Naresh Kumra and the Amazon Debacle (A)

Abstract

This case series follows CEO Naresh Kumra of JMATEK, an a global leader in evaporative air coolers and portable air conditioners. Although Amazon had been a major sales channel in the previous year, 2017 sales were down significantly, threatening a major new round of funding. The (A) case allow students the opportunity to troubleshoot new business sales in a growing digital marketplace, and the (B) case shows how Kumra applied both his Hindu background and American MBA training to lead JMATEK out of its dilemma. Excerpt UVA-S-0310 Jan. 15, 2020 Naresh Kumra and the Amazon Debacle (A) Hong Kong 2017 There was nothing we could do wrong, began Naresh Kumra, CEO of JMATEK, a 2007 pioneer in evaporative air coolers and a global leader in portable air conditioners. I had bought into the partnership with a management buy-in (MBI) in April 2013, and, with existing management in place, we grew quickly and improved gross margins and went from loss-making in 2012 to industry top-quartile profitability by 2016. We had tremendous growth in global sales, with offices in Buenos Aires, Mexico City, two offices in Europe, a few in Asia, and in New Jersey. We were the leaders in e-commerce in our segment, with a good position on Amazon, and retail presence in Lowe's and Best Buy and other, smaller, shops, and had global exclusive rights to represent Honeywell. . . .