Swot Analysis Of Sylvania

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challenges for the industry to stay competitive.(Wilkinson, J. 2017, October 20). If Havells/Sylvania can create highly differentiated products with investment in research and development they can have an advantage. (Lewis, J. n.d.). Also discussed in our textbook, a company’s competitiveness comes from its core competencies. Included in making the acquisition decision, it is very important that Havells expands on their core competency, which is human resources but also creates new ones.(Hamel, C. P., & Levitt, T. 2015, September 03). We can see this competency in their mission and vision. Havells Mission : ”To achieve our vision through fairness, business ethics, global reach, technological expertise, building long term relationships with …show more content…

This will increase revenue, but also costs. Hypothetical scenario: Havell will acquire Sylvania and with a price increase of 15% for Sylvania’s products this would amount to revenue of 58,950,000 million euros in 2006 with all other costs constant. This number is in comparison to the – 3 million euros Sylvania posted on their 2006 income statement. ((Dhanaraj, C, Ramachandran, K, Dasari, S., n.d.), p.10) Costs would typically go up when there are more products being produced, but if there was a way to cut those costs, this figure could be possible to achieve. If the company sets up manufacturing in China, the corporate taxes would be less and therefore net income would increase. Another scenario would be exploring more opportunities in the area of consumer electrical durables for Havells, which has been the largest growth sector of their business, although not the biggest revenue generating. This has the potential for growth. ((Dhanaraj, C, Ramachandran, K, Dasari, S., n.d., p.11) The acquisition will also create collaboration benefits for both companies. This can produce attractive and competitively priced products. They will be able to manage competitive threats from bigger rivals with new products in the existing market. To do this they will need to invest in innovation in all areas to keep competitive in these industries.(Lewis, J.

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