Marketing of High

Tech Products
ROBERT BOSCH ENGINEERING INDIA:
PLOTTING A GROWTH STRATEGY
Team 1
Aditi Samanta 21BM63025
Soumajit Chail 21BM63057
Pratyush Raj 21BM63037
Soumyaneel Banik 21BM63165
Sougata Das
21BM63166
Chakraborty
Akshunya Mishra 21BM63045
 NON LINEAR BUSINESS MODELS
What factors make a business
DEFINITION
model non-linear?

 Non-linear business models refer to business models that do  Network effects: When the value of a product or service
not follow a traditional linear path, where inputs result in increases as more people use it
outputs, and there is a direct cause-and-effect relationship
 Platforms: Platforms that connect buyers and sellers
between inputs and outcomes
 Feedback loops: Where the outcome of a particular
 Instead, non-linear business models involve complex
action affects future actions and outcomes
interactions between various factors and elements, leading
to unpredictable and sometimes exponential growth or  Emergent behaviour: When the behaviour of a system
decline. cannot be predicted based on the behaviour of its
individual components

 Open-source collaboration: Where a community of

contributors collectively develops a product or service,
leading to exponential growth and innovation.

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 NON LINEAR BUSINESS MODELS
EXAMPLES Why?

Examples of businesses or functions where non-linear business  Non-linear business models tend to operate in these
models tend to operate include: industries because they often involve platforms or
networks, where the value of the product or service
 Technology companies: Technology companies such as
increases as more people use it
Facebook, Google, and Amazon operate on non-linear
business models.  Additionally, these industries often involve innovation
and emergent behaviour, where the behaviour of the
 E-commerce platforms: E-commerce platforms such as
system cannot be predicted based on the behaviour of its
Alibaba and Amazon also operate on non-linear business
individual components
models.
 As a result, companies in these industries can experience
 Cryptocurrencies: Cryptocurrencies such as Bitcoin and
exponential growth or decline, making non-linear
Ethereum operate on non-linear business models
business models particularly attractive

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DRIVING FORCES OF RBEI/ETT

Increasing Changing business landscape Diversification of revenue streams

competition
RBIE faced increasing competition in the traditional
The business landscape for engineering services was
rapidly changing, with the emergence of new
RBIE recognized the importance of diversifying its
revenue streams to reduce dependence on a single client,
captive engineering services market, which made it technologies and delivery models. This created a need which was Bosch. By expanding into non-captive
more difficult to achieve growth and profitability for RBIE to adapt and evolve its business model to engineering services, RBIE could reduce its reliance on
remain competitive Bosch and generate revenue from new clients

Access to new markets Leveraging expertise

Expanding into non-captive engineering services RBIE had a wealth of engineering expertise and talent, which
would provide RBIE with access to new markets could be leveraged to provide services to external clients. By doing
and geographies, which would help to drive growth so, RBIE could generate additional revenue while also showcasing
and profitability its capabilities to potential Bosch clients
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 INDUSTRY TRENDS
Global Automobile Industry Indian Automobile Industry
Trends Trends

 Increased emphasis on environmental responsibility and  Increasing urbanization and a growing middle class are
sustainability, with a concentration on electric and hybrid factors in the rise in personal car demand.
automobiles.
 Government initiatives supporting infrastructure growth
 Technological advancements, such as autonomous driving,
and manufacturing are fostering industry expansion.
connected cars, and artificial intelligence, which are
changing the way people interact with cars.  Increased competition from both domestic and
international players, particularly in the passenger vehicle
 Shifts in consumer preferences, with a growing demand for segment.
smaller and more fuel-efficient cars, as well as increased
interest in ride-sharing and car-sharing services.  A shift towards electric vehicles and alternative fuel
technologies, with the Indian government establishing a
 Globalization and the emergence of new markets, target of having all vehicles sold in the country be electric
particularly in developing countries such as India and China. by 2030.

