Professional Documents
Culture Documents
Straight re-buy
Organizational capabilities:
Technical support
Financial support
Services
Micro-Segmentation
Purchasing policies (Extended Enterprise Approach):
Centralized procurement
Long term relationships with suppliers
Procurement strategies
Bidding
Market based negotiated prices
Turn-key contracts
Service contracts
Micro-Segmentation
Purchasing Criteria:
Nested Approach to Segmentation
TARGETING
Variables- Size and Growth
Company Name
Net Sales Sales
(Rs. cr)
MRF 13,245.81
13%
Apollo Tyres 8,933.77
JK Tyre & Ind 5,979.12 4% 29%
Ceat 5,701.73
8%
Balkrishna Ind 3,731.49
TVS Srichakra 1,960.42
Goodyear 1,511.84 13%
Govind Rubber 205.36
20%
PTL Enterprises 50.00
13%
Krypton 33.36
Tirupati Tyres 7.26
Modi Rubber 5.15 MRF Tyres Apollo Tyres JK Tyre & Ind Ceat Balkrishna Ind TVS Srichakra Others
Source: www.moneycontrol.com
Basis of Points of Parity
Quality
Safety
Durability
Mileage
Ride comfort
Grip
Cornering and Braking
Points of Difference
High endurance tyres:
Tyre consumers, especially heavy truck and bus owners
MRF tyres to be the toughest in the market.
MRF is amongst the top market leaders and in the heavy commercial vehicles
category
High performance tyres:
Clearleader in Two-wheeler market
Image as a high endurance and high performance tyre
Brand recognition and recall has also played an important role in its
emergence as the market leader
Perceptual Mapping High Price
MRF
Ceat
Apollo
JK
Low High
Performance Performance
TVS
Falcon Balkrishna
Industries
Low Price
GE Matrix
GE-McKinsey nine-box matrix is a strategy tool that offers a
systematic approach for the multi business corporation to prioritize
its investments among its business units
GE-McKinsey is a framework that evaluates business portfolio,
provides further strategic implications
Y Axis- Industry attractiveness
X axis- Strength of a Business Unit
GE McKinsey Matrix Investment Implications
GE Matrix for MRF
GE McKinsey Matrix- MRF
Tyres
Conveyor
Belt
Paints
What have they done to lead in the segments?
First movers advantage