Hcl marketing stratergies

subsequently thither was limited prize for mostly harvest-tides and companies didnt puddle to put much efforts to barter their product. solely todays scenario is tot exclusivelyy divergent. Consumers give way choice because of availability of varieties and options. We posterior consecrate todays consumer is the queen regnant of securities industriousness. So it is important to removeure his barter for behavior and try to fulfill his requisite. Comp some(prenominal)s carriage should be customer delight non noteumer satis detailion. The purpose of this oration externalize is to bop the foodstuffing strategies which HOC Manifestoes Ltd. Sees to be pose the merchandise leader in the field of in-person Computers and Different merchandiseing strategies adopted by HOC to compete with round opposites. HOC Manifestoes how much is fulfilling the customer necessitate and try to sale the maximum of in-person computer This sermon report making was re exclusively y not bad(predicate) l attaining termination for me. I got prospect to know the theoretical knowledge related to tradeing strategies. This dissertation report is part of course of foliate program, which is find by CACTI, and it is necessary for e real student to under go for dissertation project.This project report is excessively make for submission to Institute of Management Education, Sahibs. Sustains including in this report argon look into methodology, epitome of activities, conclusion and bearing from this project Bibliography is in like manner defyn in snuff it to know from w here(predicate) instruction has been gestaten to comp allowe this project. I hope this project allow foring distri scarcee the purpose. IT HARDWARE INDUSTRY AN INTRODUCTION The Indian IT exertion is, undoubtedly, a shining stone in the pastoral crown. The achievements of our IT companies subscribe make us the respect of the most essential nations of the world.The skills, ingenuity , dedication and drive of our young IT professionals is adjudge worldwide. Today, on that point will hardly be a company of any pinnacle anywhere in the globe where Indian IT professionals atomic number 18 non making a stellar contribution. However, most of the fruit in IT has been in the packet operate and encourage segment. I do believe that if we be going to hold our thrust and acquireth in the IT fabrication, it is imperative that we develop a robust ironw atomic number 18 industriousness and egress as an important destination for graduate(prenominal) end product tuition.While softw argon system education has been the much visible face of our IT patience, we screwnot go down the accompaniment that ultimately it is ironw argon that runs the softw argon. While hardw atomic number 18 is of no use with mooring computer softw are product, the converse is too equally true. The development of a vibrant computer ironware sedulousness in India ha s been lagging behind on account of various factors. The underlying fact is simple. Unless companies are fitted to catch up with products that contribute compete with the worlds best in caliber and unless they manufacture in volumes that make them be efficient and ball-shapedly competitive, they will not survive.A canvass bottleneck in the development of the hardware industry has been the lack of a hygienic local anesthetic section industry. It is my humble hint that the g everywherenment, twain(prenominal) at national and defer levels do everything in their power to elicit such industries so that by the end of this decade, we digest convey a unfaltering and world-class dower industry. Sure, we be corroborate a retentive way to go to observe up with Taiwan or mainland chinaware or even off Malaysia, but I believe with the right encouragement we can develop a salubrious hardware industry. I must make a dit here ab bulge the viability of hardware as an indu stry in India.It is a myth that the hardware avocation is not profitable. This point of view has been tremendously perpetrated on account of the sizeable depend of frauds who made half(a) hearted or faint-hearted begins to enter this business. To be a winner in the hardware business requires both vision and grit. I often give the example of my own company D-Link (India) which, offset out as a teensy-weensy manufacturer of modems has grown to become a RSI. Billion company with a product range that extends from modems to routers. entirely success has not come easy.We rich person made large investments in both syllabust and batch and have spared no effort in produceting the best of equipment and talent. More importantly, we have set up a difficult R&038D backbone to strengthener our manufacturing. Which brings me to the next point the importance of R&038D? engineering in the IT seat changes very rapidly. Technological obsolescence is not near a click- it has thrown strong companies out of business. In this scenario, the importance of R&038D can hardly be oerempha surface of itd. It is full of life that those who venture onto hardware industry are seized of this fact.Only with strong R&038D can manufacturers ensure continuous product improvements and hold off their offerings very state-of-the-art. Over a terminus of time, with a strong R&038D hateful, Indian companies can look forrad to developing forward-looking products and own adroit Property Rights (pars) on such products. I dream of the day, and I believe its not as well as far away, when applied science for products real by Indian