Sample Case Study on Strategic Cost Management

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Helix Corporation Narsee Monjee Institute of Management Studies August, 2013 ASTHA AGARWAL KUNAL ABROL PRASHANT ARORA RAMANDEEP SINGH SAGAR SACHDEVA Helix Corporation “The market today has become a red ocean. With the cut throat competition in the market, other players have started undercutting the prices. I have little idea how they will sustain their operation in the future. In this environment of sheer madness, I don't see how we can follow suit without axing our own feet. The rapidly changing environment has forced us to think on our feet, maybe in an unconventional way, if we are to steer ourselves through this mess.” - John Wiser John Wiser, Managing Director, Helix Corporation, was looking out from the window of his corner office, pondering what the future held for his 8 year old organization. This evening he had had a meeting with the new sales director of his company, Mr. Mark Douglus who updated him on the grim bottom line for the last quarter. The competition was constantly pushing them to reduce their prices and therefore their costs. In their attempt to maintain profit margins, their market share had plummeted like an object freely falling under gravity. He was contemplating on the formation of a cross functional team to decide on the target price that they would want for themselves in order to have a better profitability without sacrificing the sales volume. It had already been a long week and from what it seemed, it would be an even longer weekend. Helix Corporation began its journey 8 years ago when John and his brother Will wanted to take advantage of the booming mobile handset market in India. They had firmly established the products of their organization as a value for money in the minds of the Indian customer. With an annual sales of over 5 million units, it was the leading smartphone manufacturer in the country.
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