Where were we...
Samsung has an uphill route towards market leadership

Samsung India is now pulling all stops to ensure further localisation of its products in India. Recently, on November 13, the company announced an investment of up to $100 million over the next five years for a factory in Chennai to cater to its domestic and export markets.

There is no denying that the Korean carnival continues in the durables segment, but when it comes to a head on with LG, Samsung remains – sorely beaten! You could well call it the ultimate Digital Divide. A comparison of market shares (across CTVs, microwaves, refrigerators & DVD players) reveals the most resounding triumph for LG, while Samsung continues to play the fiddle, that too, second fiddle! Why does this divide exist? Both Samsung and LG started off in India with the same vision of localization of manufacturing. Samsung paid the price of being too conservative and sticking to urban markets. LG has played the gamble of developing and marketing products for all customer segments, especially catering to rural India. Manufacturing expansions irrespective, Samsung has to improve its product penetration, or it will be left saying ‘Oh dear!’, as it watches LG whizzing past!

The multi-billion gamble
Anil launches huge investments for GSM

By adding a staggering 6.7 million more mobile subscribers just this October, India has become one of the fastest growing services market in the world, boosting its mobile base to an overwhelming 136.22 million. This can be attributed to the falling call rates and handset prices. In fact, prices have dropped to an extent that consumers are returning fixed line telephones and switching to mobile phones. Taking cue from this enormous growth, the Anil Ambani led Reliance Communications has announced an astounding Rs.80 billion plan for wireless GSM. As the penetration of wireless services in India is moving seamlessly across states, Reliance Communications is gearing up to launch its proposed GSM services in 23 circles, other than the 8, where it already has a presence. The company has marked Rs.20 billion for Delhi and Mumbai circles and Rs.60 billion for the rest of the circles. According to the estimates, India's mobile base is expected to triple by 2010, which explains Reliance Communications’ investment plans.

Daimler on India spree
Mercedes targets sub-25 lakh segment

DaimlerChrysler is very bullish on the Indian auto market. The company launched the new, upgraded E-Class luxury saloons on November 6 this year. DaimlerChrysler is all set for another manufacturing facility in Pune, where the company will invest an estimated $56 million. Earlier this year, the US-German auto conglomerate also launched its Actros range of trucks, which will compete with Volvo & Tata in 35+ tonne category. A market feasibility study is reportedly being conducted by the company to access the need for an entry luxury (sub-Rs.2.5 million) product. According to market sources, DaimlerChrysler could look into some other brands like Chrysler, Jeep and Dodge, to cater to the demands of a growing population of affluent Indian professionals.

It's getting 'Micro'soft!
Microsoft is clearly missing its leadership days

Guess what’s Microsoft’s latest high-profile technology launch in India? No, not the Vista, not yet. It’s a host of latest technology accessories like mouse, keyboard et al to enhance the gaming experience. It looks like Microsoft does not want to take any chances with its Xbox 360, as the Sony PS3 launch is expected very soon. To Microsoft’s credit, that’s one area where it can, for a change, claim a clear headstart over competition.

It has become essential for Microsoft to zealously guard every territory it operates in, especially since silver linings like the Xbox are few and far between. In every segment, the competition is making life tough, Microsoft has been reduced to the status of a follower. It has rested too long now on the laurels of its Windows. And for how long? In the Indian market, software piracy continues to be rampant. The risk is also that with the exorbitant prices of Microsoft, open source adoption will increase manifolds. It’s high time that Microsoft brings down the prices of its Microsoft Office and Windows OS.

And to take a global perspective on the whole, even Microsoft’s monopoly is being slowly and steadily attacked by applications like Google Spreadsheets & Mozilla Firefox. Moreover, the company is still far from challenging the sheer dominance of Google in the search engine arena. Besides Vista, Microsoft is critically failing at generating significant excitement in the market, besides Gates’ philanthropic crusades of course! It would not be wrong to state that the company looks a pale shadow of its former self.

Microsoft is guilty today, not just for the way it tried to monopolise its one innovation (in fact, after the recent kiss and make up with Novell, even that looks to be history!!!) but for destroying the very spirit of innovation that it had brought in the IT world. What it now desperately needs to do is to develop and lead new engines of growth. Besides EU court allegations, if complacency were declared a crime by law, Microsoft perhaps would be a stickler for punishment. But then, isn’t it getting its due penalty for that too?

‘GE’tting better
GE plans to invest more on the Indian turf

Banking on growth exhibited by the Indian economy, General Electric (GE) plans to extract a huge $8 billion in revenues from the Indian market by 2010. With the vision “In India, for India”, GE India President & CEO Scott Bayman has declared investments of another $600 million in the country. He projects that India and China would account for $50 billion by that year (incidentally that means a mammoth $42 billion from China!). Financial services would be the major contributors to this revenue. GE’s joint venture with SBI – the SBI card crossed the landmark 3 million subscribers milestone earlier this year. GE Infrastructure in India is a $500 million business and GE is confident it can double it by next year. Locomotives manufacturing and plastics (the latter thanks to increase in mobile handset manufacturing in India) are other key growth areas identified. But one of GE’s most coveted opportunities in India comes from the nuclear deal that was signed between India and US last year (and recently passed by the US Senate). GE is expected to play a major role in nuclear power projects in India. The company has a current headcount of 13,000 in the country and plans to ramp it up to 17,000 by 2010.