THE FUTILITY OF PRICE WARS

The moment a company spots a low-cost competitor, it would do well to ask itself this question: Is our new rival targeting a segment we don’t want to serve or will it eat into our sales? If the new entrant has set its sights on customers no other business serves, incumbents must wait-and watch and this often works for companies operating in super premium segments. Take the case of easy Cruise, set up by the London-based serial entrepreneur Sir Stelios Haji-Ioannou. Since easy Cruise doesn’t offer lavish meals and expensive shows, it is able to charge low prices. But incumbents like Royal Caribbean & Cunard have left easy Cruise alone. Available evidence shows that price wars don’t work in incumbents’ favor. In the late 1980s, Aldi, Dell, E*Trade & Southwest Airlines more than held their own when Carrefour, Compaq, Fidelity, and United, respectively, triggered price wars.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

More IIPM-News:-
IIPM RANKED AHEAD OF FIVE OF THE IIMS

Typical Aldi Outlet

That’s how Aldi, the Essen-headquartered retailer that owns Trader Joe’s in the US, has thrived in the brutally competitive German market. Aldi’s advantages start with the size of its product range. A typical Aldi outlet is a relatively small, 15,000-square-foot store that carries only about 700 products, 95% of which are store brands compared with the 25,000-plus products that traditional supermarkets carry. The chain sells more of each product than rivals do. Aldi now owns 4,100 stores in Germany and 7,500 worldwide. Aldi doesn’t exactly pamper customers. At the same time, Aldi gets the basics right and keeps customers happy.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

More IIPM-News:-
IIPM RANKED AHEAD OF FIVE OF THE IIMS

TRIO FACING JAIL TERM FOR TAKING BRIBE

Corruption was splattered on the faces of IBM, NCR and Hitachi, when a 20 page verdict was handed down by an Intermediate Court in Beijing last month. The three large multinationals were named and identified as having pai bribes to the now former Head of China Construction Bank – Zhang Enzhao in the form of highly luxurious gift s accounting to more than $500,000. This transaction though happened through a Chinese contact named Zou Jianhua. The motive of the bribe was aimed at acquiring Chinese contracts for providing IT services. Though Zhang Enzhao was sentenced to 15 years of imprisonment, interestingly, none of the companies were charged with any crime.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

Also Read:-
INDO-AFGHAN TIES
IIPM Students Life > Campus Placement
About IIPM > Mission
http://pankajsir.42tales.com/

Business Houses

Business houses such as Godrej Group decided to spin-off areas that were not core to their businesses, while Dabur Group has been increasing its footing in the fast moving consumer goods (FMCG) segment. The $500 million Lalbhai Group invested on new age technologies to sustain its presence in the textile industry. On the other end, as an anti-thesis to the core agenda, Reliance (then headed by Dhirubhai as a single group) showed that it wasn’t a focus on core, but rather efficient project management, whether in petrochemicals, textiles, chemicals, education, telecommunications or the most recent foray into retailing, which defined how successful one could be.

For Complete IIPM-Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

BRANSON’S BIG BRAWL WITH BSKYB!

Guess what has dragged Sir Richard Branson to the newsroom lately? It’s not Virgin Group, but rival UK pay TV operator BSkyB. The issue cropped up when Branson (holder of 10.6% stake in NTL) called Britain’s Office of Fair Trading to arbitrate, after Rupert Murdoch’s BSkyB purchased a 17.9% stake in the national broadcaster ITV plc. Branson (NTL’s biggest shareholder) is actively blaming BSkyB’s deal as the one ‘distorting competition’. BSkyB’s $1.77 billion investment came at a time when there were talks about a possible merger between NTL and UK’s main commercial broadcaster ITV. As per the current UK media ownership rules BSkyB is prevented from controlling an interest of more than 15% in ITV. Branson is accusing BSkyB’s action of dominating ITV and hampering the interests of other stakeholders.

For Complete IIPM-Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

BRAND : Moser Baer

BRAND : Moser Baer
HEADLINE : Love it, Moser Baer it.
BASELINE : NA
AGENCY : TBWA

4Ps TAKE : A global front-runner in the compact disc territory, Moser Baer continues to break newer grounds in communication too! This ad has been specifically designed keeping the Indian audience in mind. A wedding is an emotional event and the idea is simply to keep that moment alive forever. Moser Baer’s simple, but powerful, consumer proposition is with a Moser Baer DVD/CD, the mehndi and the fragrance of that unforgettable event will never fade away, simply because only a Moser Baer product is capable of accurately recording and retaining the freshness of the most cherished moments in our lives. Certainly, when anyone says that and with such confidence, how can the customers keep their hands off the product for who’d argue over happy memories being priceless?

For Complete IIPM-Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

Talent Shortfalls

Claims Manav Thadani, “...the shortfall will multiply six times in 2007... and 18 times in 2009! These indications clearly point towards a major talent drought.” The talent shortfalls have resulted in higher salaries and also inter talent and intra talent poaching. The only way to deal with this is to act now. Hoteliers can tie-up with hotel management institutions or they can start their own training schools for the same. The retail giants like Pantaloons and Reliance Retail are following the same pattern. Furthermore, hoteliers need to fortify their HR practices so that the access to a new and fresh talent is consistent and attrition is no big problem.

For Complete IIPM-Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

TV 18

With IQS gone CMW was rendered unable to cater to the data provisions for its audience and hence gave way. The new avatar, with previous employees of CMW holding on their posts, under the name of NewsWire18 Pvt. Ltd. is a strategic fit that adds value to the TV18 news company. Needless to say, Haresh Chawla, Group CEO, TV18 is ostensibly elated, “This transaction and the news and data platform complements our leadership brands in the financial news and information space and will help us extend our dominance to the institutional segment and serve it better.” Rest assured its one home made news that would make news on TV18 for sure...

For Complete IIPM - Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006