Abstract

The case discusses the reentry of homegrown smartphone brand Micromax Informatics Limited (Micromax) into the Indian smartphone market with a new range of ‘In’ smartphones launched in November 2020. In an attempt to cash in on the anti-China sentiment triggered by the India-China military clash in Galwan Valley in June 2020 and backed by the Indian government’s Production Linked Incentive (PLI) scheme, Micromax plotted a grand comeback to the Indian smartphone market. Micromax was once India’s leading smartphone manufacturer with a market share of 17% in the second quarter of 2014. However, it lost its coveted position due to intense competition, spurred by an onslaught of new entrants from China, and internal conflicts within the company. The case highlights the problems Micromax faced in 2016 when revenues started to drop as many top executives left the company, and the influx of Chinese brands threatened its market share. Micromax decided to exit the smartphone space in 2018 as it could not compete on the pricing front with the Chinese handset brands. As Micromax embarks on its second innings in the highly competitive Indian smartphone market, it will face certain challenges including intense competition from Chinese rivals, the onset of 5G, reduced customer spending due to COVID-19, and regaining the trust of customers. Whether Micromax can make a strong reentry and reclaim its lost market position remains to be seen.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate the reasons behind Micromax’s earlier success in India
• Understand the problems faced by Micromax in the Indian smartphone market
• Understand the causes of business failure
• Understand Micromax’s reentry into the Indian smartphone segment
• Understand patriotism as a marketing strategy

Keywords

Patriotic Marketing; IN for India; IN Mobiles; Business Failure; Market Re-Entry; Marketing Management; Brand Revival; Micromax