Micromax – The Indian consumer electronics MNC

Table of contents

Micromax is a rather big name today – in fact, it is the largest Indian mobile phone company. It is interesting to note that it took birth as a software company called Micromax Informatics Limited in the year 2000 by a group of four friends. – Rajesh Agarwal, Sumeet Arora, Rahul Sharma and Vikas Jain. In 2008, Micromax entered the mobile phone market and just about managed to get a foot hold, with a 0. 59% market share during the first half year of its existence. By the end of March 2010, its share was 6. 24%.

Now it has 23 domestic offices across the country and international offices in Hong Kong, USA and Dubai. Presently, the company has about 1400 employees. It is one of the leading mobile phone manufacturer in India as well as in the world . According to industry analysts, as of 2012, Micromax leads the Indian tablet market with a share of 18. 4%, ahead of Samsung and Apple, and is the third largest mobile phone vendor in terms of volume. Also it is the 12th largest handset manufacturer in the world, according to global handset vendor market share report from strategy analytics.

SWOT Analysis


  • Innovative products and features- Marathon battery mobile phones with a 30-day battery life, phone which is programmable as a universal remote control, gravity phones are some of the features which have increased the popularity of the product.
  • Low cost of production – With its plants located in China, Micromax bears a low cost in production due to availability of labour at cheaper rates.
  • Effective promotion campaigns- Micromax has been promoting its products through famous celebrities and has also had tie ups with MTV.


  • Weak brand image in urban areas- Micromax has still not been able to establish itself well in the urban market as its main concentration had been on the rural population.
  • Perception of low-quality Chinese brand- Micromax has a manufacturing unit set up in china which has strengthened this perception among people.


  • Increase penetration in urban market- Since Micromax has not yet entered this market; it has a very huge opportunity to establish itself in this market.
  • Entry into international markets- Micromax has the potential to make its presence felt on global scale eventually as it establishes itself in the domestic market.


  • Increasing competition from local and international players- With well-established players like Nokia, Samsung, etc. Micromax faces a tough competition from these players.
  • Replication of business model by competitors- Micromax`s business model has been replicated by many new players which again pose a threat to Micromax.
  • Micromax Informatics Limited has announced its foray into Maldivian telecom space through an exclusive partnership with Sense Wood Maldives (Pvt) Ltd.


  1. Focus on urban market at large: On capturing major share of urban youth market, for next two years Micromax needs to focus on urban market at large like seiner citizens, physically handicapped etc.
  2. Focus on smart phones as well as tablets: Micromax needs to continue focus on smart phones and launch more products and also it needs to focus on tablet market. For 2014: 1. To start new plant and reach market share of 20%:

To increase market share, it is essential to increase production capacity. Micromax has plans to start a new plant in Tamil Nadu. With the help of this new plant, it will be able to reach a market share of 20%. Focus on international markets: On making strong focus on rural market and urban market in India, Micromax needs to expand to international markets and enter into neighbouring Indian countries, south African countries etc. So we see that Micromax has established its place as a market leader in phones and tablets, not only in India but internationally as well.

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