Strategy Formulation

Final presentation

Reliability Over Century

GROUP NO.3

Road Map• Introduction• SWOT & PEST Analysis• Core Competency• Five Competitive Forces• Creating Competitive Advantage• Matrix• Conclusion

Introduction• Mehidpurwala Pvt. Ltd. (est. 1885) at

Siyaganj Indore.

• Almost two generation passed away by serving this organization.

• Started by Lt. K. Mehidpurwala

• Son-Mr. BabuBhai Mehidpurwala (76)

• Daughter-in-law: Ms. Sakeena Mehidpurwala (72)

Interview to• Mr. Tanveer Khan

Manager. Services

What is SWOT analysis?

SWOT analysis is a strategic planning method used for 360 degree overview.

Strengths• Strong local known brand.

• The Mehidpurwala business model is unique in its construction and execution.

• Success has been driven from the price architecture offering value to the customer.

Cont’d• A degree of specialist knowledge.

• Provide assistance such as kitchen installations.

Weakness• Gaps in capabilities

• Low morale during off season

• Uncertain cash flow

• Weak MIS

Opportunities• Favorable demographic shifts

• Global influences

• Positive industry trends

• Low technology options availability

Cont’d• Developing niche target market

• Availability of reliable business partner

Threats• Economic downturn

• Demographic shifts

• New competitors e.g. Stellar

• Unexpected shifts in consumer tastes

Cont’d• Demanding new regulations

• New technology implementation

Balanced Score-Card

Financial“Expansion of business

Requires capital”

Learning & Growth

“Our past flaws learn usto serve better”

Vision andStrategy

Internal BusinessProcess

“To satisfy our customers,Which process we are

Following.”

Customer

“To achieve our vision,how should we appear

to our customers?”

What is PEST Analysis?

Consists of internal environment and external environment

Political Factors

Political factors are less imperative.

Economic Factors• Business Cycles

• Monsoon- Rainy season cause fall in sales.

Socio-Cultural Factors• Three different zones of Indore have their shops

• Distribution of Income- People of lower middle class not finding suitable places

• Mobility- accessible

• Purchasing power in Indore is increased

• Consumerism

• Advantage of Technology– In terms of Economies of Scale; more sales at low

prices– Transportation handling

• New Discoveries & Innovations in designs

Technological Factors

Core Competency

Customer Service is our prime motive, which sheds colors on others-Customized Products

Rivalry at present is Big Bazar

Stellar

Buyers bargain from small shops

Tele Shoppe has Rs.5000 of

convertible Sofa

Bargaining power of buyers of suppliers

Five Competitive Forces

Creating Competitive Advantage

• Create schemes for marriage gifts

• From low cost to high cost product can be obtained

• High switching cost to customer

Product Mix• In past they keep only furniture but as

the time proceeds they started selling many decorative goods.

BCG Matrix

Star- KitchenBoxes, wall decoration, pictures and frames,

Cash Cow- Basic Furniture

Dogs- Children's items:

mammals, birds, adjectives

?- Bookcase

Relative Market ShareHigh Low

Mar

ket G

row

th R

ate

Low

H

igh

Ansoff Matrix

MP- Basic Furniture

MD-Corporate Furniture

Di-?

PD- Affordable Kitchens, and other range of

products

ProductCurrent New

Mar

ket

New

C

urre

nt

Conclusion

Thank You-Manish Ramje