Mudra Communications Case Solution

1. Key Facts

1. Mudra was established in 1980, and by 2006, it established itself as India's third largest Indian agency.

2. Mudra became famous for promoting the Indian media sector by producing advertisements in India by the Indian people for the Indian media.

3. Mudra helped several local entrepreneurs to build up their brands which include Krack, Rasna, Vimal, Dhara, Big Bazaar and Symphony.

4. In 2006, Mudra underwent a transformational process with more focus towards the role of IT with aims of rebranding.

5. Mudra developed itself to become a full-service agency.

6. The barriers to the advertising industry are low as well as the associated costs which have resulted in intense competition.

7. By merging advertising with the IT industry would ensure Mudra have control over the work processes.

8. The industry has low switching costs due to homogeneity.

9. The growth of ERP gained prominence among the businesses as it resulted in productivity improvement.

2. Symptoms

1. Due to the media industry being at the growth stage, Mudra promoted local business to earn the name

2. By helping local brands develop, Mudra created demand for its services.

3. Considering the growth in media and technology, the business model of Mudra is being shifted to incorporate IT.

4. The proposal of using ES within the business projected the ROI of $275,000 per annum.

5. The proposed cost savings breakup shows workforce and labour cost to reduce substantially.

6. Competition is intense placing intense pressures on cost

7. Brand loyalty is absent which is why the switching costs are low

8. Quickly changing and an unexpected business market has led to businesses to develop software processing real time data to manage profitability

9. A major challenge that the business has is that effectively implement its newly proposed Enterprise Software system.

3. Problem Statement

A challenge for Mudra is to effectively implement its ES system such to maximise the benefits derived from it. The current environment shows that billing has become a form of barter within the industry which can pose a problem for Mudra’s ES as the absence of receipt of payments may make the system ineffective. Furthermore, the problem is to identify whether to go ahead with developing all the modules of ES and how to go about it considering the restrictions and to change the dynamics of the media industry.