Question

09. Case study
The meeting was seriously discussing the issue of further growth of business. Mr. Gurubux
Singh, Managing Director, made the people in the meeting think about increasing business
of transistor radios in spite of declining business cycle all over the world. Mr. Singh was
confident that since there are only two players now left in the Indian market, they have a
chance to expand even in a declining market all over the world. Altogether the participants
present suggested the following:
One must explore the possibility to use the existing radio making knowledge for
some altogether new product.
2. Still there are crores of people in India wanting transistor radios that we must plan to
reach them with some marketing efforts.
3
Since business is declining we should better sell the business and get some capital
reinvested for some other business.
4.
We have good plastic moulding capacity and we should take outside work for this
segment of our manufacturing.
5.
Today, we have a market share of 40 per cent. If we can buy out the only competitor
left, we will have a monopoly and hundred per cent of the market.

6.
We must conduct a market survey to know exact prospects for our business.
Mr. Singh noted all the suggestions and was not very happy. He was wondering
whether he should choose any of these suggestions or go on his own on an altogether
new approach.

Answer the following questions :
1.
Out of the suggestions made above which alternatives you prefer?
2.
Why do you prefer these alternatives?
3.
Think of any one alternative you have chosen and see how you will think of alternative
approaches to achieve the alternative chosen?

Answer 1

Explanation:

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