Question

Topic: Strategy

Looking Beyond

Posted by Anonymous on 250 Points
Hi,

This is my 2nd visit to site after yesterday and 1st question. Ofcourse the following can also be taken as a case study, and I seek everyone's advices.

I am currently working as a Dept. Head for leading international brand - Enterprise Solutions (Distributor for Nepal) in one of the largest business houses of Nepal. This dept. couldn't be well run by a staff hired from distributor of the same brand in India. The dept. was on loss about to get dissolved. Before his departure, I was appointed as a last try with 2 staffs under me. Now, in a year time this dept. is one of the best performing dept. in entire group, has 9 staffs and increasing, and 5 times turnover increase than that of last year, inspite of worse economic situation in Nepal.

My strategy was simple - 4Ps. I got the product directly from principal, cut the channel (India). With this I had better price and enough margin to excite customers, dealers and annoy competitors. Then Right placement followed by effective promotion.

With a high aim to look beyond, I approached my principal again. This time for a distributorship in India, as I couldn't keep myself aside when the entire world is eyeing for a pie there. To make things better we have our office there too looking after automobile and airlines business, and to make worse, 2 large distributors since last many years handling the brand.

Well, I have been asked for a Buiness Plan by my principal upon receipt of which my proposal will be decided. Now, I am having hiccups and several questions are popping in my head -

(1) Did I aim really too high and looking beyond to another territory (15 times than that of current) is justifiable? Is it a right time?
(2) Will I be in a position to compete with the other two, who has immense market, manpower, technical and customer base? As a matter of fact, the other one used to supply us the product before I joined.
(3) India would be having more numbers of international brands than that of Nepal and many leaders in their segments. With this, I would have to compete not only these two but many others. Will I be in a position to give my brand, a competitive edge?

I have been calculating other threats too, but what i can see is, opportunities, which is tremendous. One strategy which I am counting on is, focusing on dealers and resellers sales than to direct sales, which we have been practicing heavily in Nepal. For this, I want to catch a company dealing with similar products but inferior to mine and has to have a strong network. I want to leverage the company's acquantance and potfolio, and later create mine.

Well, what do you all suggest me on this? Shall I go ahead with this venture or back up? I would greatly appreciate your advices, comments and feedback. Please be adviced, my deadline is August end. Thankyou all in advance.
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RESPONSES

  • Posted on Author
    Hello ggg,

    I liked your idea about 'Pilot project". This is something I was thinking of too. Would you please elaborate it in detail? Let me raise the curtain, this is leading Telecommunication brand and has high competition from NEC, Siemens, Nortel, Avaya, Ericsson and other cheap Indian and Chinese brands. How do you see me go ahead with this project? Also, as said there are already two established distributors handling this Telecom brand in India.

    Hi Puru,

    Good to hear from you and I value your suggestions. Do you mind briefing me on your experience, as you have mentioned that you too have experienced similar situations? Also as said, I am from Nepal and not well accquanted with the Indian territory. What is your advice to me on establishing network in India? I would be very inetrested to talk in detail with you. May be we can discuss offline by email. Mine is [DELETED BY STAFF]

    Also, i expect to hear bunches from all great minds out there.

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