Rise of Selco India

Assignment Taken

QUARTER FINAL S5 | BUSINESS CASE SCENARIO 13

Case Understanding

Selco India is a pioneer in the field of solar energy in India however for years now Selco has only catered to a very limited market that is mainly the rural areas in Karnataka, the company has seen an increase however this increase has been limited in terms of rate of growth.

BCS Solution Summary

Selco India has the expertise and experience to become the largest solar player in the market and with the right expansion strategies the company can cash in on its years of market understanding.

Solution

Solution

Selco India has the experience and expertise to become the largest market player in the solar space in India. However, this can be achieved only through the right expansion strategies. The relevant expansion strategies are as follows:

Manufacturing expansion:

Since Selco India has previously seen a bad patch due to solar company associations and reduced productivity due to increased solar prices, the company has set up their manufacturing units to reduce cost of production so that the product becomes cheaper for the end consumer as well. Manufacturing will also allow Selco India to gain expertise in the entire process of production.

Market Penetration

Another suggested expansion strategy is emergence into adjacent markets. Since Selco India has only catered mainly to Karnataka it can plan an expansion to other regions in the south in the next 2 years and then gradually move to the northern states of the country.

Product Diversification Strategy:
Selco India can expand its offerings from solar to other renewable and efficient sources of energy like wind power, hydro and micro-hydro kinetic generators. Note: however this shall be adopted once they have gained a strong foot in the solar space.

The management team can set up a common community centre managed by the villagers in rural communities for efficient problem solving this will allow Selco to improve its reputation and grow quickly through word of mouth. This will also generate employment in villages.

Conclusion

If the management is able to employ these strategies with the right people and in the right phases of growth Selco will be largest player in the market.

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