Latest issue of Forbes draw my attention to latest model of Audi A8.
Though I am not a great follower of automobiles and gadgets. But, this seems like a dream car!!!
http://www.autoguide.com/manufacturer/audi/2010-audi-a8-l-review-1204.html
http://www.india-server.com/cars/features/audi-a8-115.html
Sunday, October 31, 2010
Sunday, October 24, 2010
The business model of Joint Venture
Sometime back I wrote about the Hero Honda and Honda competing in the Indian automobile market. Now, it’s been agreed that Honda will exit from the joint venture. Around ten years back Honda started its own Indian venture and started competing with scoters to begin with. And the business strategy worked so far. We have similar stories with Suzuki moving out of TVS JV and Yamaha from Escorts.
In my previous organization; I have seen a JV very closely; starting from scratch to become a full fledged company and I always believed that was a master stroke to form a JV there by getting a steady business and access to latest technologies. It was a product JV and building a services business around would have made sense and exactly it was built around this concept. And it was a great success.
Initially, it made sense to both the counterparts, for Indian counter parts; who wanted cash for expansion and access to latest technology; it was a great win situation. For foreign counterpart it was more of access to new market and knowhow of local market. But in license raj this knowledge of local market only meant the knowledge of how to get the required permission from government. Rest of R&D, product concept, marketing, launching was done by foreign counterpart. It worked well in this way for some time and there were so many success stories around this model.
I remember reading somewhere about GE-Wipro joint venture which was conceptualized to be a great story. Over the years both the parties realized the drawbacks and decided to pull out. If my memory serves me correct, somewhere Premaji said it was the best thing happened to look beyond GE.
An overseas partner is expected to bring three advantages to the table; money, technology and brand. The relevance of these three things to be evaluated in current context. Indian businessmen are no more strapped for money. Many of them have done big-ticket acquisitions in India and abroad. And in last few years democratization of technology happened and technology is available for acquisition. Thus, Indians can buy the required technology out of the shelf rather than a JV. Now days, Indian brands are making more sense, and Indian brands are truly global now a days.
Thus, Hero is not seems to be worried about this breakup. TVS survived this and running stronger without Suzuki. The size of multinational, which appears to be a great advantage for JV is no more a positive point of India Inc.
In a way, the playing field has been leveled between multinationals and India Inc.
In my previous organization; I have seen a JV very closely; starting from scratch to become a full fledged company and I always believed that was a master stroke to form a JV there by getting a steady business and access to latest technologies. It was a product JV and building a services business around would have made sense and exactly it was built around this concept. And it was a great success.
Initially, it made sense to both the counterparts, for Indian counter parts; who wanted cash for expansion and access to latest technology; it was a great win situation. For foreign counterpart it was more of access to new market and knowhow of local market. But in license raj this knowledge of local market only meant the knowledge of how to get the required permission from government. Rest of R&D, product concept, marketing, launching was done by foreign counterpart. It worked well in this way for some time and there were so many success stories around this model.
I remember reading somewhere about GE-Wipro joint venture which was conceptualized to be a great story. Over the years both the parties realized the drawbacks and decided to pull out. If my memory serves me correct, somewhere Premaji said it was the best thing happened to look beyond GE.
An overseas partner is expected to bring three advantages to the table; money, technology and brand. The relevance of these three things to be evaluated in current context. Indian businessmen are no more strapped for money. Many of them have done big-ticket acquisitions in India and abroad. And in last few years democratization of technology happened and technology is available for acquisition. Thus, Indians can buy the required technology out of the shelf rather than a JV. Now days, Indian brands are making more sense, and Indian brands are truly global now a days.
Thus, Hero is not seems to be worried about this breakup. TVS survived this and running stronger without Suzuki. The size of multinational, which appears to be a great advantage for JV is no more a positive point of India Inc.
In a way, the playing field has been leveled between multinationals and India Inc.
Sunday, October 17, 2010
The Web we use
Think about how the internet has changed and is changing over the years. When it started it was more using the browser and was used to share information through static web pages.
Then it started slowly changing and internet commerce came in to existence where bank transactions, share market dealing, purchasing started happening over the web. This is where the internet boom got created and overnight millions of companies mushroomed out and died quickly. The companies who are having strong fundamental business plan survived.
Offcourse, Google changed the internet habits and established the concept of availability of information through searching, thus making information more accessible.
But, now think about a typical day today. We use a Facebook or Twitter application to keep in touch with friends, read mails through a push mail application like Blackberry, iPhone etc, use news aggregator to keep yourself updated about happenings around the world, watch a video on Youtube on a special application, download a song of movie using Torrent, play a game of online scrabble on the iPad, make a skype call on WiFi phone, use Blackberry or other device to quick chat using instant messaging system.
All these used the Net but not once used the browser to do it. You are using closed application which might actually piggyback on the internet but don’t use the browser to do any of these. Actually, thus we are killing the web!! It is estimated that at one time, accessing the Net was a 90per cent web browser job. Today it is less than 40 per cent (This is as per an analysis)
Thus the web as we know is dying very fast only to be replaced by the web that may just keep evolving and probably might last longer.
Then it started slowly changing and internet commerce came in to existence where bank transactions, share market dealing, purchasing started happening over the web. This is where the internet boom got created and overnight millions of companies mushroomed out and died quickly. The companies who are having strong fundamental business plan survived.
