Konka Swot Analysis

  • June 2020
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Emerging Chinese MNCs: Konka Group Company Limited - A look into the future Presented by: Ahmed Binte Kashfi

Konka Group Company Limited • • • • •

Introduction Economic Analysis Company Analysis Recommendations Q&A

Syed Najibullah Rashid Rezoana Hassan Tareq Group - C

Company Analysis

Economic Analysis Impact of inflation on economic growth & exchange rate

Introduction Economic Analysis

Economic Analysis

25

P ercentage

Company Analysis

Introduction

30

20 15

Company Analysis

10 5

Recommendation

0 1992

1993

1994

1995

1996

1997

1998

Recommendation

Year

growth rate

inflation3

exchange rate

1994 1995 1996 1.13% 1.50% 2%

Group - C

Group - C

INTERNAL ORGANIZATIONAL ANALYSIS Konka's market share in China

Introduction

Company Analysis

Recommendation

30 25 20 15 10 5 0

P e rc e n ta g e

Economic Analysis

Introduction

25

4.39

5.8

9

13

18

Economic Analysis Company Analysis

Recommendation

1993

1994

1995

1996

1997

1998

1) Financially sound company 2) Already emerged as the best selling CTV brand through its own brand and low price 3) Backward & Forward linkage 4) It has set up Konka Technology Development Centre Co. in the Silicon Valley in December, 1997

Year Mkt share in chinese mkt Group - C

Group - C

1

Consolidated Balance Sheet: Konka Group Co. Ltd (unit '000 Yuan)

Net Sales & Profit Margin

Introduction

Recommendation

Economic Analysis Company Analysis

1996

1997

1998

Recommendation

6,343.00

6,000.00

5,006.00

4,000.00 2,000.00

1995

8,574.00

8,000.00 V a lu e

Company Analysis

10,000.00

2500000 2000000 1500000 1000000 500000 0

V a lu e

Economic Analysis

Introduction

0.00

3,059.00

2,400.00

0.09 0.09 0.07 0.07 0.05 0.05 1993/12

Year

3,580.00

3,610.00 2,180.00

1995/12

0.06 0.06

1997/12

1999/06

Year

Fixed assets Net current asset Shareholders equity share capital

net sales

profit margin

Group - C

Group - C

COMPETITIVE ANALYSIS Introduction Economic Analysis Company Analysis

Recommendation

BROAD ENVIRONMENTAL ANALYSIS • China facilitating international market expansion for Konka Konka is accessible to large loan (in 19971998 US$458 million)

Introduction Economic Analysis Company Analysis

• High entry costs acts as a blockade for new entrants • Demand for television is growing with the emergent number of “couch potatoes”.

Recommendation

Group - C

Economic Analysis Company Analysis

Recommendation

• Possibility to create a positive brand image through heavy promotion and advertising • Awe the market with newly developed products

Introduction Economic Analysis Company Analysis

• Existing brands (Sony, LG etc.) can counter attack Konka making survival challenging Group - C

• Research and Development is feasible for Konka for it’s inexpensive R&D cost structure. Konka spends 3% of its revenue whereas players like Sony spend around 6-7% of sales revenue on R & D. • Penetrating the market with low price better quality products.

Group - C

OPPORTUNITIES FOR AND THREATS TO AN ORGANISATION Introduction

• Existing players with strong brand recognition (Example Sony, LG etc).

Recommendation

STRENGTHS AND WEAKNESSES OF KONKA - Chinese brands are hardly recognized in the foreign market - Konka is deficient in technological advancement judge against to the industry leaders and followers - Commendable cash position would hasten market promotion •- Market entry would not be much daunting as it already has fairly strong grip in several markets Group - C

2

SWOT Analysis & Organizational Objective

NEED FOR STRATEGIC ACTION Introduction Economic Analysis Company Analysis

Recommendation

• Strategic action is required for creating strong brand image and awareness globally

ORGANIZATIONAL LONG RANGE OBJECTIVES

Broad Environmental Analysis

Competitive Analysis

• Sustain long-term growth in the global bazaar

Opportunities for & threats to Konka

Internal organizational analysis

Strengths & Weaknesses of Konka

Need for strategic action

Group - C

Organizational

long-range objective

Group - C

RECOMMENDATION Introduction Economic Analysis Company Analysis

Recommendation

• Transnational Strategy can be used to achieve core competency and to get a better hold of the markets. • Konka can use a three step penetration approach where it will - Push sales in biggest markets - Nurture its way through the secondary Market - Seek new markets

Introduction Economic Analysis Company Analysis

Recommendation

Group - C

Introduction Economic Analysis Company Analysis

• The company can welcome custom made products ordered by the customers

Group - C

Q&A

• Increase share of trade in parts and components. •Reintegrate through Global Production Network (GPN).

Recommendation

Group - C

Thank You. Group - C

3

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