Moser Baer: Growth through Diversification


Moser Baer: Growth through Diversification
Case Code: BSTR283
Case Length: 14 Pages
Period: 1986-2008
Pub Date: 2008
Teaching Note: Not Available
Price: Rs.300
Organization: Moser Baer
Industry: Consumer Electronics
Countries: India
Themes: Diversification
Moser Baer: Growth through Diversification
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Charting a Growth Path

In the late 1990s, CD-Rs were fast replacing floppy disks as the preferred storage medium. Moser Baer was late in recognizing this trend. The company established a factory to manufacture CD-Rs (and DVDs) only in 1999...

The New Forays

In October 2005, Moser Baer announced its plans to enter the high growth business of solar energy and photo-voltaic (PV) technology (Refer Exhibit III to know more about solar energy). It created a subsidiary -Moser Baer Photo Voltaic Ltd. (MBPV) - in order to take up product and market development activities in this area...

Planned or Unplanned Growth?

Critics were of the view that Moser Baer had gone in for too much diversification too fast. However, the senior management at Moser Baer was clear in their vision for the company in terms of the growth paths and strategic investments (Refer Table I for Moser Baer's business strategies)...

Outlook

According to some estimates, the annual global demand for CD-Rs would fall to less than 5 billion units by 2010 and then taper off by 2015. The demand for DVD-Rs, on the other hand, was expected to increase to 8.5 billion units by 2008, from 5.15 billion units in 2006. The demand for Blu-ray Disks was also expected to increase in the coming years. Moser Baer was placed well to take advantage of these demand shifts...

Exhibits

Exhibit I: About Deepak Puri
Exhibit II: Financial Information on Moser Baer Ltd.
Exhibit III: A Brief Note on the Solar Energy Industry
Exhibit IV: Solar Energy Technologies

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