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Micromax Informatics Limited: Growing challenges for India’s Largest Smartphone Maker

Micromax Informatics Limited: Growing challenges for India’s Largest Smartphone Maker
Case Code: BSTR516
Case Length: 7 Pages
Period: 2014 - 2016
Pub Date: 2017
Teaching Note: Available
Price: Rs.300
Organization : Micromax
Industry :Smartphone Industry
Countries : India
Themes: Business Strategy/ Strategic Management
Micromax Informatics Limited: Growing challenges for India’s Largest Smartphone Maker
Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In 2015, Micromax Informatics Limited (Micromax), one of the leading smartphone makers in India, witnessed a slump in its market share and lost its coveted position as India’s leading smartphone manufacturer to rival SAMSUNG (Samsung) . Micromax’s market share in smartphones had reportedly dropped from 22% in Q4 2014 to 14.1% in the corresponding quarter of 2015 (See Exhibit I). Micromax was facing turbulent times as sales had plummeted and several top executives had resigned from their positions. Moreover, the company was struggling to keep up with the booming but highly competitive smartphone market in India. “What the Indian brands did to the global brands two years ago, Chinese phone makers are doing to Indian brands now, and over the next year we see tremendous competition for Micromax and other Indian smartphone makers,” commented Tarun Pathak, analyst at Counterpoint Technology Market Research . The management team of Micromax needed to come up with a new game plan if they wanted to regain the company’s punch back, remarked some analysts...

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