B2B markets.

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    CROMA Final

    Uploaded by

    sharajain
    1K views21 pages
    This document provides a strategic analysis of Croma, India's first national retail chain for consumer electronics. It discusses Croma's profile, the attractiveness of the consumer durable market, Croma's core competencies, value chain, SWOT analysis, and strategic recommendations. The key points are that Croma is promoted by Tata Sons and receives sourcing support from Woolworth; it aims to have a pan-India presence of 100 stores by 2010; and strategic recommendations include increasing private label sales and exploring B2B markets.

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    This document provides a strategic analysis of Croma, India's first national retail chain for consumer electronics. It discusses Croma's profile, the attractiveness of the consumer durable market, Croma's core competencies, value chain, SWOT analysis, and strategic recommendations. The key points are that Croma is promoted by Tata Sons and receives sourcing support from Woolworth; it aims to have a pan-India presence of 100 stores by 2010; and strategic recommendations include increasing private label sales and exploring B2B markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views21 pages

    CROMA Final

    Uploaded by

    sharajain
    This document provides a strategic analysis of Croma, India's first national retail chain for consumer electronics. It discusses Croma's profile, the attractiveness of the consumer durable market, Croma's core competencies, value chain, SWOT analysis, and strategic recommendations. The key points are that Croma is promoted by Tata Sons and receives sourcing support from Woolworth; it aims to have a pan-India presence of 100 stores by 2010; and strategic recommendations include increasing private label sales and exploring B2B markets.

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    Strategic Analysis

    of

    NAME OF GROUP
    MEMBERS:
    B.Prabu (03)
    SharadJain (20)
    Saurabh Mahajan (28)
    Rahul Goyal (46)
    Nidhi Tiwari (55)
    1
    Your ability to learn and change faster
    than your competition is your only
    sustainable competitive advantage
    - Ajit Joshi
    CEO & MD
    Infinity Retail

    2
    INDUSTRY ATTRACTIVENESS
     Consumer Durable market Consumer Growth
    is over Rs.35000 cr. Durable Rate (%)

    08- 09
     Growth rate of 11.5% in Colour 12
     2008 – 2009 Television

     Predicted growth rate 12% Window Air 18.8
    in 2009 – 2010 Conditioners

    Washing 18.1
     The unorganized sector has
    occupied a major share in Machines
    manufacturing and
    supplying VCD/MP3 Refrigerators 13.8
    which has grown by 25%.
    3
    CROMA PROFILE
     Croma is promoted by Infiniti Retail Ltd, a 100%
    subsidiary of Tata Sons

     Croma is India’s first national, large format,
    specialist retail chain for consumer electronics
    and durables

     Woolworth, one of the world’s leading retailers


    provides technical and strategic sourcing
    support

     Croma outlets stock 6,000 products comprising 4


    PERPETUAL MAPPING
    HIGH QUALITY

    VIJAY
    CROMA SALES

    HIGH
    PRICE LOW
    PRICE

    UNORGANISED

    LOW QUALITY
    5
    MERCHANDISE

     Large appliances
     Small appliances
     Computers and accessories
     Music & DVD
     Communication
     Gamming
     Home entertainment
     Imaging

    6
    TARGET CUSTOMERS

    7
    CORE COMPETENCIES
     Access to wide variety of markets

    Pan India presence (8 cities and 50 stores) and
    100 stores by 2010
    Difficult for competitors to imitate
     Technical and strategic sourcing support from
    the world’s leading Australian retailer,
    Woolworth
    Higher merchandise mix in a
    refined way

    Computer accessories, electrical equipment,
    gaming & music 8
    ANSOFF ’ S PRODUCT / MISSION MATRIX
    Existing New
    products products

    CROMA
    CROMA

    Existing 1. Market 3. Product


    markets penetration development

    New 2. Market
    markets development 4. Diversification

    9
    GENERIC STRATEGIES

    10
    SWOT ANALYSIS
     STRENGTH  WEAKNESSES
    Large formats with good Lack of experienced personnel

    ambience(Retail hot spot) Low in service quality


    Tie up with Australian retailer

    Woolsworth
    Strong SCM due to sourcing from

    abroad
    Strong financial support

    Brand equity

     THREATS  OPPORTUNITIES
    New entrants from oraganized retail Pan India presence
    Competition from grey market Innovations in technology

