Moser Baer: Growth through Diversification

            
 
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Case Details:

Case Code : BSTR283
Case Length : 14 Pages
Period : 1986-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Moser Baer
Industry : Consumer Electronics
Themes: Diversification
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"…when you arrive at a crossroads, you have to take a calculated risk to turn in the right direction."1

- Deepak Puri, Managing Director, Moser Baer India Ltd., in May 2007.

"They keep on attempting to improve themselves. When their products start maturing or declining, they are ready with the next one. When the floppies went out, they moved onto CDs, and when CDs were in the mature phase, they moved onto DVDs, which are now in the growth phase. When the DVDs go into the next phase of maturity, they will be ready with the next product."2

- Raghavendra Rao, Analyst, Frost & Sullivan.3

Introduction

In February 2008, Moser Baer India (Moser Baer), a New Delhi-based storage media company, reported a net loss of Rs 204.5 million for the third quarter of 2007-08, against a net profit of Rs 376.2 million for the corresponding period of the previous financial year.

Reports indicated that falling margins in the optical storage media business were responsible for the company slipping into the red.

Moser Baer was founded by Deepak Puri (Puri) in 1983 as a provider of time-keeping solutions in a joint venture with Moser-Baer AG of Switzerland. The venture did not succeed due to labor problems.

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1] Anuradha Raghunathan, "Disc Driver,"www.forbes.com, May 21, 2007.

2] "The Amazing Moser Baer Story,"www.rediff.com, August 22, 2006.

3] Frost & Sullivan is a business consulting firm that offers market research and analysis.


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