HCL Beanstalk: All In-One Desktop Relaunch Harvard Case Solution & Analysis

INTRODUCTION

HCL Infosystems Ltd. established in 1976, and proved to be the pioneer in the Indian information technology (IT) market. HCL was based on offering the products which were related to computing, storage, networking, security, telecommunication, and imaging. The business earned a revenue of INR 20 billion in its three divisions, which are following: Office Automation and PC business accounted for 20 per cent of the total revenue, Systems Integration and Services Business contributed to 20% of the total revenue and Distribution and Marketing Services 60 per cent of the total revenues earned by the company.

The demanding and complicated fields like telecommunications, service industry, education, banking and financial services and power sector, HCL was serving these fields with its range of specialized expertise providing solutions to the businesses and the targeted segments. The company undoubtedly was the strongest player in the electronic industry in India, main strength included the diversified product line distributed through the strong retail chain. The company dealt with a diversified product line such as mobile handsets, office automation equipment and computer hardware.

            HCL was also involved in providing product induced with digital lifestyles via partnerships with leading companies in the world such as Nokia, Apple, Cisco, Kingston, Ericsson, Microsoft and Kodak. Moreover, different consumer segments were being targeted by the four different channels. For instance the most vital channel for the company was business-to-consumer (B2C) which targeted the home segment and mainly followed the national and regional distributors, and retailers. Whereas the other channel used by the company was business-to-business (B2B) selling products to the government, the third channel was an enterprise and commercial channel (ECC) which mainly targeted the commercial enterprises. The fourth channel was Internet-based sales, direct-to-customer (D2C).

Problem Statement

            HCL was facing the problem to regain its position in the market and was losing its market share. Moreover, the company was also struggling to arrange finance for investing heavily in brand building. Where it was challenging for the company to capture the share in the retail segment of the India AIO so that the company could gain exact share in business-to-business market.

Marketing Analysis

SWOT Analysis of HCL Infosystems

Strengths

            This is very important for a company to identify its strengths. As the proper identification of strengths leads the company towards success of the organization and achieving milestones. The major strength of the company was that it has a strong brand recognition in India. Though there were leading MCNs working in the same industry, but still its recognition throughout high as it was Indian based company. Moreover, another strength of the company was that it has a broad and strong portfolio of the products and the services that the company offers. Whereas, the alliances with the world’s most leading companies was also a strength for the company.

Weaknesses

            The company should successfully identify its weaknesses in order to make its strategy accordingly and also take steps for improving its weaknesses. One of the main weaknesses that HCL had that the products it offered were expensive, as HCL felt insecure in ordering bulk products from suppliers which resulted in high prices for the consumers. Similarly, the company also had a weakness of declining cash flow and losing its market share in the industry as the consumers were shifting from desktop to laptops where the company was struggling.

Hcl Beanstalk All In One Desktop Relaunch case solution

Opportunities

            Seeking the opportunities and working according to those opportunities can play a vital role in the success of the organization. Major opportunities that were available for HCL was that it should consider penetration in the Indian government sector through new contracts. This can be done via giving a briefing to the government sectors of the product and providing services to the government sector. Similarly, there is another opportunity for the company to target the growing market of Tablet PC in India. This can be fruitful for the company as this is a growing market and HCL already has the experience.

Threats

            The major threats for the HCL was the intense competition in the market. As different multinational companies were operating in the industry, which was increasing competition in the industry. Moreover, another threat for the company was the rapidly increasing pace with the technology. Due to changes in the technology, many products of the company could face obsolescence...........................

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