Micromax Strategy Analysis

Micromax Profile

Micromax is an Indian consumer electronic and mobile phone company. Micromax headquarter is situated in Gurgaon, Haryana, India. It was founded by Rahul Sharma, Vikas Jain, Sumit Arora, Rajesh Agarwal. It was established as an IT software company in the year 2000 which worked on embedded and smartphone platforms. Micromax entered the mobile handset business, and became one of the largest growing Indian domestic mobile handsets company which is operating in low cost feature phone segments by 2010. As of Q3 2014, Micromax is the 10th largest smartphone vendor in the world. Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000. They started selling mobile phones in 2008, with a focus on low pricing, in order

It comprises numerous subsidiaries and affiliated businesses and out of most of them united under the Samsung brand, and it is now largest South Korean business empire. Samsung was started in 1938 and founded by Byung-chul as a trading company. Over the next 3 decades, the group diversified into other areas too including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. After Lee's death in 1987, Samsung was separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since 1990s, Samsung has increasingly globalized its activities in electronics, particularly dealing in mobile phones and semiconductors, have become it important source of

1 smartphone company in India right now. Micromax has a market share of 22 per cent if compared to 20 per cent of Samsung company shares in India. This is very important moment for Micromax and also it is a significant moment in the Indian phone and IT industry considering the actual difference between Micromax and Samsung -- one is an Indian home-grown firm which is giving competition to huge multinational company with revenue in billions of dollars in every three month.

So, how did Micromax shoot past Samsung? 7 reasons why it become the number one smartphone company in India, at least according to the Canalys research and numbers.

It targets budget shoppers

India is a market where anything can better in low price. Consumers, especially those who will buy their first smartphone after ditching their feature phone they were using from the last five years, are quiet price conscious. This is the reason why the pull of an established brand, which can work in a European country or in the US doesn't work there but in India. In India, people prefer to buy the phone which is cheap in price and with fine quality, even compromising somewhat on the brand value and Micromax know this philosophy very well. Hence, Micromax mostly sells smartphone in range of Rs 4,000 to Rs 15,000 price brackets. This is the price segment where most of the consumers can buy the phones they can afford, Micromax reaps big