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Silvio Napoli At Schindler India Management Essay

Published: 23, March 2015

Schindler, a Swiss elevator company, had decided to develop and grow its international market share by planting a fully owned subsidiary in India. Its primary goals were to achieve 50 orders in its first year and break even after four years of trading. It also planned to win 20% of the market share inside of 5 years. Silvio Napoli, had been carefully selected as he was the author of the business plan which had documented this take-off. The mindset was that Silvio could replicate his winning Swatch strategy in a rising market that had strong growth prospects.

The two key elements of his business plan strategy was (a) the introduction of a line of standardised and non-customised S001 and S003 elevators and (b) the local supply of materials and components. It had been eight months since he took up office and there hadn't been a single sale. Things had gone pear - shaped frustrating Silvio as they had hindered his attainment of the targets set for him. Firstly, selling non-standard elevators in India was myopic where customised elevators were critical to new entrant strategies. Secondly, his strategic expansion highlighted cost reduction instead of focusing on product customisation. Thirdly, communication problems and lack of vital support beleaguered the new low-cost subsidiary from its parent company. Finally, it appears personnel were not "listening".

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