SILVIO NAPOLI AT

SCHINDLER INDIA
CURRENT STRATEGY
No Customization
Sourcing concept to account for 75% of
sales
No in-house manufacturing
No centralized assembly
No logistics infrastructure
S001 parts and components to be
outsourced locally
S300P wholly imported from Southeast Asia
 Logistics function to be handled by
international logistics service provider
Safety related components imported from
Schindler plant in Europe
Maintenance contracts from new sales to
be handled by Schindler India
Establish local manufacturing network
Sell 50 units in the first year
Break-even after 4 years
Win 20% share of target segment in 5
years
DEVIATION FROM INTENDED
STRATEGY
The unacceptable order of custom glass pod
elevator
4 orders of S001 but with glass walls
(disclosed later)
Increase in cost:
-30% increase in estimated costs; increase in
transfer prices
-increased import duties by Indian
Government (from 22% to 56%)
0 units sold, only 5 orders for customized
elevators
SILVIO: PERSONALITY, ATTITUDE,
PERFORMANCE
Strong-headed
Single-minded
Driving very hard
Impulsive
Impatient
Over-communicative
Hard taskmaster
Energetic
 The Swatch Project:
-developed S001, standard non-
customized elevator with parts sourced
from local suppliers
-halved the industrys standard 2030
weeks cycle time
Developed the Indian Entry Plan
Inefficiency in executing the business plan
Failure to sell estimated units in the given
time
CAPABILITY REQUIREMENT AND
AVAILABILITY
MK SINGH (Managing Director):
-first hand experience in building an
organisation from scratch
-experienced with different perspective
-sensitive to organisational power and
relationships
-generalist
TAK MATTHEWS (Field Operations Head):
-business expertise
dynamic and hands-on manager
 RONNIE DANTE (General Manager):
-hard core elevator engineer
PANKAJ SINHA (Head Human
Resources)
JUJUDHAN JENA (Chief Financial
Officer)
For a start-up, people with diverse
capabilities were required
Each member of the core team brought
different perspectives, but in the end
brought a balance to any discussion
STRATEGY TO DEAL WITH
CURRENT SITUATION
Adjust his strategy of no modification
according to the demands of the Indian
market
Go for minor customisations (glass walls)
Invest in a maintenance portfolio
Speed up the process of setting
alternative local suppliers
Devise a new cost estimate, incorporating
the increased tariffs and the transfer
prices