Project on Micromax

6 June 2016

    With profound sense of gratitude and regard, we express our sincere thanks to our guide and mentor Ms Deepshikha Kalra, for her valuable guidance and the confidence she instilled in us, that helped us in the successful completion of this project report.

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    India’s telecommunication network is the second largest in the world based on the total number of telephone users (both fixed and mobile phone) It has one of the lowest call tariffs in the world enabled by the mega telephone networks and hyper-competition among them. It has the world’s third-largest Internet user-base with over 137 million as of June 2012 Indian telecom industry underwent a high pace of market liberalization and growth since 1990s and now has become the world’s most competitive and one of the fastest growing telecom markets The Industry has grown over twenty times in just ten years, from under 37 million subscribers in the year 2001 to over 846 million subscribers in the year 2011 India has the world’s second-largest mobile phone user base with over 929.37 million users as of May 2012 The total revenue of the Indian telecom sector grew by 7% to INR 283207 crore (US$43 billion) for 2010–11 financial year, while revenues from telecom equipment segment stood at INR117039 crore (US$18 billion)


    Micromax is an Indian consumer electronics company located in Gurgaon, Haryana, India. It is in the business of manufacturing of Mobile Telephones, Tablet Computers, 3G Data cards and LED Televisions. It has 23 offices in India and an international office in Hong Kong.The company has about 656 employees. Micromax started as an IT software company in the year 2000 working on embedded platforms. In 2008, it entered mobile handset business and by 2010 it became one of the largest Indian domestic mobile handsets company operating in low cost feature phone segments. The company has a 22% market share in the Smartphone segment in India. As per IDC for Q2 2013.

    This transformation was steered by four friends who divided responsibilities on functional lines, which haven’t changed since: Rajesh Agarwal, Rahul Sharma,Vikas Jain, and Sumeet Arora. The company’s product portfolio embraces more than 60 models today, ranging from feature rich, dual-SIM phones to QWERTY, touch-enabled smart-feature phones and 3G Android Smartphone’s. They also lay special focus on the products to enhance the customer’s overall experience with the device. Most of their products come with innovative packaging and bundled accessories. The company claims it has many firsts to its credit in the Mobile handset market – including the 30-day battery backup, dual SIM, QWERTY Keypad, Universal Remote Control Mobile Phone etc. Micromax has presence in more than 560 districts through 125,000 retail outlets in India. The company has sales presence spread across Bangladesh, Sri Lanka and Nepal.

    Competitive Rivalry within the Industry
    Competition if healthy would bring huge success but if negative would destroy the whole industry so it should be critically analyzed for better future of the company. Micromax has a very strong position in the Indian mobile industry but few major rivals do exist in the industry like Samsung, Sony, HTC & Etc. Above mentioned companies are fighting continuously to get on to each other and avoid any sort of competition but I is still there. If we talk about marketing and advertising these companies have spent hell of their expenditures for the purpose of effective marketing and advertising and in competition they have always out performed each other. Competition is violent in the mobile industry, and this is a plus point for consumers. Provided that these companies carry on in competing with each other, consumers will persistently enjoy improving product qualities.

    Bargaining Power of Customers
    The bargaining power of customers has always been an important factor in terms of company’s performance so this should be given reasonable value while accessing the company’s position. Customers carry huge quantity of bargaining power concerning their utilization of different Micromax products. Although a lot of substitute products and competitors Micromax customers have very influential choices but still the quality and pricing that has been maintained by Micromax has made it very successful among the users. It is very important to understand the power of the customers and also their needs so that they can be better satisfied. This is what Micromax always cares about and that is reflected in Micromax’s strategies that are being used wile creation of new products as society has in progress of becoming more tech savvy .

    Bargaining Power of Suppliers
    Bargaining power of suppliers is very important factor to be considered in any industry as they are the main strength of the company. Micromax is now known for strong relations with the suppliers around the globe due to its immense buying power and also because of the fact that in such products quality is always important. Micromax as always focused over strong and sturdy business relations to make the ongoing quality stronger. Additionally, Micromax also presents helpful guidance to its suppliers on how to work more proficiently to decrease redundant expenses. And thus it cares of its suppliers which in return pays them off in the form of quality products.

    Threat of Substitute Goods
    Substitutes have always been in line whenever we talk about products market, every kind of product has a substitute present which leads it to the heights of competition when taken seriously. As the product is very common and frequently used product so the threat of substitutes is very high here. Like if we take the example of Airtel Mobile Network Connection the substitutes of this is Vodafone Services that serve as a competition. So Micromax has to innovate its products tremendously to stay in the market and to work efficiently for removing the threat of substitutes. We can take the example of recent innovation which are very effective and efficient factor that has been introduced in all products of Micromax. Such initiatives would make it easier for Micromax to go beyond the substitutes

    Threat of New Entrants
    If the market is attractive the new entrants would always be a threat for the company but if the market has been restricted to a limited resource and it has very few areas of improvement so it becomes difficult for new entrants to get into the market and hence monopolies exist. Although Micromax has accomplished a strong name in the Indian mobiles market but as the Mobile industry is very huge and viable; so there are a lot of companies who already entered in this market like ( Karbonn, Gionee, Lava, Xolo, Lenovo, Etc) and somehow achieved a place in the market even though they could not cross Micromax in terms of market share.

    Every year number of companies attempt to enter the market and strive for their share of profit and productivity in the market but very few survive. Micromax has been the leader of market for almost 2 years so now it has become a very big challenge for the new entrants to not only work over their quality but they also have to cut the share of Micromax to survive which is quite difficult. Fundamentally, Micromax is persistently on the board, and therefore the threat of new entrants is temperate.

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