Discuss about the Strategic Management for Indian Air Conditioning Markets.
Change Dynamics Analysis of Indian Air Conditioning Markets Including the Strategic Opportunities of Blue Star
The presence of the different multinational firms has critically increased throughout the Indian market segments in the field of air conditioning. There are various other factors which have brought up the desired change in the dynamics in the Indian air conditioning market segments. Some of these factors are growth in the rate of per capita income, disposable income as well as the introducing of the newest, latest and efficient air conditions throughout the concerned market segments (Fabozzi and Markowitz, 2011). The different surveys throughout the market segments have evaluated the fact that there are some of the well-known firms such as LG, Samsung, and Voltas which have captured more than 50% of the market share of the Air Conditions in India. It was seen that these products were supposed to be used as the luxury products for the people but now a day’s these devices have become the most crucial and useful appliances for the people concerned. The Blue-star Corporation was engaged in delivering well energy efficient devices as per the suitability of the consumers (Hall, 2014). The development of the eco-friendly air conditions for Blue Star worked well for the firm and evaluated its growth throughout the competitive market segments. The company has near about 135 models in the air conditions and this provides the desired opportunities to the people to select from a wide variety of the products. The penetration size of the Indian Air Conditions was near about 3.75 million and it was rising at a rate of 3% per annum.
The Blue star company has developed its promotional and marketing strategies throughout the concerned market segments and has evaluated its growth rate with an increase of 40% throughout the competitive business markets. There exists a question that whether Blue Star can survive throughout the market segments of India. The fact resides that the company needs to formulate effective strategies in order to enhance the growth rate of the firm within the concerned business market segments (Holloman and Adeyeri, 2012). The primary strategies of Blue Star were to enhance the quality of their respective products as per the suitability of the customers. The increased completion throughout the concerned market segments provided the desired ways for the firm look upon its respective strategies and improves the strategy formulation process as to increase the selling of the products. Reducing the cost structure was one of the primary functions of the firm and it evaluated that the new companies throughout the market segments were selling their respective products by using the idea of reducing the cost prices as well as by increasing the reliability of the products. in order to capture the desired market segments, Blue star joined hands with Handbell which was Taiwan based and this deal revealed the supplying of the comprised supply of the ‘hemetic screw' which critically helped the firm to manufacture its own chillers in order to produce the desired system of the air conditions (Jones and Silverstein, 2009). Starting from the cost structure, quality and maintenance till the reliability of the users were considered by Blue Star for the development of the Air condition devices.
Challenges Faced by Blue Star
There were several challenges faced by the firm such as the potential threat from the well-established brands throughout the concerned market segments (Kahn et al., 2013). Blue Star was one of the growing firms throughout the air condition market segments of India and the firm was getting a tough competition from the other firms like Voltas, LG, and Samsung. the next issues were the collaboration with the suppliers providing the best quality of the raw materials and this was needed in order to enhance the satisfaction level of the customers with the help of the quality of the products offered to them. Availability of the installation of the air Condition systems was one o the more crucial factors hat was well recognized by the firm and same day installation strategy helped to increase the selling of the products of the firm (Morrissey, 2010).
An Evaluation of the Resources and Competences of Blue Star
The company had the effective and the efficient dealers which helped the firm evaluating its expansion of the business practices across the different parts of the country. Moreover, the supply chain management system is supposed to be the crucial part in the development of the business process of Blue star. The desired plan for the firm was to invest throughout the marketing. The effective use of the marketing helped the firm in bringing up the positive results for the organization (Office, 2009). The different advertisement media that was used for the promotion purpose was the use of the hoardings, promotion through the newspapers and the television which effectively finds the right place in the minds of the customers and evaluated the selling of the respective products of the firm (Okumus, et al. 2010). The use of the different tagline for the firm helped in direct challenging the other well-established firm which in result took the attention of the customers to its respective products. The different types of the events, press, as well as the social media, are considered to be the most useful resources in increasing the selling of the products by the proper branding of the organization. The retailers, as well as the stakeholders of the firm, helped in the evaluation of the business process of the firm toward a wider area of the market segments (Ryall, 2010). The dealers played the major role in the distribution process towards the different cities of the countries and it sooner brought the effectiveness in the profitability as well as the productivity of the concerned organization. The company was facing a tough competition from the different well-established firms such as LG, Samsung, and Voltas throughout the competitive market segments of India. The opening of the different outlets of the company throughout the Indian market segments was considered to be most crucial. The distributors as well as the different companies taking the franchise of the firm helped in evaluating the growth strategies of the organization and significantly enhanced the capturing of the entire market segments (Schnerrer, 2014). There were different companies who evaluated their own profits withheld of establishing the wide area networks, throughout the different parts and therefore it was very crucial for blue Star to take the help of the stakeholders as well as the shareholders to expand its business process. There were some of the other companies who were engaged in providing the high level of satisfaction to all its customers by providing the facilities for same day installation of the devices and this proved to be successful for them. The development of the eco-friendly air conditions for Blue Star worked well for the firm and evaluated its growth throughout the competitive market segments. Moreover, with the help of its wide area network the company also used this particular strategy for the same day installation facilities and this increase the satisfaction level of the customers which in turn brought up several positive results for the firm. Company critically tied up with the other companies regarding the distributing of its respective products in different markets segments and therefore the desired effective allocation of the resources provided the suitable to Blue Star in the competitive market segments.
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