Murugappa group head quarter- Chennai employees- 28,000 No. of registered companies- 29 diverse areas of business- eng, finance, insurance, cycle, sugar, farms, plantations, bio-products, nutraceuticals - PowerPoint PPT Presentation

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Murugappa group head quarter- Chennai employees- 28,000 No. of registered companies- 29 diverse areas of business- eng, finance, insurance, cycle, sugar, farms, plantations, bio-products, nutraceuticals

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Title: Murugappa group head quarter- Chennai employees- 28,000 No. of registered companies- 29 diverse areas of business- eng, finance, insurance, cycle, sugar, farms, plantations, bio-products, nutraceuticals


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Murugappa grouphead quarter- Chennaiemployees-
28,000No. of registered companies- 29diverse
areas of business- eng, finance, insurance,
cycle, sugar, farms, plantations, bio-products,
nutraceuticals
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TI cycles India
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TI cycle part if Tube Investment of
Indiabusiness of 7300 crore2nd largest mfg of
bicyclestop brands- BSA, Herculesno.of stores
till today- 12certified with- ISO 90012000and
ISO 14001
5
VisionNo one should lose business with whom you
do business, so the company will be successful
6
MissionEthical norms in dealing with all the
stakeholdersProvide value of money to customers
through quality and servicesTreat employees with
respect provide opportunity to learn
innovativeness and creativity in business.
7
Competitors of TI Cycles 
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Interpretation. The market share of TI s not
significant in terms of its competitors which
must be improved through market and product
development. It should exploit the market in
special category and standard category. 
10
Core Competencies. Murugappa Familys
experience, knowledge, values, decision making
and strong financial support has played important
role in the success of TI over a long time
period they came to rescue the company when ever
the company needed the guidance and support.
11
SWOT Analysis
12
StrengthsStrong Financial Support from
groupBrand name awareness Most cycle
enthusiasts know the TI name. TI is known as a
high-performance leader in the bicycle industry.
Good relationships with customers/dealers.
Research and Development capabilities TI RD
department keeps them up to date with the latest
technologies involving manufacturing of
bicycles. 
13
WeaknessesAccuracy of future analysis.Lack of
established manufacturing capabilities.No
products offering in motorcycle category. Lack
of global operations.No new market
tapping.(North)
14
OpportunitiesInternet/Mobile introduces new
avenues to customer. This can save costs of
dealerships. New markets in India and around the
worldEntry into the lower cost bicycle market
may add to market share.Entry into market where
Bicycles are the substitute product.
15
ThreatsThe popularity of less expensive
substitute products (Scooty)More competitors
entering the market.(China,Tiawan)Shift of
demand for higher priced to lower priced
bicycles.Unsure trends in the bicycle industry.
16
Value Chain Analysis of TI CyclesSUPPORT
ACTIVITIES
17
Firm Infrastructure. Dedicated management
teamHome-grown Financial SupportFormal Planning
and ExecutionProcurementAll necessary inputs
provided by one location shop floor only few
input are imported. 
18
Human Resource Management UnionisedCompetitive
Pay structureFringe benefitsDivisional
Monitoring Technology a) Indigenous
Technical system and facilities b)
Appropriate RD c) Total Quality management

19
PRIMARY ACTIVITIES Inbounds. Frames, Forks,
Mudgaurds, Rims, Tubes, Tyres Operations.
Manufacturing of Metal tubes, assembling of parts
by charge brazing and welding. Out Bound.
Complete Knocked Down kits to dealers in small
quantities in cases. 
20
Marketing/Sales. a) Well knitted dealers network
and sub-dealers.b) Sales cum services
showroomsc) Effective advertisement and sales
promotion through celebrities organizing
events. Services.CyclinicsServices and Spare
parts available at show rooms
21
Five Force Model Application
22
Rival. TI is facing stiff competition from the
rival companies Like, Avon, Atlas, Hero and few
foreign competitors. The competition is strong in
standard cycles because the market growth of
standard cycles is slow. But it is weak in a
sense that market for special cycles is growing
rapidly. Switching cost in special is low so the
buyer may shift the demand.  
23
New Entrants Over all the industry is growing
so there is strong threat of new players
particularly form China, Indonesia and Taiwan
with low priced cycles. It is also weak because
access to distribution channels is difficult and
strict regulatory control of the Government.
24
Substitute TI is facing a considerable threat
of substitute because close substitute of cycles
Scooty which is offered by Hero but switching
cost is high.
25
Supplier  TI is not facing sizeable threat from
suppliers because the major parts of cycles are
manufactured by them except some of the parts for
special cycles are imported from Japan.
26
Buyers The Dealers and sub-dealers are
compelling to provide the cycles of their choice
(Special) which may cause losing the market for
standard cycles. Buyers switching cost is low
because of the availability of Hero, Atlas, Avon
and Chinese Cycles in the market
27
Future Strategic Options
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Market Development The TI should consider
following future strategies for the market
development.Northern markets should be focused
for broadening sales.Offering cycles to Indian
Postal Services.Offering cycles and tricycles to
Ice Cream vendors, Home delivery services
restaurants, Tea Companies and Soft Drink
Companies. Offer cycles to courier
companies.Offering cycles for athletes.
29
Product Development  a) The TI should
develop an advanced version of standard cycles
for rural area by adding shock
absorbers to carry heavy load with ease. b)
light and folding cycles should be developed the
urban areas to avoid traffic
congestion and parking problems.A purpose built
cycle with wide carrier for lunch providers in
the urban areas. Purpose built cycles for house
wives with added carriers.
30
Recommendations 1. TI should focus on
redeveloping its bicycle manufacturing. 2.
Include lower cost segment of bicycles. Create
another brand of bikes. These bikes will be
of the lower cost variety. 3. Outsource
manufacturing of lower cost products to different
countries. 4. Change distribution strategy to
include major retailers. Lower cost line can be
sold in these stores. 5. Include sales
over the Internet.
31
Overall, there is great room for improvement on
TIs position. Although the threats to TI are
large, the company has opportunity that it is not
currently taking advantage of favourable
environment. Although the situation is not
attractive, with the right change in strategy, TI
can have a brighter future.
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