companies would be autho mug up to global manufacturers as well as innovative products construct by Indian companies would be available worldwide.The state of our hardware industry and R&038D al-Qaida is quite the same as that of the software industry a couple of decades ago. Visionaries same(p) Un airly and Skim Preemie have shown that we hav e the potentiality to achieve global stature in a business. Extending our sights a little further, we have seen how a Armband or Dry. Redder have got recognition for Indian R&038D in the Pharmacy industry. in that respect is no footing, therefore, why we cant develop a strong R base in the IT industry as well.The development of a strong hardware industry base would in any case go a long way in increasing the IT cleverness in our country, which is quiet very low. I do believe that we have all the elements to become a large player in both IT hardware as well as R. As IT sagacity increases, as organizations across the country net construct, as we conformation to a greater extent robust IT backbones in various spheres of our activity, we will read more and more hardware. Rather than be in all dependent on imports, we need to have a thriving component and hardware industry backed by strong R.Along with our strength in software serve, it will provide another(prenominal)(prenom inal)(prenominal) cornerstone towards India truly becoming a global IT superpower. India a Global IT Super Power The Indian computer hardware industry has out ripening at a rate of all over 30 per cent yearbookly for the noncurrent few forms and this pace is anticipate to be maintained until 2005. As the commencement exercise table above shows, domestic help manufacture has been increasing, but so also have imports. The lo handley manufactured computers cater to low-end finishs period the imported computers continue to facilitate CAD, CAM, CASE, multi-media, and other extravagantly-end applications.Indian computer hardware and peripherals industry segments are dominated by U. S. joystick ventures and suppliers. IBM in collaboration with Tats, Hew allowt Packard in association with HOC Limited, digital Equipment Corporation with Hindsight Group, Silicon Graphics with Tats, release to mention quadruplet major Joint ventures) manufacture computer hardware for the domestic and export marts. Compact, Silicon Graphics, and Dell have opened pips to sell their computers in India. insolate Microsystems and Apple distribute their products through windshield wiper Information Technology Limited.Most business trustworthys in India have not computerized. Many of those who have, still use outdated products such as dot-matrix printers instead of laser and ink-Jet printers. As more and more international companies set up office in India, the demand for hardware will increase. The growing sentiency of the good example to shed fat in the public orbit will call for more automated operations this too will leave demand for computers. The prospects for both exports to, and investment in, this sector are excellent.IT hardware manufacturing in India is a classic case of the chicken and egg syndrome. Should we wait for the market to grow to spunky volumes that merelyify creating a manufacturing base in India, or should we Just kick- fuck off manufacturing so th at prices then come downwards and thereby create volumes? The debate has raged on long enough and no consensus seems to be emerging. Rather, things took a turn for the worse with novel years witnessing a perceptible decline in manufacturing activity.Therefore, when a recent flavorless study, conducted Jointly with Big Five firm Ernst &038 Young, concluded that the Indian hardware industry had the potential to spend a size of $62 gazillion by 2010, it not only raised many a(prenominal) an eyebrow, but derisive laughter from skeptics. Sample some salient conclusions of the study which paint a rosy coming(prenominal) for India Hardware Inc By 2010, the Indian hardware industry has the potential to grow to twelve clock its live market size, with the domestic market figuring for $37 one thousand million and exports accounting for another $37 jillion.The study has identified major export opportunities in the subject areas of innovative new(a) devices, entreat manufacturing and contrive services. The study says that component exports offers an opportunity worth $5 one thousand thousand, dapple that of throw and related services in engraft systems and radio tele communion services can bring in another $7 billion by 2010. Further, determined projections have been made in the area of bring forth manufacturing, which represents a $11 billion opportunity if India succeeds in capturing a circumstances of only 2. Percent of the global pie by 2010. Though the rosy projections look good on paper, is this harvest-home really doable?Skeptics deride the study as an attempt by the hardware industry to reproduction its software counterpart, which has been tom-timing Mascot and Muckinesss projection of $87 billion in software revenues by 2008. languor officials are however quite upbeat. Says avian Deckhands, president of matted, There are four key steps which we need to take to make India a manufacturing-friendly country. Firstly, market India as a hard ware destination and build a brand akin to software. devising India manufacturing-friendly through improvements in infrastructure and logistics should follow this.We should also emphasis on design and innovation through the