Johnson Controls-Hitachi: Aiming to Consolidate a Market Lead

Case Solution

Sandeep Puri, Shivani Upadhyay, Shubham Sharma
Ivey Publishing ()

At the beginning of 2017, India was among the top 10 markets for Johnson ControlsHitachi Air Conditioning India Limited, accounting for around 10 per cent of its revenue. The company was trying to increase its room air conditioner (RAC) market from 11 per cent to 20 per cent by 2020. It was positioned in the premium segment of the RAC market but wanted to enter the popular segment, which was crowded with established players. The company’s focus had been on the inverter air conditioner (AC) segment, which accounted for 40 per cent of its RAC revenue; however, because of this segment’s market potential and growth, competition from key competitors was stiff. Under these circumstances, the company faced the dual challenge of finding the right strategy to establish itself in the popular RAC market and deciding how to defend its position in the inverter AC segment.

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