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IMPLICATION OF INDUSTRY
TRENDS
Implication on business strategies and operations

 To satisfy evolving consumer demands, particularly in terms of sustainability and technology,

businesses will need to adapt their product offerings.
 They will also need to invest in research and development to stay ahead of competitors and keep
up with advancements in the industry.
 Players in developing countries like India will face particular difficulties with regard to local
competition, legislation, and infrastructure.
 Companies must concentrate on creating distinctive brand identities to stand out in a crowded
market and creating successful marketing plans to connect with customers.
 Overall, successful players in the industry will need to be agile, innovative, and responsive to
changing market conditions.

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 Can they Capitalize on Emerging Trends?

Yes. Primary Weaknesses Key Strengths How to Improve

They Can. RBEI’s culture and The senior managers put
Leverage Industry
ecosystem were still largely together a Central Innovation
Alliances/Partnerships to
What Works/What rooted in the era of its captive team to encourage and
deliver and develop business
business; structure of the incubate MPDPs across
in growing sectors
Doesn’t company was not conducive domains such as automotive,
Renewed Focus for growth energy, healthcare
New Talent Leverage Expertise in
Guruprasad now initiated a
The team had sound technical Electronics Industry to
Industry Partnership series of regular interactions
skills but lacked marketing capitalize on need of
Market Presence with prospective non-Bosch
and selling skills Innovation in the market
Technical Know-How clients at their premises.
Industry Knowledge Restructure internally to
RBEI had installed a process Guruprasad also identified
Established Brand achieve efficiency in
to provide seed funding but the differences in what he
History operations and be better
the process was still evolving called the “3Ps” of new non-
aligned to capture emerging
and access to such funds was linear products to redefine
Captive Mindset opportunities as well as
limited their marketing strategy
Lack of Funds existing businesses
Lack of Sales and The identification of new Focus on all functional areas
product ideas itself posed a Develop Sales and Marketing
Marketing Network including HR, with focus
challenge to engineers Capabilities in European, US
Relative Inexperience in developing top talent to focus
accustomed to captive and Japanese Markets
Emerging Tech on organization growth
Other Specialised business
Competitors
CHALLENGES FACED BY RBEI/ETT

Competitive pressure Need for Client Relationship Management

RBIE faces competition from established differentiation
To compete in the non-captive market, RBIE needs
to differentiate itself from competitors. This requires
Unlike captive services, where the client is often the parent
engineering services companies that may have more company, non-captive services require more effort to build
significant investment in marketing and branding, as and maintain relationships with clients
experience and expertise in the non-captive space
well as innovation in terms of service offerings and
delivery models.

Talent acquisition and Regulatory and legal

retention challenges Currency fluctuations
RBIE needs to attract and retain top talent to deliver Operating in a non-captive environment may
As a global company, RBIE may face challenges
high-quality services to clients. This requires offering require compliance with additional regulations and
related to currency fluctuations, which can impact
competitive compensation packages and investing in legal requirements, which can be time-consuming
revenue and profitability
employee training and development programs and costly

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GROWTH STRATEGY – HYBRID APPROACH – Focusing
both on Non-linear and Captive Revenue Models

The success of MPDPs New Set of Business High % of Revenue coming

• Needed for sustained growth that
had the potential to contribute to the
Acumen and from Captive Business
new line of non-linear products and • Competencies
A division long used to only • Over 85% of the RBEI/ETT’s business
services, which in turn had the ability captive business revenues was was coming from the captive
to generate non-linear revenues. now seen as capable of business in 2012.
• MCF - For the first time, they received generating revenues through its • Although the percentage revenue
an order from a non-Bosch client on own conceptualized designs. decreased from 97% to 85 percent in
an engineering IT product which was • This instilled in the team a new 3 years, it is still a very significant
designed, developed and marketed
sense of business acumen, with number and extremely essential for
indigenously
new competencies in customer RBEI/ETT’s existence.
• EDMS - engineering data orientation, project execution, • The technology developed can also
management solutions (EDMS) — to and people management skills be used to increase the captive
develop software product tools to developed for captive projects. business.
cater to the needs of measurement,
calibration and diagnostics data was
initiated
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