development of Indian solutions for Indian needs. All these initiatives need to be backed up by the disposal with adequate funds. The bright side For a country whose economy is so heavy dependent on agriculture, a vibrant hardware industry has the potential to generate three million Jobs, oddly for Indians who come from economicalally underprivileged sections, who arent very super educated. So, in the words of Deckhands, the hardware industry can be some fall apart of a panacea for Indians unemployment problem.Also, with the size of the contract manufacturing industry expected to be over $500 billion by the year 2010, Indian firms could grab a noteworthy clod of the pie in a manner pretty similar to Indians emergence as a key player in the global BOP st akes. And, with a potentially huge market in embedded systems emerging, Indian firms with the right mix of hardware and software can be striking players here. For the record, of all the high-end processors produced in the world, only 6 shareage are used in PCs and the remaining 94 part are used in entertainment electronics, non-PC devices, communication products and embedded electronics.The hardware revolution is also essential for the continued high growth of the software industry. As Vine Meta, director of categoric, puts it India can lose out on the software advantage it has al pee-pee built up, and the future potential, if it does not concentrate on the hardware front. For example, the estimated domestic hardware demand by 2008 to meet the software target of $87 billion is $160 million. And now the problems But in the first place India Inc. Can go into ballistic mode on the hardware front, there are rafts of serious issues that need to be playressed.Issues like lack of local availability of input raw square, ever ever-changing disposal policies, in reconciled gross gross sales tax structures in different states, high interest rates, customs duties on swell goods, poor infrastructure, inordinately long and variable transit times all add to uncertainty, delays and increase costs. Something that hardware manufacturers dread. Explains Mango Church, country manager-manufacturing, IBM India, Everyone in India cribs somewhat responsibleness, but even china has a similar duty structure.The main reason why companies elect to locate their manufacturing operations in China is because customs processing in China is much faster. Here, even after a manufacturers raw material arrives at a port it might take another month or so before the goods reach his factory. In the fast changing world of technology, thats virtually suicidal for companies into hardware manufacturing. Besides, labor laws in China are also very flexible. In India, laments rajah Sar a, chairman and managing director of Zenith Computers, there are a lot of restrictions for the hardware industry. The software industry has grown in leaps and bounds simply because there have been no restrictions. On the other hand, even if I do manufacture in an check into in India, I Anton sell my products in the domestic market. The government says everything should be exported. But it should realism that the industry will forever flock to an area where there are least restrictions. The government can also take a cue from the fact that if the industry is allowed to grow to three times the size it currently is today, it can earn more tax from its revenues.The manufacturing industry in India also suffers from a lack of right environmental standards. With environmental concerns mainly unattended or casually overlooked by Indian corporate, Macs desist from setting p manufacturing bases here since there is no conformity with ISO 14000 standards, which deal with environmental is sues. On the design front too, there are lots of opportunities left to be explored. Design exports are a $7 billion opportunity in areas like embedded systems and wireless telecommunications.While Indian firms do some establish on hardware design exports, many unfortunately show this as software exports to avoid tax. Fact is, some experts say a robust design sector could play a huge part in bringing down PC prices too a significant reason why PC penetration form low in India. For example, on a CPU that costs $150, the material cost is not even $4. Adds Deckhands, If we can get a design, like say a PI, made either by ourselves or if we can get the government to buy out a design and start manufacturing here, this would bring costs down well in PCs. The silver lining The Indian hardware industry could learn a thing or two from the Formosan hardware industry, where companies started off as component assemblers some years ago. Today, the same firms are world leaders, and in fact s ource their manufacturing designs to other countries. A legal age of Taiwanese firms are now original manufacturers of chippies. some other instance that could inspire companies to set up local manufacturing bases is the example of D-Link. D-Link is one of the very few hardware companies in India that does local manufacturing.Recently, the company tied up with Taiwan-based gibibyte Technology to manufacture and market motherboards locally. D-Link will manufacture approximately 30,000 motherboards per month. Besides magnanimous D- link a key advantage in terms of technology, it also means recitation of D-Links manufacturing facilities. The cost savings per motherboard when manufactured here works out to be approximately $5. Hence, if illume are huge, it does makes sense to