Team MembersKhizar KhanSajid KhanMuhammad Zeeshan

Shalimar Room Air Coolers Sukkur

Background: Sukkur city, having population of around 1 million with 51% belong to urban and 49% belongs to rural area, is the third largest city of Sindh province and the hub of many small and large scale industries. Cement, cotton textiles, tobacco, leather, paint and varnish, sugar, biscuits and bakery and flour mills are among large scale industries. Beside that there are many small scale industries among which Room Air coolers industry is the one. This industry has only three manufacturers in it with total investment of 1.3 million rupees. “Shalimar Room Coolers”, established in 1986 and located at Golimar in Sukkur, is the leading player of the industry and have 68% market share.

CURRENT SITUATION:

Shalimar Room Coolers has been doing a profitable business, based on cost leadership, since 22 years. It started with only fifteen hundred rupees by two persons and now worth more than 10 million rupees. Shalimar Room Coolers is now facing certain challenges and threats in its sustainability as well as some opportunities in the market. Its market share has declined from 89% to 68% in past five years and the situation is showing no sign of improvement in future. So the owners and management team is planning to go into entirely different area of competition that is manufacturing of air conditioners in low price in Sukkur. This plan, along with its all challenges and risks, requires investment of around 50 million rupees.

Problem:

Is this risk really worth to be invested? What is going to give Shalimar Room Coolers an advantage before the Big Fishes (Giant Competitors) already exists, in the market? How the firm is going to achieve its low price strategy while in the existence of Big Fishes in the market?

Objectives:

In this case study we will see:

Firstly, the managerial structure of the manufacturing firm and how is the firm achieving cost leadership as compared to their competitors. What are the causes of decline in market share of Shalimar Room Coolers?

Secondly, the proposed plans of action by management team and its implications? Thirdly, the competitive edge of the firm in new market. Lastly, we will go through the expected outcome of the project and how the target market

welcomes the new product of the firm?

Results:

We will visit the firm and acquire the latest plan of action on the project and organize it into a case study of the firm.