Silvio Napoli at Schindler India

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„X Evaluate the logic of Silvio Napoli 's strategy for selling standardized elevators in India.
„X What should Silvio do about the order for non-standard elevators?

To understand Silvio Napoli 's strategy for selling standardized elevators in India, let us first take a look at the Indian markets using the CAGE framework:

Culture Economic
- Sensitivity of Indian employees to organizational power and relationships
- Different management styles of Indian managers ¡V "friendly and easygoing"
- Huge curve to adjust to Indian living conditions ¡V housing, school, doctors, grocery shopping, etc.
- Mostly untrustworthy middle-men offering all kinds of services
- Difficult to find office space
- Inability of the market to
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To support this, the logistics, manufacturing and basic installation of the elevators was to be all done in India. But, this meant that the original Swiss policies and procedures used at Schindler 's operations in Europe would need to be transferred over to their manufacturing in India. Based on his research of the Indian market and its culture, Silvio was aware that it would not be an easy task for their Indian manufacturing to learn and incorporate the procedures.

So, Silvio decided to minimize the learning curve burden for their manufacturing operations by picking only two elevator configurations that Schindler India would build:
¡V Model S001 for low-rise buildings ¡V completely outsourced to local suppliers
¡V Model S003P for medium-rise buildings ¡V imported

He also decided that these elevators would be standardized and no customization would be allowed for the Indian market. This was to keep complexity and costs low and to make Schindler an efficient manufacturing operation.

However, there were several problems with this strategy:
¡V Schindler 's corporate structure and management practices were misaligned to the Indian subsidiary 's objectives
¡V The generic offerings S001 and S003P had thin profit margins and they did not fit well within the business plan of offering customized sales and service
¡V Schindler would be

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