When IIPM comes to education, never compromise
The Outlander’s launch in India has reignited the debate whether SUVs really have the wherewithal to run the full mile in present day conditions. The ever cynical Karan Mehrishi of 4Ps B&M refuses to die, er, a believer...
Along with defibrillation, Cardiopulmonary Resuscitation is an emergency procedure that is left for the last, when all else has failed. Not that I have ever been trained in CPR [though I do end up giving a few heart attacks to the men in my life... I mean those who’ve travelled in my car, geez], but there was no better a metaphor I could find to logically justify Mitsubishi’s launch of the Outlander in India. Well, if you thought the Lancer was the hottest babe to hit the east of Govindpuri [extn, if you please], Jack, pack your bags, the shuttle to Mars is about to leave... and I have space for just one more!
Yes, yours truly was one of the ‘Incredibles’ forecasting many years back that Mitsubishi’s Lancer launch would pole-vault it to the number one position in India! If I was wrong, they were wronger, and the Lancer the wrongest! But perish the thought Schumacher, for when Mitsubishi launched the super smooth designed Outlander in India on October 3, 2008, there was a similar resurrection of sorts doing the rounds. CPR is what I call it! This was/is the product that could rewrite Mitsubishi’s history... and future in India! And all in one go! There, I said it, as I had said it in the past. The visions of my past great glory and greater forecasts came rushing back. For the only small issue with the Outlander is that, well, er, it’s an, umm, SUV! Phew... That wasn’t so hard, was it?!
Try as hard as I may to believe to the contrary, the fact is that the SUV market globally has taken a hit worse than what Bachchan’s gut did in Coolie [I know, the simile sucks; kill me and burn my SUV down]. But first, some facts about the Outlander, and then some more about the SUV conundrum I’m facing paradoxically.
Along with its tenth generation Lancer range, the Outlander is an important pillar of Mitsubishi’s global turnaround strategy. As per its global aspirations, even the 2.4L MIVEC engine is a product of collaboration with Hyundai and Daimler. India is a rapidly growing market and can give Mitsubishi an avenue of expansion, but strangely, Mitsubishi has steered clear of volumes! At a price range that starts from Rs. 2.2 million, the Outlander will be positioned in the E segment and will be part of the newly formed SUV bandwagon. The Mitsubishi will compete with able competitors like Honda CR-V, Hyundai Tuscon, Chevrolet Captiva, Ford Endeavor and its own half brother Mitsubishi Pajero 2800. So far so good... Bachchan’s gut from here.
According to claimed figures provided by Mitsubishi-HM officials, the company sells no more than 250 units of its three prominent SUV models in a month. The company expects to sell no more than 100 units of even the Outlander in a month’s time. The competition is in a no better situation. As per SIAM data, falling to 1299 units, the sales of market leader Honda CR-V declined 12% in April-August 2008. The same fate was destined for Suzuki Grand Vitara and Hyundai Tuscon that recorded a sales decline of 47.6% and 79.6% respectively.
But what has confounded my genetically inherited cynicism [well, I’m overworked, underpaid, underweight, don’t have an SUV, and need a ‘brake’ goddammit] is that I see no hint of worry amongst the manufacturers. “The Indian market is evolving and there is a niche market where people are sporty and have an outdoor lifestyle. From next year onwards, things should start looking up,” said R Santhanam, MD HM- Mitsubishi.
Manufacturers are believers in the cult-view that even though the volumes are low in the high end SUV segment presently, there is a great scope for margins in the long term. With raw material prices like that of steel and rubber declining, players claims SUVs could indeed become – god save the BCG matrix – future Cash Cows.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
No comments:
Post a Comment