HCL Beanstalk Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

The paper attempts to describe the problem statement for HCL Beanstalk while conducting the internal and external analysis of the company. The internal and external analysis of the company is performed through the application of SWOT analysis, Porter’s five forces model, 5C analysis, BCG matrix, and a detailed segmentation using the brand positioning pyramid matrix. Furthermore, the paper entails in providing recommendations and the summary of the entire paper.

Problem Statement

Due to the increase in market growth for AIO product category in the last quarter of 2010 in the Indian market, HCL anticipated that it would need to capture 10% of the AIO consumer market. However, the executive vice-president of marketing at HCL is concerned about the selection of the target segment. The company is in the state of paradox as it needs to identify its target segment through the use of geographical segmentation or it shall apply psychographic variables.

Analysis

5C Analysis

Company

HCL is the premiere global IT Indian company which has been the first to launch AIO Beanstalk product in the AIO desktop PC. The company has been located in Noida, Uttar Pradesh. HCL offers different product varieties in hardware and software business, while its product line is weaker than the multinational giants of the industry.

Collaborators

Collaborators refer to the distributors, suppliers, and the alliances formed by the company. HCL has formed strategic alliances with many different multinational companies which have allowed them to offer products of wide variety. The company distributes its products through retail chains, and also through the company’s official chains.

Customers

There are many customers for the company in the particular industry and these customers include individual customers for the household purposes, small and medium enterprise, large companies, government bodies, and educational institutes.

Competitors

There are many multinational companies which include Dell, Sony, HP, Lenovo, and many other local companies are the competitors of Beanstalk. The company faces a strong competitive rivalry since the market for AIO products have emerged in the country. Companies have been targeting their customers by selling at a lower price so that a customer may shift from using alternatives and substitutes.

Context

There is very little intervention from the government according to the cross-border laws and regulation. Moreover, technological development has become rapid due to which companies including HCL have been trying hard to succeed in the continuous improvement of its business processes.

SWOT Analysis

Strengths

First Indian company to launch All-In-One (AIO) desktop computers in the Indian market in the year 2007.

Providing diverse product categories through retail chains.
Strong strategic alliances with global information companies which include Apple, Microsoft, Nokia, and many others.
Significant player in the consumer and the commercial desktop
Failed to attain a higher market share for laptop product category
Due to low sales in the AIO desktop market, the company phased out of the particular market.
An increase in the growth of AIO product category by 30% in 2015
Consumers shift towards purchasing low priced AIO products
Under severe competitive pressure from the multinational companies
Low cost AIO desktop products

Weaknesses

Opportunities

Threats

Porter’s Five Forces

Threat of a New Entrant

The threat of a new entrant in AIO market is high as companies do not have to manufacture the product to launch in the Indian market, however, these companies can import from ODM and sell under their brand names. This strategy makes it easier for new companies to cater the market and needs of its consumers.

Threat of a New Substitute

Notebooks, laptops, and desktop PC’s are some of the substitutes of AIO’s product category. There is a significant threat of a new substitute in the market as HCL competes with the global competitors and as well as AIO companies. The threat for new substitute is high.

Competitive Rivalry

The AIO industry is based on Original Design Manufacturer (ODM) and the local marketers. The ODM companies develop their product through market and researches which are mostly from Taiwan and China. The local marketers either import the same products from ODM or ask ODM’s to develop a product according to their specification for the Indian market. The local marketers then market the particular brand under their own brand names. Competitor’s rivalry is high...........................

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