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Schindler was established in 1874 in Switzerland by Robert Schindler. In 1889, the elevators
has been started to manufacture by company. Then, Alfred N. Schindler, fourth generation the
company. Schindler is the leader in supplying escalators and second largest Swiss based
company which supplies elevator. CEO, Alfred Schindler decided to enter the India market
since it is a growing market. Therefore, Silvio Napoli, who is a graduate of Harvard MBA and
head of the corporate planning of the company, charged for developing a strategic plan in
India.
Since 1996, Schindler has not direct operations in India except distribution agreement with
ECE. After terminating it, they had a technical collaboration with Bharat Bijlee LTD. (BBL).
Then, the negotiations between BBL and Schindler resulted badly and that agreement was
terminated as well. Afterwards, in order to understand the India market, they agreed with
Boston Consulting Group. They narrowed 34 potential partners to 8 and it was understood
that the candidates were not appropriate for the partnership. Thus, decisions changed to start a
Silvio Napoli was a young man with a family. These properties made Alfred Schindler¶s mind
to choose Napoli as a GM for Indian company. He thought that only a young person can adapt
himself to a different culture and he relies on him for making strategic plans. I think, he is a
well-educated man with an orderly family life. As he is younger than the others, I agree that
he can adapt easily but he is lack of experience in some aspects. Since his colleagues
mentioned he is impatient, hard driving and very communicative and these properties are not
Napoli, first built a management team in India. Some of them were from the elevator industry
and some of them were not. Thus, Napoli arranged some meetings for explaining them the
history and activities of Schindler and also touched upon elevator industry a little bit. As their
relations developed, the team started to understand that Napoli is different from Indians. He is
so aggressive but it is important to be both aggressive and patient. As one of his colleagues
mentioned ³He wants everything done yesterday. And in India, things don¶t get done
yesterday.´ Also, he defined the strategy as entering market with standardized products and
outsourcing the key manufacturing parts and logistics functions in order to lower the costs. He
set a goal which was selling 50 units for the first year and then winning 20% of market share
in 5 years. However, his plans did not work as he wanted and they could not sell even a unit
in 8 months. As we consider these circumstances, Napoli¶s performance for seven months was
not so well but it is hard to adapt to a new environment and also he faced with some
difficulties about his family and Schindler¶s company culture was really different than Indian
companies. Thus, I guess with taking right actions he will be successful in the future. Things
will go right when he settles down properly and will start to understand Indian culture better.
Silvio Napoli has challenged with some problems in that seven months. First, he was going to
planning to sell standard products in India but the demand for customized elevators were
much more than the standard ones. Another problem was about costs. The actual cost of
transporting was 30% higher than the expected cost. Lastly, the Indian government increased
the rates of import duties. The first challenge can be solved by producing customized products
to meet the demands of customers. As it is cited, there will be service challenges but
improving services will be a better solution than not producing customized products. Since,
most of the customers demanded glass wall elevator, Schindler should respond to that. I
believe that Napoli should be happy instead of worrying about his strategy because his plans
As a recommendation for the second challenge which was the increased transportation cost
and limited technical cooperation from European plants, the company should acquire an
existing manufacturer and distributor. It will make them earn more profit since they will have
a strong local knowledge and also an established service base. Also, they will have the
opportunity to improve technical equipment as they have an established plant. They should
develop their sales and marketing forces. This will yield to increase revenue and they can
reach their goals to win 20% market share within five years by using local knowledge. Since,
Napoli could not adopt their culture very well, and then he should cooperate with a cognizant.
In conclusion, as I mentioned above Napoli changed both his plan and his mind. He is too
aggressive for Indian culture. He has to be sure about where he is and adapts the
understand the culture and traditions of that country. He started with a too certain plan but it
should be more flexible since Indians are not so disciplined as Swiss people. Thus, buying an
existing company will make them act according to local knowledge. Since, Indian people are
eligible to produce these kinds of electronic equipment; they can manufacture parts locally
instead of importing them from Europe. Consequently, they will burst from the import rates of
government regulations and both transportation costs. Reduction of costs will increase
revenue so Napoli will reach one of his goals. Also, they have to customize their products
partially according to the demand. Since they are custom-oriented company, they should meet
the demands of their customers and they have to provide qualified service. They can
customize their basic products up to a point and have the win to win situation. Customers will
have what they want and Schindler will build a reputation and brand awareness in India. As to
conclude I believe that the strategy of Napoli should be revised and the rights actions such as