Offcourse, Google changed the internet habits and established the concept of availability of information through searching, thus making information more accessible.
But, now think about a typical day today. We use a Facebook or Twitter application to keep in touch with friends, read mails through a push mail application like Blackberry, iPhone etc, use news aggregator to keep yourself updated about happenings around the world, watch a video on Youtube on a special application, download a song of movie using Torrent, play a game of online scrabble on the iPad, make a skype call on WiFi phone, use Blackberry or other device to quick chat using instant messaging system.
All these used the Net but not once used the browser to do it. You are using closed application which might actually piggyback on the internet but don’t use the browser to do any of these. Actually, thus we are killing the web!! It is estimated that at one time, accessing the Net was a 90per cent web browser job. Today it is less than 40 per cent (This is as per an analysis)
Thus the web as we know is dying very fast only to be replaced by the web that may just keep evolving and probably might last longer.
Wednesday, October 13, 2010
The mind games people play
I was reading about heated arguments between an Indian player and an Australian player last week (BTW, I happened to see the entire teams of India and Australia in Taj-Chandigarh where I happened to be there on a business dinner).
This incident reminded me one incident happened in IIT campus when I was a student.
Me and my partner were participating in double wicket cricket tournament and we were most probably the top contender for winning. We had the best combination of bowling and batting. (I used to play good cricket by the way).
During the final, a second year B.Tech guy and his partner were playing against us. When we were bowling he started saying ‘this is going to be wide ball, this will be full-toss and hit him to six etc etc’. We both carried away by these comments so much that we started exactly bowling as what he was saying. Clearly, we allowed him to take over our minds.
And then, during batting, he will scream, ‘they don’t know batting, here you go, missed the ball’ etc etc. Needless to say, we again carried away and eventually lost the game from being very well positioned to win.
When I analyzed this whole incident; it appeared to me that I got so angry by his comments and decided to prove him wrong; in that tempo lost my natural game and thus was not up to the mark.
That day, I learnt a lesson, however angry you are; don’t let your analytical mind make any permanent decision at that point in time. I guess, I learnt how to deal with such situation and don’t over-react (This is only applicable to business life though, in my personal life I think I over-react)
This is working for me and Australian episode made me to think on the incident that happened in my college days.
This incident reminded me one incident happened in IIT campus when I was a student.
Me and my partner were participating in double wicket cricket tournament and we were most probably the top contender for winning. We had the best combination of bowling and batting. (I used to play good cricket by the way).
During the final, a second year B.Tech guy and his partner were playing against us. When we were bowling he started saying ‘this is going to be wide ball, this will be full-toss and hit him to six etc etc’. We both carried away by these comments so much that we started exactly bowling as what he was saying. Clearly, we allowed him to take over our minds.
And then, during batting, he will scream, ‘they don’t know batting, here you go, missed the ball’ etc etc. Needless to say, we again carried away and eventually lost the game from being very well positioned to win.
When I analyzed this whole incident; it appeared to me that I got so angry by his comments and decided to prove him wrong; in that tempo lost my natural game and thus was not up to the mark.
That day, I learnt a lesson, however angry you are; don’t let your analytical mind make any permanent decision at that point in time. I guess, I learnt how to deal with such situation and don’t over-react (This is only applicable to business life though, in my personal life I think I over-react)
This is working for me and Australian episode made me to think on the incident that happened in my college days.
Sunday, October 03, 2010
Your TV is heating up!
The competition is picking up to capture audience on your small screen. The differentiation of big and small screen is reducing fast. And working in TV is no more considered as demotion for big stars.
Look at how the general entertainment section, business news, general news segments are competing with each other! Be it Colors, Sony, Zee, TimesNow, ET Times, or CNBC. If Colors comes up with ‘Big Boss’, Sony is replying back with KBC and so and so forth. All are trying to catch you during the primetime.
Interesting part of the entire strategy is they have a business plan as how to capture the audience through content for target audience concept. For example, MTV focuses on youth; ‘Khataronke ke khiladi’ focuses on youth as well. The prime time serials are having target audience of ladies.
So, the competition to grab your attention is catching up and TV channels are mixing their contents in such a way, which appeals to bigger market segment and there by trying to cash. Look at the stars who are performing for us, Amitabh, Shahrukh, Salman, Akshay, Priyanka, all big screen stars.
Is this a sign of consolidation?
Look at how the general entertainment section, business news, general news segments are competing with each other! Be it Colors, Sony, Zee, TimesNow, ET Times, or CNBC. If Colors comes up with ‘Big Boss’, Sony is replying back with KBC and so and so forth. All are trying to catch you during the primetime.
Interesting part of the entire strategy is they have a business plan as how to capture the audience through content for target audience concept. For example, MTV focuses on youth; ‘Khataronke ke khiladi’ focuses on youth as well. The prime time serials are having target audience of ladies.
So, the competition to grab your attention is catching up and TV channels are mixing their contents in such a way, which appeals to bigger market segment and there by trying to cash. Look at the stars who are performing for us, Amitabh, Shahrukh, Salman, Akshay, Priyanka, all big screen stars.
Is this a sign of consolidation?
Subscribe to:
Posts (Atom)