source contract manufacturing to India.And for skeptics who doubt the quality of Indian products, Ram Augural, managing director, Wiper peripherals has a ready answer, Doubting Thomas who keep on unbeliefin g the quality of Indian products should know that Legend computers, the largest maker of PCs in China, buys internet interface cards from India. Going forward, if the government and the hardware industry proactively decide to work together and solve issues rather than have one hand clamoring for duty concessions, and the other avoiding issues, the Indian hardware industry could finitely go the software way-as MATT and Ernst &038 Young have verbalize.The only question to ask is whether the government and the industry are up to it. Around the world, enterprise IT deteriorate has been on the decline. The economic downturn bring together with inconsiderate or unplanned slip by on IT in the populate decade, has contributed to all this. So what is the scenario in India? As per last years survey (IS 2002-?June issue of Network Magazine), cheeseparing had committed to spend an do of RSI 554 drop on IT-related investments. This disbursement was more or less equal to what they ha d played out in the previous year (2001-2002). So, did Indian enterprises spend that derive?As per this years survey, the average amount spent on IT was only RSI 468 Lack. This implies there has indeed been a decline in IT spending. Close did not fully hire the amount they had reckoned for IT related projects. The largest spenders in 2002-03 were BIFFS, Telecoms/ IT/TIES, and Gobo. /US. The average amounts spent were RSI 1109 Lakes, RSI. 954 Lack, and RSI 649 Lack respectively. All other industry verticals show modest spends. Technology is a key component for BIFFS and Telecoms/let/lets verticals. This explains why spending on IT is high in these sectors.Also, nationalized banks have been spending upstanding amounts on computerizing. Us have traditionally been big spenders, given the need to link distant locations. And with various state governments and quasi-government institutions move initiatives like e-governance, technology has been of high-priority here too. So, which wer e the technology verticals that received a maximum oaf of the shrunken IT budget? 68 part Close said they invested in Bandwidth/connectivity last year. 64 percent in effort hardware procurement, and 48 percent in Enterprise packaged software. security measure comes fourth with 47 percent having invested in this area. More or less ? We were keen to find out the number of Close who had spent more than the amount budgeted. Nearly 60 percent said they had spent the exact amount budgeted for IT in 2002-03. 20 percent said they had spent less, while only 1 5 percent claimed to have spent more than the amount budgeted. A majority of those who had spent less than the amount budgeted are from large-sized companies (turnover exceeding RSI. 500 scores). Nearly 22 percent large-sized companies spend less on IT.The reason Enid this is obvious Most of the large-sized companies already have sizable investments in IT when it comes to automating back-end and front-end processes. In this particula r case, the reasoning was to build a buffer within the IT budget, to provision for any last minute or unlooked-for procurement/maintenance costs that may arise. Even in the case of tip IT spenders like BIFFS, Telecoms/ IT/TIES, Gobo. / Us, more than one-fifth of companies have spent less than the amount budgeted, indicating a slowdown in IT spending.On the rise over again The IT spend in 2003-04 is on the rise again, albeit slowly. This year companies plan to spend on an average RSI 493 Lack, indicating a 5 percent increase in IT spending. The major spenders are again the BIFFS, Telecoms/ IT/TIES, and Gobo. / US verticals. The BIFFS vertical is registering significant spends their average budget has climbed from RSI 1109 Lack in 2003-04, to RSI 1310 Lack in 2004-05. In Telecoms/let/lets and Gobo. / US, both major spenders last year, the parcel out budget is same when compared with last year.In around all other verticals, companies are registering a small increase in the budget allotted for IT. In terms of turnover, IT spending in medium-sized impasse is expected to grow by 20 percent, while in large organizations the IT budget may in truth shrink by 11 percent. What technology? This brings us to our next question Which technologies are companies investing in? The top areas of IT spend, in terms of technologies, are Bandwidth/connectivity (57 percent plan to invest), Enterprise hardware (55 percent), Storage (46 percent), and Security (46 percent).Both Storage and Security are distinctly gaining prominence in the BIFFS sector where information security and availability is critical. The Indian IT and Electronics market in 2003-04 was worth sister$ 20. 3 billion of which sister$ 12. 7 billion consisted of software. Electronics and IT hardware production stood at SIS$ 7. 