Professional Documents
Culture Documents
MANAGEMENT
Vismay Sood
PRN-09020541053
Systems & Finance
Select any industry of your choice. Identify 3/4 leading competitors in this industry.
Analyze the strategies followed by the lead players & carry out the competition
analysis.
INDIAN WATCH INDUSTRY
India is an under penetrated market for watches. Only 27% of Indians own a
watch.
Total estimated volume as per 2008 is 44 million units and value of Rs 2700
Cr. Vast proportion of Indian market is below Rs 500 by about 68%.
The key players in the market are
1. Titan
2. HMT
3. Timex
TITAN
Titan India Ltd., formerly (Titan watches limited) is a joint venture between
Tata group of companies and Tamil Nadu Industrial Development
Corporation (TIDCO) was incorporated in
1987, and within three years of inception became a market leader. It has its
Head Quarters at Hosur, India and Titan has presence in 4 continent and 32
countries.
Strength:
1. Style:
Titan first introduced the ‘style’ concept in India and projected the watch as
a fashion accessory. Nowadays style is a very much evident factor among
the youth. So, Titan makes the peoples life more glorious by making stylish
wristwatch.
2. Models:
Titan offers the best and the biggest range to customers to choose the
watch of their choice with an affordable price. It offers about 14 different
names with about 1000 plus different varieties with a watch for literally
everyone.
3. Exclusive products:
Today Titan holds the pride for say that its products both within the country
and internationally run in battle position. Its EDGE is the slimmest watch in
the world position.
B. Weaknesses
1. Pricing:
The average price of Titan in mid-price segment is very high than the other
competitors. Average price for Titan is Rs.1100 while the price for HMT is
Rs.550. In the mid-price segment the company is not performing up to the
mark due to the lack of choice of consumers.
2. Market share:
As the average price of Titan wristwatch is far more than the other
competitor, Titan has less market share. The market is more demonstrate by
middle class people and for them Titan is quite costly. Among 75% market
share is in mid-segment and Titan’s market share is between 18-20% which
is far lower than HMT and Timex.
3. Globalized:
The company is not sufficiently globalized in spite of being the market
leader in the Indian soil.
C. Opportunities
1. Seasonality:
At the time of festival, like Diwali Titan promotes Nebula, Bandhan because
there is demand for the products. - Gold watches and pairs are used during
the wedding occasions. The fast track brand is promoted in month of June-
August when schools and colleges re-opens.
2. Gifting concept:
Titan started as a brand which was associated with gifting and relations.
3. Exchanging offer:
The Titan gives the exchange offer for any old watch, of any make, in any
condition functional or otherwise and get a flat discount of 25% on the
purchase of a brand new, stylish and technologically advanced watch from
Titan.
D. Threats
1. Competitor:
Lots of foreign brands are entering in our country with their branded
watches. As the removal of quantitative restrictions on import watches lead
to a threat to Titan.
2. Premium segment:
As in premium segment Titan is getting threats from reputed international
brand such as Espirit, Swatch and Citizen.
3. Mobile:
Nowadays people can get the time and the other feature on mobile phone.
So, the need of wristwatch is in decreasing trend.
SWOT ANALYSIS
A. Strengths
1. HMT is the market leader in the mechanical watches which serves the
lower segment of the society.
2. HMT has a very strong brand image because of the quality and reliability
offered by the brand.
B. Weakness
1. No emphasis on Research and Development.
2. Competitors have successfully been able to innovate continuously thereby
launching newer designs in the market where as HMT has failed to do so.
3. HMT did not have control over their retailers hence they lost control over
prices and trade.
4. No regular trade audits have been carried out by the company to
determine what is going around in the market.
5. It restricted product development to quality development only.
6. Bureaucratic and centralized decision making inhibited HMT’s ability to
respond quickly with respect to market changes.
C. Opportunities
D. Threats
TIMEX WATCHES
Timex watches are in the market since 150 years. It has been ranked as the
no. 1 in U.S.A in 2001. It is the largest selling brand in U.S.A & Canada and is
focused on Quartz based wrist watches in India. Lowest cost watch
manufacturer in the world.
The target market segment for TIMEX watches in India includes the youth,
kids, high end society, fashion, luxury, sports etc. The unique features lie
among the water resistant watches. It has tied up with Bret Lee as the brand
ambassador.
SWOT ANALYSIS
A. Strengths
1. It has a big brand image to support its presence in the Indian watch
Industry.
2. The company has watch for all the different segments for kids, youth,
luxury oriented etc.
3. There are different price band available from hundreds to thousands of
rupees.
4. It has a strong technology to support like data link, perpetual calendar
collection, water resistant watch etc.
B. Weakness
1. It has failed to capitalize on its big brand name and the global recognized
presence.
2. Failed to combat the tough competition from other market players.
3. The company doesn’t have much variety of the products to attract the
customers.
4. The after sell services and the distribution network, retail outlets are few
as compared to competitors.
C. Opportunities
D. Threats
1. The company has to work to occupy more of the market share as there
have been already well established players in the market.
2. The use of mobile phones is being treated as a substitute for the watches
these days.