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Case study onTVS Electronic

By: Sikander Kushwaha

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About TVS Electronic

• TVS Electronics, founded in 1986, started as a IT peripherals manufacturer.

• TVS Electronics designs, manufactures and distributes IT products, dot matrix printers, point of sale terminals, printer supplies, keyboards, mouses, uninterruptible power supplies, and set top boxes. TVS Electronics was established in 1986. TVS Electronics has a strong market presence in India.

• The only Group from Asia, outside Japan, to win the Deming Award for Quality.

• TVS-E is implementing one of the most advanced quality control processes in the country, Six Sigma, to ensure all products and services provide complete customer satisfaction, while meeting world quality standards.

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IT Hardware Industry @ a Glance

• India is emerging as global R & D hub. • Next version of computer hardware going to be design here.• Emerging demand from tier 3 town.• IT hardware manufacturing market is expected to grow from $ 5

billion to $ 25 billion by 2009.• Expected to 35 % growth rate in PC shipments.• Demand for peripheral is also expected to grow @ 25 %.• IT hardware market growing @ over 35 %.• Tax holidays.

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Opportunities and Threats of TVSE

Opportunity Threat

The PC-based POS equipments, whose market is estimated to be Rs 1000 core, by 2009 (source: EVALUE SERVE report).

The other companies in the same field ( HCL, Sahara, Wipro, HP etc.)

Expected to 35 % growth rate in PC shipments.

Entry of new firm in same field due to lucrative profit margine.

IT hardware manufacturing market is expected to grow from $ 5 billion to $ 25 billion by 2009.

Expected tax burden.

Emerging demand from tier 3 town. Lack of transportation infrastructure

Boom in retail sector and demand for automation equipments.

Low awareness about technology changes in Tire- III cities

Growing Disposable income with awareness of PC

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TVSE focus Area To exploit growing market

– Cater to Tier –III city Market– Cater to Organized as well as unorganised

retail sector.– Low cost product with lager volume

production.– Cater to PC shipments.– Look towards global market with domestic

market.

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Strategy options identified by TVS

– Innovate new products according to market need.

– Mange cost effectively in delivering product at the competitive price to the customer

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Strategy choice of TVSE

• A/C to our group TVSE have to adopt the strategy of mixture of both the option because:

TVSE Strength in Distribution is:

– TVS has partner network comprising 3500+ authorized dealer partners and 400+ authorized service partners covering 450+ towns.

– TVS-E has built an enviable market reach for IT products in India.

– TVS have network across the length & breadth of the country, including interior and remote areas, is ably supported by 'Care line’*

* A World-class multi-lingual Call center that provides online customer support for our Indian clients in their own language.

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TVSE Strength in R & D is :

– TVS-E has a 400 strong employee base among which 50% are engineers.

– TVSE May use talented engineer to innovate new product. 

– India emerging as a global R & D hub.– India currently employee more then two lakh

engineers.

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Conclusion

Hence according to our group TVSE have to adopt the mixture of choice rather than one choice. It will make the firm competitive at both the front.

Through R&D firm may provide good quality of product at competitive price. At the same with effective delivery system TVSE will save distribution cost.

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References

• http://www.tvs-e.com/our-advantage.asp

• Management Information System: Text and cases.

• www.moneycontrol.com

• http://company.monsterindia.com/tvsin/

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THANK YOU