Reference no: EM132955047

Intense Competition in the Air-conditioner Industry: Dynamic Trans-spatial and Trans-temporal Strategies of Firms

The contentions of two strategy consultants from McKinsey and Accenture are as follows:

Strategy Consultant (McKinsey): "On one hand, a glut of players like Air Command, Blue Star, Voltas and Videocon have already commoditized the Indian air-conditioner market. And on the other hand, with the advent of MNCs like General Electric, Electrolux, Whirlpool and LG Electronics into the Indian market, a larger level cannibalization has taken place in this market. It is interesting to see the zero-sum game strategies adopted by these domestic and international players in this market towards grabbing others' customers whereby these firms continuously witness scintillating vicissitudes in their market shares".

Strategy Consultant (Accenture): "Looking at the success stories of Whirlpool's Sensigerator and the Su-Kam's Inverters, Voltas and Daikin have started contemplating adoption of these promising benchmarks in the AC industry in their attempt to address the imbroglio of frequent power cuts by the electric grid in rural areas where industrial customers face acute shortage of electricity for longer time periods. Though most of these industrial units are located in remote rural areas, luckily, all these customers have grossly similar product or service requirements and can afford to embrace solutions prodigally given the proven value propositions, maturity of markets and related platitudinous technologies".

What is your take on this? Simplify and exemplify your stand with due support from pertinent xizzler benchmarks, if any. Substantiate your argument with related concepts and relevant business stories of success and failure from the predecessor / contemporary firms