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Strategic Management

Group Assignment

1st Slide: Michael Porter’s diamond model (Surat)


2nd Slide: Strategic Faliure, HMT
3rd Slide: Strategic Failure of Pager
4th Slide: Alibaba has no inventory

Group Members:
Ashna Panesar
Tanya Kochhar
Mohammed Bilal Ahmed
-A decline in consumer demand for diamond Porter’s Diamond
jewelry that started in 2014 in Greater China had -India has made rapid strides to become
a ripple effect throughout the diamond industry Model (Surat, “The the world's largest manufacturer and
that lasts till date. exporter of cut and polished diamonds.
Diamond City of India”)
-The slowdown has extended to midstream -Continued economic upturn with
companies as they built up inventories and accelerating GDP and disposable income
reduced purchases of rough diamonds. Firm strategy structure growth rates drives local demand
and rivalry.

Chance

-The Narendra Modi Led


Demand conditions government extends full support
Factor Conditions to industry through reform
processes.

-Policies are in place to safeguard


the interests of SME’s, as well as
those of large enterprise and
-Presence of skilled labour pool. even consumers.
-Rapidly developing robust infrastructure. Related and supporting
-Increasing disposable income of industries Government -In the Union Budget 2017-18, the
consumers. Government of India, offered tax
-Fluctuating demand due to changing cuts for the middle class and
lifestyles and growing attraction for other other sections of society.
luxurious items, Various Countries currency
- All these measures will drive
impacts, etc.
consumption, which will be
favourable to the gems and
-The strategy explores how the city can diversify its jewellery industry.
economy, to bolster against any downturn in diamonds, by
developing policies to support its IT industry, promoting
smaller businesses, and providing skills training.
- Support from the the large retailers/brands.
Strategic Failure of HMT (From the
companies point of view)
• Failure to appreciate the market trends and to create the
infrastructure for manufacturing the quartz watches
• Incurred losses since 1993-94 onward and the Foreign exchange
earnings declined from Rs. 3.43 Cr. In 1995-96 to "Nil" in 1996-97.
STRATEGIC • Similar products were available at competitive and cheaper price
• Increased Manpower cost and running costs
FAILURES • Unable to modernize its plant due to lack of resources, Failure in
adjusting itself with the new Industrial policy of 1991 and Failed to
adhere to delivery schedules
• Bureaucratic and centralized decision making
• Decreasing Sales from 2001-02 to 2010-2011

• Absence of varied design and less emphasis on R&D


MARKETING • Underestimation of quartz watch segment and Poor packaging
STRATEGY
FAILURE • Targeted only the Affluent Middle aged Consumers
Strategic Failure of Pager (From the
Product point of view)
• The Launch of cell phones led pagers to become an
extinction.

• The growth of new age of nearly ubiquitous wireless voice


communications.

• The reason for the decline is as plain as the cell phone in


STRATEGIC your pocket. With the growth in technology, Pagers
become a dying/obsolete technology.
FAILURE
DUE TO • No one wants to send a beep when you can just call
someone on their cell phone.

• The biggest blow came when Motorola, whose beepers


account for more than 80 percent of the market, said that
it would stop making one-way and some two-way pagers
and concentrate on messaging devices for wireless
telephone networks instead.
Strategic Analysis of the statement
“Alibaba has no inventory”
Our Analysis: “Connect your goals and strategic
initiatives to what gets built“
• "No stock" means "no inventory". In that case Alibaba is no different than Microsoft or
Oracle or SAP or any other company whose principal source of revenues is software.

• Yes, it is true that, they don’t keep inventories. However, have excellent supply chain &
logistics system in place. That helps them to fulfill customers order in given time limits.

• It is a platform/market place where suppliers list their products and buyers buy from
suppliers, not Alibaba.

• They are market place operators, taking a percentage of every transaction they facilitate,
even though the goods or services are transferred directly between the supplier and
purchaser.

• Thus, Alibaba provides software that facilitates transactions between people who need to
buy physical products and people who have physical products to sell. In other words, it’s a
company that facilitate digital market places that allow other parties to conduct
transactions of physical good.

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