    High labour turnover Increase in customer disposable

     income

    11
    VALUE CHAIN

    12
    PORTER ’ S FIVE FORCE MODEL AND VALUE NET
    SUPPLIERS
    •High Switching Cost
    •High threat to forward
    integration
    •High presence of substitutes
    •Low importance of volume
    SUBSTITUTES
    NEW ENTRANTS
    •High Industry Growth Rate •High buyer propensity
    •Economies of Scale •low Concentration
    •Product Differentiation to substitute
    •High Fixed cost •High switching Cost
    •Capital requirements •Low Switching Cost
    •Switching Cost •Low Product differentiation
    •Cost disadvantages

    INDUSTRY •Low Switching Cost •MALLS


    RIVALRY •High Profits •PRIVATE LABELS
    •Low product differentiation

    BUYERS COMPLEMENTORS
    13
    Tetra Frame work Model:
    Threats from Imitation:

     Easily imitable due to less government


    regulation needed.
     To open a consumer durable store
    amount needed is 1 to 4 crores , so
    anybody can start it and give local
    competition .
     Less product differentiation.

    14
    Countering Threats from Imitation:

     By Getting the important locations for its


    stores as it is one among the few pan
    india level players.
     Making itself present in all important cities
    across india.
     Differentiation is possible as CROMA has its
    own private brands
     The sourcing and technical support of
    woolsworth and IT infra structure from
    TCS has really upgraded.
     Providing technologies that benefit the
    customer through low power
    consumption, and Low service
    requirement,
     After sales services.
    15
    Threats from Substitution:

     Internet virtual stores like ebay.com


     It can face substitution from other formats
    of electronics which deal with only one
    category(speality stores)

    Countering Threats from substitution:


     Croma can launch its own version of E-


    commerce.
     Croma itself can launch its own formats
    which concentrate on a particular
    product category. (Straddeling)

    16
    Threats from Hold-up:

     Once government allows 100% FDI in muti brand


    retail, Woolsworth will launch its own electronics
    stores and croma will have trouble as its sourcing
    of products depends on wholly by woolsworth.
     The manufactures of electronics durables can
    themselves forward integrate to introduce
    exculsive showrooms.

    Countering Threats from Hold-up


     Opening stores in many cities, this will aid in three


    ways. First they will enjoy first mover advantage.
    Second they will get the volume in sales which
    are necessary in wafer thin margin in this
    industry. Finally the numbers stores present will
    limit others stores from opening as all the
    demands are satisfied.
     Launching its own private label.
    17

    Threats from slack:
     Croma has differentiated itself by having a very
    efficient sales force which has good
    knowledge about product. In future it may
    find difficulty in finding human resource. All
    ready Indian retail is has a challenge of
    finding good human resource.
     The attrition rate in retail industry is high.
    Countering Threats from slack:

     Tata group can open colleges which can be one


    place stop for talented human resource. All
    tata group companies can recruit from those
    colleges.
     CROMA can offer incentives which motivates
    the employees and keep them switching from
    one company to another.

    18
    SCOPE
    ØHORIZONTAL SCOPE
    LOGISTICS COMPANY

    ØGEOGRAPHICAL SCOPE
    TARGET TIRE 2 AND TIRE 3 CITIES

    ØOTHER ‘s
    NEW RETAIL FORMATS
    E-RETAILING
    COMBINATION OF DIFFERENT CATEGORIES
    FRANCHISE MODE

    19
    STRATEGIC RECOMMENDATIONS
     Increase merchandise & sale of private
    labels over a period of time
     In house after sales service
     Display of new technological innovations
    (working of blue ray disks)
     Strategic tie-ups with local companies (e.g
    Zapak games etc)
     Explore B 2 B markets (e.g. Tie ups with
    hotels, resorts etc for electronic and
    electrical items)
     Should become a strong national force by
    20
    THANK
    YOU
    21

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