Havells Case Study
Autor: goude2017 • October 30, 2018 • 788 Words (4 Pages) • 636 Views
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- Horizontal Diversification in related technologies:
Crabtree was the switch manufacturing firm in stated in Chennai. Havells acquired it 1991. As its product was of similar type and customers were also same type that is mainly households and industries its like a horizontal diversification
Similarly to enter in to the Europe market Havells Acquired dutch giant Sylvania. It was larger than the Havells and its product line consisted of switchgears, cables and wires. So it is also Horizontal type of diversification
- Horizontal Diversification in unrelated Technologies:
Initially main customer of havells were industries. Which created huge demand for the switch gears and cables. Then Havells started to enter in to the households market. As shown earlier their were two products that have huge reach to households in India that is Fan and TV. Havells has already catchup a significant market share in fan’s market. Now under its objective “Deeper into the homes” they acquired Loyd to enter TV and AC market
- Vertical Diversification
As told earlier India is the main importer of LED chips from the China. That is the raw material for the LED lights. To reduce the supplier power and to reduce the raw material cost Havells merged with Exim Hongkong. Havells made it central procurement agency for all product.
- Concentric Diversification
Standard Electric was making switches with ceramics materials Havells acquired it in 1993 and get the opportunity to serve similar customers with similar technologies.
Promtec LED Lights was a leading electronics supplier and solar panel manufacturer. Havells acquired it to leverage lighting market which was moving to LED from CFL. Now at that time technology was new but customers were same so it is like a concentric diversification
Havells main customers were households. Now with products in grooming sector it started to target customers of age 25 to 40 for their specific needs. So now their technology is same but customer is new so we can take as another type of concentric diversification.
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