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ReadIn the Name of
Almighty Allahwho is the most
Beneficial &Merciful
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HMT Machine Tools Division
For the course of
Strategic Marketing Management
Group Members:
Noman Jehangir (8151)
Muhammad Kashif Parvez (8072)
Muhammad Shafique Ahmad (8073)
Sohaib Ali Khan (6307)
Submitted To:
Sir Samir S. Amir
Date Submitted: July 16, 2010
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HMT Machine Tool Division
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Related Environment & Marketing Strategy
Related Environment: HMT want to all manufacturing goods to be
manufactured and delivered
through one roof.
Like when all textures are join together to create one single
design, similarlyHMT wanted to manufacture and deliver all goods
through one roof
Diversification and expertise in all machine related
manufacturing Competitive advantages are low cost and skilled
engineering base
Corporate Strategy:
HMT has adopted a strategy of Diversification.
Expertise and skill acquired by building machine tools.
Diversify into other product line such as tractors, lamps, dairy
machinery,
watches, bearings etc.
Separate Business Groups for product line.
Introduction of better and new products.
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1. Innovation is not happening as fastas it should.
2. Domestic market is too small.
3. Information about market is poor.
4. Lack of training including the
concept of 5s.5. Lack of professionalism.
6. Manufacturers sell differentdesigns of machine variety istoo
large.
7. Manufacturers sell machines not
solutions.8. Information sharing is poor.
9. Absence of a Center of ExcellenceforR&D.
10. Low volume operations and notable to reap benefits of
scale.
11. Country is not industrializing atfast pace.
12. Exports are low.
13. After sales service is poor.
14. Poor product design and image.
15. Prices of machines are highcompared to China /Province
of
Taiwan.16. Small units cannot spend on R&D.
17. Absence of large number ofservice providers.
18. High cost of consultants.
19. High cost of production.
20. Input costs are high.21. Small units have uneconomical
procurement costs.
22. No formal channels ofcommunication exit.
Indian Machine Tool Industrial Problems:
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Environmental changes
Environmental changes critical to machine tool industries
are;
Technology Obsolescence:
Technology obsolescence in the machine tool business is
extremelyrapid
Higher Resource Requirement:
The restricted availability and the inability to raise resources
arecommon to all types of small businesses.
Vendor Linkages:
No other business requires such complex level of vendor linkages
asthe machine tools. For materials, electrical, electronics,
hydraulics
Diversified:
HMT is very largely diversified.
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Base Technology or take-up Key
TechnologyIt should be Base + Key technology but main emphasis
should
be on Key technology reasons why
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Technological Choices
1. Production of CNC machines.
2. Sourcing of components including electronic and
electrical.
3. Improvements in production lines.
4. Verification of designs.
5. Import of machine tool technology.
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Growth Rate of Machine Tool Industry
50% increase in 2005
Demand from three sectors: automotive, auto ancillaries, and
consumer
durables.
Much of the gain from lathes, machining centers, grinders, and
sheet metal
centers.
the Indian machine tool industry caters to other sectors such as
electronics,
consumer durables, IT products, telecom and packaging,
accounting for 50
percent of the total consumption
Global machine tool industry - $15-billion
Indian Machine tool industry - $2.5 billion
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