Rbv on Schneider Elctric India

RBV of Schneiders spoil in the Indian Retail Market
In partial completion of the course CTC, by Prof Srinivas Gunta, EPGP 2011-12
sixteenth June 2012

Schnieder Electric: From RIN to VRIN
Schneider Electric till year 2011 was only targeting the long corporations and contractor grocery
in India for its power generation and energy energy products. But this changed after the
arrival of Oliver Blum to head the India operation. Blum pertinacious to strip into the take market
to directly sell their products to the end customer. The sell foray gives Blum a huge opportunity
to reach homes directly. Blum extremityed to be pledge in every sector of electricity from power
generation equipment to distribution to security systems across businesses and residential areas
and
finally
reach
the
end
user.
However to enter the retail market Schneider had to gain access to a retail communicate which the
company never had. It had products that can be sold to this market but didnt have the resources
to access this market.
Blum hence decided to acquire Luminous Power Technologies Pvt Ltd which had around 25,000
retail outlets. This was a strategic move since now Schneider has gained access to the retail
market to sell its Schneider branded premium electric products.



It has also decided to rebrand
rough retail shops to exclusive stores selling only Schneider products. This will increment the
visibility of the brand along with penetration in the retail market. The retail outlets will also
continue to sell the Luminous brand, competing with loss leader Anchor, in the cheaper range.
To take a RBV on Blums strategy, clearly he wanted to generate more value from its premium
products, that were so far only restricted to large institutions and contractors. By gaining access
to a large market through the retail network it move from RIN to VRIN, by making something
that is rare (high quality products), inimitable (technology) and non-substitutable (brand) more
valuable.
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