The Electronics Corporation of India Limited (ECIL) (D)

Abstract

This case describes the situation faced by the Consumer Electronics Group (CEG) of ECIL, a multiproduct, multidivisional company. CEG is mainly in the business of manufacturing and marketing black & white and colour TVs. It was among the earliest manufacturers of TVs and had built a solid brand image in the seventies. After 1982, the advent of competition led to erosion of its market share. The Group was designated a non-thrust area and no major investments were made. The case brings out the existence of two different kinds of industry structure in the same industry: fragmented in the case of B&W, and fairly concentrated in the case of colour. The decision problem is whether to compete in both the segments or only one, or none at all, and how to compete in the chosen segment(s).