Tuesday, June 24, 2008

It’s the talk of the town!


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And from tIt’s the talk of the town!his massive count, a splendid 16 million alone are predicted optimistically to be DTH subscribers! Judging by the fact that Videocon, at present, has such a strong durables business, its hopes to exploit this opportunity in the DTH arena appears justified. The extensive distribution footprint and the expertise in manufacturing analog set-top boxes would also give it a thumping edge over competiton. However the strongest weapon in its arsenal is the fact that it is such a ‘seasoned’ local player (considering the national boundaries) and has already withstood the MNC onslaught – some ‘vital’ experience in India! Rightly understanding the competition, it has planned to price its set-top boxes very competitively. Market buzz says it will be priced around Rs.1500 – a surprising 50% lower than the existing market benchmark – enough to gets some competing eyes popping! Competitive pricing is surely the apt move at this juncture. Already, Relaince’s Blue Magic, Bharti’s DTH and Sun Direct are expected to be in the DTH combat zone any time shortly and with sixseven players wrestling for space (not to forget that India already has the largest number of DTH players in the world), price wars are inevitable!

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Source :
IIPM Editorial, 2008

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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