What's to stop India and China?

India and China governments are loved by Economists around the world. The growth rate in GDP are high. India shows 7% growth YOY and China shows 9% growth for past three decades. This time, both goverments got brickbats from this Economist article. In India, Manmohan goverment is termed as puppet government, left aligned and non-reform oriented. In china, the new goverment's agenda on rural reform is a forced one. Banking sector is in bad state in china. Non-performable assets and defaulters rate in china comes to 50% in banking sector. while India has done commendable work in that field.

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A professor at IIM was explaining marketing concepts

A professor at IIM was explaining marketing concepts: 1. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" - That's Direct Marketing 2. You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you says: "He's very rich. Marry him." - That's Advertising. 3. You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day, you call and say: "Hi, I'm very rich. Marry me." - That's Telemarketing. 4. You're at a party and see gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink, you open the door (of the car)for her, pick up her bag after she drops it, offer her ride and then say:"By the way, I'm rich. Will you marry me?" - That's Public Relations 5. You're! at a party and see gorgeous girl. She walks up to you and says: "You are very rich! Can you marry ! me?" - That's Brand Recognition. 6. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" She gives you a nice hard slap on your face. - That's Customer Feedback. 7. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" And she introduces you to her husband. - That's demand and supply gap. 8. You see a gorgeous girl at a party. You go up to her and before you say anything, another person come and tell her: "I'm rich. Will you marry me?" and she goes with him - That's competition eating into your market share. 9. You see and gorgeous girl at a party. You go up to her and before you say: "I'm rich Marry me!" your wi fe arrives. - That's restriction for entering new markets.

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Airtel- Vodafone Deal

This strategic partnership caught my eyes today. India is well connotated as fastest developing telecommunication market. Vodafone interests in Bharti will be a symbiotic one. while bharti can establish 3G space with the help of vodafone, the latter got a sizable pie in India's telecom share. Sunil Mittal's turnaround story is an impressive one. (Will blog about his rags to riches story soon). He is great role model for all first generation entrepreuners. His business moves are closely watched by world Telcos. Bharti is first co to outsource the core teleco activities like switches maintanence and billing. Sunil always says about exiting Telecom field in his age of 50. Bharti is venturing to fresh vegetables market, infrastructure field. Its on diversifying spree. P/E of Bharti Televentures is around 150+, while rest of sensex shares are on industry average (17-20). Yesterday when Airtel-Vodafone deal was announced in the market, BTV's share rose among the free fall in prices of other sensex shares. (Sensex is in corrective mode now, due to "Foreign funds exodus" -courtesy ET).

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Retailer Watch - 1 : Casas Bahia

        World's top revenue earning company is a retailing firm (Wal-Mart). The revenue and growth potential even beats the petrochemicals industry. Last year, I read Sam Walton's "Made in America". The inspiration and management philosphies followed in retailing firm are very attractive. Growth potential is limitless;Your thoughts are your only limit. In Indian scenario, FoodWorld and Pantaloon's success shows the hidden potential of retailer market. In India, regional players and local players dominate the scene in their market. I wish to write a series of blogs on top world retail leaders' business strategy. This is about CASAS BAHIA, Brazilian.

        Heard about Casas Bahia from "Fortunes at BOP" book by CK Prahalad. Casa Bahia's business model revolves around easy financing. They are market leaders in Brazilian retailer market. Its finance arm extends credits to all commoners, not based on their earning potential. BOP customers see casas bahia as way to achieve their aim and not as a capitalist icon. (Lucky!). Passbook and EMI schemes are used extensively. The credit history decides their buying limit. Cross-selling for existing customers when they checkin for EMI payment also adds up revenue. Same kind of business plan is emplyed by retailers in Indian local market too with lesser scale. Wal-mart style discount shops with Casas Bahia style easy financing will be sur-shot business model for retailer in India.

 

   

 

 

 

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Humanity will NEVER die!

This happened when I was commuting to office today morning. In busy traffic signal, a school boy in bike hit the lady in bike before him. Accident happened in the busy office hours. Luckily none got seriously hurt. Before clock tick even few seconds, 3-4 people came to their rescue. Impulse with which people reacted and came to rescue is commendable. Showing compassion to fellow human beings only can nourish the Human spirit in world. Thanks chennaites for proving the " Humanity will NEVER die! ".

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AutoGiants Restructuring Strategy!

"Our industry is beginning a dramatic restructuring which is sorely needed." - Bill Ford

GM shown $1.5B losses in third Quarter 2005. Ford comes up with $284M losses.

GM The top line growth fall added up wih unavoidable bottom line economic crisis added to the woes. This year GM payed $2B to Fiat Auto to extricate itself from the deal to buy Fiat. Delphi, car-parts biz of GM, filed chapter 11 bankruptcy protection. GM is faced with high labour costs, it says $1500 in price of every new vehicle goes towards health care for past and present employees. Leading credit agencies downgrade its debts to "Junk" status.

Ford Motors Ford is also facing problems with intransigent unions. Ford plans to shutdown NorthAmerican factories in the January restructuring plan. Bill Ford has to tackle labour union leaders to go ahead with the restructuring plans.

However the detroit carmakers are circumventing the main problem: American market tilt towards japense automakers. In past, GM's sale has fall down by 25% and Gord by 20%

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This is how stock markets work!!!

It was autumn, and the Red Indians on the remote reservation asked their New Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was Going to be. Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared. But also being a practical leader, after several days he got an idea. He Went to the phone booth, called the National Weather Service and asked "Is the coming winter going to be cold?" "It looks like this winter is Going to be quite cold indeed," the meteorologist at the weather service Responded. So the Chief went back to his people and told them to collect even more Wood. A week later, he called the National Weather Service again. "Is it Going to be a very cold winter?" "Yes," the man at National Weather Service again replied, "It's definitely going to be a very cold winter." The Chief again went back to his people and ordered them to collect Every scrap of wood they could find. Two weeks later, he called the National Weather Service again. "Are you Absolutely sure that the winter is going to be very cold?" "Absolutely," The Man replied. "It's going to be one of the coldest winters ever." "How can you be so sure?" the Chief asked. The weatherman replied, "The Red Indians are collecting wood like Crazy." This is how stock markets work!!!

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