Silvio Napoli at Schindler India case analysis

1. Silvio Napoli at Schindler
India
Strategic Management Case Study
Assigned by- Dr. Tarun Dhingra Presented By-
• Shubham Rishav
• Suyash Raut
• Deepak Kumar
• Dharati Kanani

4. SWOT
Strengths
• Standardization
• Market
potential.
Weaknesses
• Lack of marketing
• Inadequate
knowledge of
country culture
and customers
expectations
• No customization
of products
Opportunities
• Low end sensitive
segment on growth
phase
• High market size for
residential and single
speed escalators
• Legislation issuing laws
on replacement of
manual escdalato4rs
• Schindler world
reputation of its
products
Threats
• Rise in import duties
• High industry rivalry
• Slump in real estate
market growth
• Strong presence of
market leader Otis
with major market
share.

5. Portor’s 5 Forces

8. Current Issues
(as on Nov, 98)
 Orders for nonstandard products (plan for core,
standardized products only)
 Increased costs (due to customs duties and transfers)
 Lack of European plants’ cooperation with local sources
 ZERO installations after 8 months (50 planned for year
1)

10. • What advice would you give to Silvia on his decision
regarding Non-standard glass wall elevator that has been
ordered ????

11. What next….???
Implementation Action Possible Barrier Barrior Avoidance
Create standard design for the
“with glass” elevator
Design can prove to be much more
expensive than standard “non
glass” elevator.
Work with engineers and design
team to ensure that the glass option
can be implemented as a minor
modification.
Create a new sales and marketing
strategy to focus on the two options.
Customers might be dissatisfied
with the lack of customization.
Have the sales force emphasize the
quality and overall value presented
with the standardized options.
Focus on customized maintenance
and service requirements.
Immediately establish local
sources to avoid import costs.
Selection process and establishing
relationships and contractual
agreements with local suppliers could
take time, halting local production
further..
Engage with top management
consulting company and fully
dedicate existing resources to
accelerate local production.
Revise forecast to account for
increased costs due to lack of local
production. Reset expectations for the
short term with a long term recovery
plan.
Can appear to be giving up or look
like initial signs of failure to home
office.
Find areas to cut costs over the long
term to account for increased initial
costs. Try to achieve 5 year financial
model estimates, despite setback.

12. Thank You