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Johnson-Controls-Hitachi: Moving out of the Core Product Range
內容大綱
With the quarter ending December 2016 closing on a sour note after a loss of ?79.7 million, Johnson Controls-Hitachi Air Conditioning India Limited found itself reassessing its business expansion strategies. The company’s stand-alone net profit in fiscal year 2015–16 was down 35.73 per cent from the previous fiscal year. Its launch of a new range of imported air purifiers in 2015 as part of its expansion plan may have hit an obstacle with the dip in profits. Should the company enter into new segments such as air coolers, water dispensers, and water purifiers to increase its product portfolio and revenue? Considering that competitors were already fighting it out in these segments, would the timing be right? What strategic capabilities could the company leverage, and what were the possible obstacles to success in the new segments?
學習目標
This case is designed for an MBA-level marketing course that addresses strategic decision-making, analysis of potential business opportunities, and new product development and diversification. It gives students an opportunity to apply different marketing frameworks to support an analysis of a potential business opportunity. After completing the case, students should be able to:<br><ul><li>develop a framework for analyzing new business opportunities and evaluating the risks of entering a new business segment;</li><li>apply analytical tools such as Porter’s Five Forces to launching a new product line;</li><li>develop a conceptual framework to analyze the pros and cons of launching new products; and</li><li>use the brand relationship spectrum developed by David Aaker.