2. INTRODUCTION
Robert Schindler established the company in 1874, Switzerland.
Elevator manufacturing began in the year 1889.
Alfred N. Schindler took over the company in 1987 and he sought to change
the company’s culture.
Company has over 38,000 employers.
First Schindler elevator in India was at 1925.
In 1985, Schindler entered into technical collaboration with Bharat Bijlee Ltd
(BBL), Mumbai.
After a decade, Schindler was planning to establish its own operations in
India.
3. INTRODUCTION
He aimed to manufacture standardized elevator at a lower cost than the
existing one.
Product is most customized.
Imported parts were most preferred.
Used latest techniques to build.
The entire supply chain was redesigned.
Cycle time was reduced to half.
4. THE INDIAN ENTRY PROJECT
Napoli was offered job to create Indian subsidiary.
Boston Consulting group was engaged by Schindler to look for alternative local partners.
A detailed business plan for Schindler project was approved by Corporate Executive
Committee (VRA ) in 1995.
$10 million investments were made.
To avoid India’s high import tariffs & to keep costs down.
The plan also proposed that all manufacturing and local activities be outsourced to local
suppliers.
5. THE INDIAN BUSINESS PLAN
Purpose:
- Outsourcing key manufacturing and logistics functions.
-Rapid urbanization in India.
-Sell a focused line of standard products.
-Economic liberalization.
-Ban on collapsible gate elevators.
-High-rise office facilities.
6.
7.
8. CHALLENGES
As the implementation of his business plan stalled after 8 months in India and he
still had not installed a single elevator, while his plan showed first-year sales of 50
units.
Increased import duties.
Key management personality conflicts.
More than cost estimated.
The internal environment of the organization was informal according to the
employees
9. CONCLUSION
First they had to focus on limited towns with key customer
base.
As soon as the company grows they must have increased
their customer base.
They should to come up with new technology and innovative
ideas.
Their business plan was partially successful.