Strategic Management Technology & InnovationInnovationStrategic Management

Technology & InnovationInnovation

Dante Choque ·Thulasi Devadas · Akhil Hebbar · Rakesh Jha · Guilio Mignogna

Roomba in IndiaRoomba in India

Industrial, Science, Technology

• Advancements in Science and Technology brought by Industrial Revolution in 1800s

• Manufacturing led to pollution, dirt and soot

• Louis Pasteur discovery• Infectious diseases are caused by germs

• Focus shifted to hygiene and cleanliness

Industrial Pollution->Germ Theory-> Technological Innovation!!

Industrial Pollution->Germ Theory-> Technological Innovation!!

Birth of the Vacuum Cleaner

Motor operated ->Wet dry -> Deep cleanser -> hard floor

Carpet Cleaner-> vacuum cleaner

No motor, fan operated

1860

1901, engine operated

1900-2000

After 1901..Suction concept led to vacuum cleaner invention

2002- Meet the Roomba!

• Powerful suction and rotating brush • Schedules time, location for cleaning• Returns automatically to the home base for

charging• Keeps out of certain areas• Directs it from one room to another• Keeps away from unnecessary tangles

A robotic vacuum cleaner- Making a difference in anyone’s life!

Presentation Video

Revolutionary ProductManual Operated Roomba

Low Power Consumption

Storable

Large Dust bag

Cleans under furniture

Scheduler

Automatically recharges

Need for the product

Growing Middle class market• GDP growing at a rate of 7.9% per annum

Rising Inflation - @ 7.5%• Increasing cost of domestic help

Fast city life• Average Indian works > 60 hrs/week

Safety concerns for working parents and senior citizens

• Increasing crimes by people hired for domestic help

Roomba works best on tiled floors• Suits Indian floors

Other Substitutes

Maids- domestic help

Manual Operated vacuum cleaners

• Hardly used in the houses

• Views it as a space consuming, unnecessary product

Use of mops, brushes and brooms

Impacts on the Society

Market dominted by a single company- Eureka forbes with 70% market share•2.5m satisfied customers •Manual operated vacuum cleaners

Increases competition•Other companies compete for market share

Drives Innovation

Impact on the society … contd

Facilitate the lives of families•Resolves health problems•More time spent with the family

Storage Space• Space utilization in the small city appartments

Decreases the dependability on the maids for domestic help

Live the change…

BeforeBefore

AfterAfter

Roomba

Stakeholders and Society

Stakeholder Analysis

Power

Interest in Outcome

Keep SatisfiedSocietyPress

Competition

MonitorMaids

Keep InformedSubstitute products

companies

Manage CloselyCustomersRetailers

Government IP lawsShareholders

Low

High

Low High

Barriers to Business – PESTEL Analysis

Porters Five ForcesPorters Five Forces

Entry Barriers - HIGHProprietary product differencesBrand identity of Local players is highSwitching costs are lowCapital requirementsLimited access to distributionNo Absolute cost advantagesProprietary low-cost product designGovernment policy – High import duties.High degree of retaliation

Buyer Power - HIGHBuyers have high Bargaining LeverageBuyer concentrated in urban areasBuyer volume is lowLow Buyer switching costsMany Substitute products availableHighly Price Sensitivity BuyersLow Brand identityBuyer not very profitable Decision makers are housewives

Rivalry - MEDIUMSlow Industry growthIntermittent overcapacity Low degree of Product differences.Few firms with high Brand identity.Switching costs are relatively low.Diversity of competitors – Both local and International

Supplier Power - MediumLow Differentiation of inputsHigh switching costs Presence of substitute inputLow Supplier concentration Volume is important.

Substitution Threat - HIGHLow priced better substitutesHigh Buyer propensity tosubstitute

IMPLEMENTATIONSTRATEGIES

Target Market

Nuclear Family (double income)• Lives in smaller city apartments

Working mother in the cities• India is a male-dominated society.• Women are more career oriented.

Yuppies (Young Urban professionals)Retired Senior Citizens living alone

ImplementationProduct design changes• Indian floors are not carpeted

Product Distribution• Introduce in Self operating stores and larger retails• Online selling• Direct Marketing

Customer Service• Door to door demonstration• Online help

Implementation

Branding and MARCOM Strategy• Brand endorsements by celebrities• Flyers, door to door campaign• Educating the consumers about the benefits through

in store demonstration• Sponsoring all-women events.• Internet Advertising • Billboards• Television Advertising

QUESTIONS

Characteristics of Indian society