Competitive Strategies Case Studies

Code : COM0264

Year : 2013

Industry : Consumer Electronics

Region : India

Teaching Note:Not Available

Structured Assignment :Not Available

Abstract: Videocon Industries Limited (Videocon), the third largest consumer durables maker in India, wanted to become the largest electronic manufacturer in India. Videocon which was the leading consumer electronics and home appliance manufacturers in the 1990s in India had been steadily losing market share since 2000. In 2008, Kwang Ro Kim (Kim), former managing director of LG who had steered LG to become India's largest consumer durable company in 2004, joined Videocon as the vice-chairman and CEO of the company. Kim chalked out detailed restructuring strategies for Videocon based on the strategies he had implemented at LG. However, Kim quit in 2010 due to a clash with the Videocon management and also because his contract with the company ended. So, even after Kim's exit, Videocon recruited other former LG executives to continue the momentum of reaching the No.1 position. But experts were skeptical about Videocon's ability to succeed in becoming No.1 in the industry and whether it would be able to replicate LG’s success. The case discusses how Videocon attempted to bounce back and how it followed LG's earlier strategies to become leader in the market. The case discusses the opportunities ahead for Videocon as well as the challenges it faces in achieving its target.

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