Identification of the Strategic Issue
Graneer Systems needs to determine the attractiveness of the Indian water purification market and determine the best mode of entry. Graneer needs to determine what life cycle the industry is in, how many competitors exist and what are their competitive strategies, what are the forces in the broad environment and how are they going to inhibit or promote market entry. Graneer also needs to determine the best product design for entering this market and a pricing strategy.
Listing of Alternative Courses of Action
1. Joint working arrangement – Graneer would supply key purifier components to an Indian company which would manufacture and market the assembled product. License fees would be on a per-unit…show more content…
Also, the sales staff has limited access to large urban areas. The company introduced another purifier, the PureSip, which is sold in appliance stores. Aquaguard is also technologically limited as it is wall-mounted and requires a specific voltage. o Ion Exchange has 7% of the market with its Zero-B purifying system. The company does not spend on advertising and suffers from lack of brand awareness. However, it has been in the industry for 30 years and has intense R&D investments. Ion Exchange could capture more market share by increasing marketing efforts. o Singer is a US company but a portion of it is owned by Indian investors. Its water purifier, the “Aquarius,” uses components developed by NASA and 100% effective against bacteria, has state-of-the-art design, is portable and requires only water pressure, and can last 4 to 6 years in the typical Indian household. Singer has superior distribution channels compared to its competitors, and is an established brand in India. o Unit sales for all other competitors, and including Singer and Zero-B accounts for around 60,000 units in 2000. Aquaguards and PureSips accounts for the remaining 190,000 units. o At least 100 candle filter companies. o Chatterjee recognized a sales opportunity if “the right product could be sold outside of metropolitan areas.”
Analysis of Each Alternative – Advantages and Disadvantages
• Joint working arrangement