Coolex Airconditioners

Case Brief

The case describes the process followed for developing a strategy and the problem being encountered by the management.

The management is not clear as if they are having right kind of approach for developing the strategy or they need to change present practice. The case also discusses various strategy formulating approaches. Currently the company is following traditional approach

Company Facts

Coolex Founded in 1965Main business: Air conditioning manufacturing /

servicesMain products: Central air conditioning

Unitary condition unitDuct air condition units

Market share: 40 %Close competitor: Airtemp 15 %CEO: Mr. T. R. JagmohanConsultant / advisor: Asish MahapatraTotal Business : 620 CrorePresent Strategy Formulation Approach:Traditional / Planning

Terminology

• Caramal custard route• Regulated environment• Mundane annual ritual• Synergy across business• Emulate your competitors• Fragmented Market• Unitary air conditioner• Duct air condition system• Brains-trust• Ersatz banana

• One stop national shop• Business mix• Static picture of competition• Competence based approach• Modular schedule for project• Margins instead of volumes• Turnkey ability• Outsource project management expertise• Malaise

TERMINOLOGY

What are the strategic issues discussed in this case study?

What are the strategic management approaches highlighted in the case study?

What is the problem of Coolex firm?

Mr. Grisih had said that relationship management is their core competence? Is it and How? What kind of strategy will you recommend and why, to fully exploit this competence? Suggest measures too.

Core competence - 1

• Mr. Gopal said “their core competence is going for margins instead of volumes”. Is it competence or other wise? Discuss.

• What should Coolex do to exploit this competence or if it is weakness than how it should be overcome?

• What strategy should be formed? Give reasons.

Core competence - 2

Core competence - 3

• Mr. Debashish Rana has pointed out that their core competence is area of trading operations. They have finest logistics support and diversified products range of product. Discuss this core competence.

• How can it be made basis for future strategy? Suggest the strategy and reasons for this suggested strategy.

Core competence - 4

Mr. A V Raman said ‘We have large share of talent in the industry. 650 engineers and 1200 technicians’. Is it core competence? Discuss.

Suggest ways and means to capitalize on this core competence.

Q-1 How should Coolex evolve its strategy? Should it continue with its conventional approach, with its focus on the

external environment, in the face of potential competition?

• Question 2: Is it feasible to link strategy-planning at Coolex with its core competencies? OR is the compentencies based approach to strategy development old wine in new bottle? Has Collex got grip on its core competencies at all?

Question 3: Is there an alternative to the traditional approach to strategy formulation?

Question 4:

Are the managers of Coolex asking the right questions? What should be the road – map for Jagmohan and his team?