Case: Karbonn Mobiles: Bidding for Government Tender (No. IIMR-C8-03/2018)

Abstract

The case provides the challenge faced by Indian mobile phone vendors such as Karbonn, LAVA, and Micromax in the wake of Chinese competition. With decreasing market shares, Indian vendors have to look for all opportunities of increasing their revenue and market shares. The Indian government provides one of the biggest opportunities for Karbonn and there is preferential treatment for being a registered micro, small and medium enterprise (MSME). The case traces events in which Lloyd learns of a government tender for 20,000/- smartphones. As time is short, he has to act quickly. He contacts Veda Mode’s Sunil, who is the consultant for such government contracts.

The case then traces the collection of various documents needed to qualify for the tender. More importantly, it focusses on the problems that the company may face in fulfilling the tender order if it is awarded. It also brings the perspective of finalising the bid amount, incorporating various facts which increase Karbonn’s chance of winning the bid.