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SILVIO NAPOLI AT
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SCHINDLER INDIA (A)
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SECTION 1 GROUP 11
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Aman DM 21111 Sarang DM 21165
.co ur
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Debakalpa DM 21125 Sriram R DM 21180
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Lasya Priya DM 21140 S Arjun DM 21184
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• Objective - To enter india in order to test
the waters of the elevator industry as it
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had a huge potential.
CASE FACTS AND
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• Developing nation
EXTERNAL
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• Real estate development due to rapid
ENVIRONMENT urbanization
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• Ban on the collapsible gate elevators -
AMAN - DM21111
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Increase in attractiveness
• Increase in Import duties
SARANG -
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• Sales force was unable to bring in orders of
DM21165
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the standardised S001
• Huge growth potential with cost conscious
re consumers.
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WAS SILVIO THE RIGHT PERSON FOR THE INDIAN
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MARKET ? DM21184 S.ARJUN
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A rigid and hard task master
• Was not willing to adapt to the market conditions
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• Tough and aggressive (Not so good a monk)
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• Tried to implement the swiss way of management (Deadlines) - Impulsive and Impatient.
• Poor communication with the European plants - loss in inputs required for the elevators.
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• Was good in strategy formulation but was weak in execution , follow ups and contingency
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planning.
• Poor vision when it came to identifying customer needs.
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ASSESSMENT OF SILVIO AS A MANAGER SRIRAM - DM21180
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● He did his homework and hired qualified people for the job.
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● He had a solid plan as to how to go about capturing market share and then eventually
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make profits.
● He met the need for a face familiar to the Indian market to be in power.
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● He didn’t understand how things get done in India and wanted everything to be done
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immediately.
● He stuck to his plans and did not keep any place for improvisations. This was not
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suitable in a market like India.
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● He followed a strategy that ensured short term success by outsourcing rather than
long term success.
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● He failed to account for the Indian mentality and in some cases, took the strategies
that were successful abroad and applied them to the Indian market.
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● He had an unrealistic target and also had no contingency plans.
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• The standard product strategy is not the best
DECISION
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approach for a new market like India.
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REGARDING THE • Customers who need additional features or
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customized products will simply consider
NON-STANDARD competitors’ products.
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GLASS WALL • Even after employing a capable team, Napoli
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did not trust their judgement.
ELEVATOR • He was so focussed on executing the one plan
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that he made and would not deviate from it,
come what may.
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• When in the business of selling to the general
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public, the strategy must always be an
LASYA - DM21140 outside-in approach.
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• European plants looking to maximize individual margins,
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driving the price up, in turn increasing excise expenditure.
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• The company should stick to the plans of outsourcing key
logistic and manufacturing function -to gain the much
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needed competitive advantage and avoid the transfer rates.
HOW SHOULD HE DEAL • To keep the overhead costs low, outsourcing from local
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WITH THE CHALLENGES companies is the best option, as there will be no need to
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HE IS FACING OVER import items from abroad, utilising cheap local prices.
TRANSFER PRICING AND •
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Since the European plants are slow in responding to
LIMITED TECHNICAL Schindler India's needs, it would be better for Napoli to
COOPERATION FROM impress upon upper management the growth potential of
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EUROPEAN PLANTS ? Indian markets, and how it would be the company’s best
interest that the Indian venture is backed by a strong global
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support system, and that global initiatives cannot be
succession if incumbent capabilities are not utilized to the
DEBAKALPA – DM21125
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maximum extent.
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• The best mode of communication would be to call them
directly. Napoli needs more power if he wants to survive,
and he must make management understand that.
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