93 billion. Some 3,500 units are active in electronics production manufacturing goods as divers(prenominal) as TV tubes, test and measuring rod instruments, medical electronics equipme nt, analytical and special application instruments, process control equipment, power electronics equipment, office equipment, components etc.Market researcher DC estimates that the market-value estimate over next 3 years for hardware products is RSI. 75,OHO scores. The Indian electronics and hardware industry as been lagging behind the awesome hood punishment of the software sector. Most of the hardware requisites of the burgeoning software and telecoms sectors are met by imports which are about 25%. The Ministry of Information Technology, Gobo. Of India has estimated that the total requirement of hardware and components by 2008 would be in range of SIS$ 160 billion and the investment required in the manufacturing facilities would be US$ 16 billion.MASCOT, the leading IT industry tree trunk estimates that to achieve a software export target of SIS$ 87 billion in 2008, the hardware requirement would be US$ 50 billion. By far the most comprehensive study was carried out by Ernst &038 Young in association with MATT, the hardware industry body in 2002. It estimates that given the right incentives, Indians electronic hardware industry has the potential to reach SIS$ 62 billion by 2010, twelve times its existing size with the domestic market accounting for SIS$ 37 billion and exports of SIS$ 25 billion.The major export opportunities would be in the area of innovative new products, contract manufacturing and design services. This shows that there are large opportunities for Indian companies to increase their strength and etch these opportunities for future growth. HOC Manifestoes Ltd is one of those companies which are on the job(p) to increase their network and making innovative new products. HOC Manifestoes Ltd. Is currently engaged in selling manufactured hardware (like PCs, servers, monitors and peripherals) and traded hardware (like notebooks, peripherals) to institutional clients as well as sell channel partners.Besides, it offers hardware financial bac king services to existing clients through annual maintenance contracts, net work consulting and facilities management. In 2003-04, Hes total hardware turnover was RSI. 12. 97 billion, higher by around 24% veer the corresponding fugue for 2002-03. Of this, manufactured hardware constituted 60%, traded hardware 32% and hardware support services 9%. The companys reported operating margins in 2003-04 (including six months of OH, telecommunication and software businesses) increased to 6. 7% from 5. 9% in 2001-02, mainly because of better margins in hardware.While average material costs declined in 2003-04, the company was able to retain a part of the margins in its product realizations. Better margins in hardware resulted in the return on capital employed (RACE) from hardware increasing from 1 1. 9% in 2002-03 to 25. % in 2003-04. In the domestic alkali PC unionized sector, HOC Manifestoes is the market leader. Other players include Zenith Computers, MM, sunlight Microsystems, Wiper, Hewlett Packard. Assembled personal computers have a large presence in the domestic home PC market, accounting for a chunk of the total sales.The overall market for background knowledge personal computers registered a 28. 2 percent growth during calendar year 2004 as compared to the previous year. What is significant is that brand PCs continue to make impressive gains against the grey-haired market. correspond to DC, the share of branded PCs grew from 36. Percent in 2004 to 49. 2 percent in 2005, registering an impressive growth rate of 74. 3 percent. Interestingly, the gray market remained flat, registering a growth of 2. 2 percent, while the total background knowledge PC market registered a growth of 28. 2 percent.According to DC, the recent re-surfacing of finance-based purchase options had an accelerating effect on the consumer desktop market, which is already witnessing a consistent drop in end-user prices for both the branded and unbranded PC segments. Among the vendors, H OC Manifestoes emerged as the market leader with a share of 13. 7 percent. The company registered a 91. Percent growth during 2004 as compared to the previous year. HP followed HOC with a market share of 1 1. 9 percent. HP too grew at a blistering pace registering a growth rate of 73. 03 percent.IBM is in the third place with a market share of 6. 2 percent. DC is not the only research firm confirming the signs of robust growth. Gardner, in a recent report, states that the Indian desktop market grew by 31. 5 percent in 2005. Says Viand Nair, Analyst, Computing Systems, Gardner India, Peaking business say-so based on strong economic growth catcalled PC purchases in both consumer and corporate segments throughout 2005. While every research firm has given different figures, one thing is common-the PC market is booming at double-digit growth rates.MATT (Manufacturers knowledge of Information Technology) estimates that the desktop PC market grossed 17. 1 lakes units in the first half o f pecuniary 2004-05, registering a growth of 37 percent over the same period of the previous fiscal. With the Indian economy booming, MATT estimates that PC sales will concern the 40 lakes mark in fiscal 2004-05. The buoyancy in PC sales can be attributed to increased usage by traditional industry verticals such as telecoms, banking, financial services and insurance, BOP, manufacturing and government.Consumption also increased in non-traditional sectors such as education, retail outlets and self-employed professionals. In future, Hes hardware sales to the institutional segment are likely to remain stable, with sustained hardware spending by all the verticals, especially the banking and financial services sector. Besides, in retail hardware sales, a continued decline of price points, facilitated in part by the recent reduction in come across duties on PCs,