amit-ib case study analysis
TRANSCRIPT
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8/17/2019 Amit-IB Case Study Analysis
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Lal Bahadur Shastri Institute of
Technology & Management
Assignment
Case study analysis of
ELLORA TIME'S
MANUFACTURING WOES
Guided by: Submitted by:
Dr Alo! Mittal Amit Mehla
"GDM Batch #$%'%(
"GDMG)T%$$
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Case study analysis of ELLORA TIME'S MANUFACTURING WOES
The case examines the reasons behind Ellora Time Pvt Ltd, the leading Indian clocks and
calculators manufacturer's decision to shift its production base from India to China The case
explores in detail the differences in the regulatory set!up in India and China that has made
manufacturing in China much more lucrative and profitable The case also briefly mentions the
reasons for China's popularity as a manufacturing destination for companies all over the "orld
The case is structured to enable students to#
$%& understand the impact of competition from a 'lo"!cost' country that can pose a threat to the
domestic manufacturing company
$(& evaluate the basic differences bet"een the manufacturing environment and the regulatory
regime of India and China
$)& determine the factors, "hich "ere critical in Ellora's decision to move the manufacturing
facility from India to China
$*& evaluate the impact of the decision on the future of the company, its diversification plans and
its performance in domestic and export markets and
$+& discuss the conseuences of the decision of the company to shift the production facility to
China and its impact on the manufacturing sector in India
S*+T Analysis
Strengths:
• -ood brand value
• Excellent marketing . distribution net"ork
• /dmirable credit rating! 0o payment of increasing demands
*ea!nesses:
• Competition from Chinese markets $cheap labour, high productivity . lot of government
approvalas&
• 1iscouraging policy frame"ork $poor tax structure . lot of government approvals&
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• Poor infrastucture $Erratic delivery schedules&
• 2igher inventory holding costs
• 2igher corruption levels
+,,ortunities:
• To diversify in other products since they have brand . distribution net"ork
• En3oying huge market share in competition from Chinese markets
Threats:
• Indian regulatory set up $1uty of +4 on spares plys (+4 on ra" materials&
•
Illegal methods adopted by Chinese firms to capture markets