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.
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Source : IIPM Editorial, 2006
An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative
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IIPM RANKED AHEAD OF FIVE OF THE IIMS
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 a democratic political system. It has been stated in the First Article itself that the boundary of Bhutan is inviolable, an obvious rebuff to the Chinese. Incidentally, the Chinese soldiers marched into the Bhutanese territory on November 2005 on dubious pretext, and since then, have been building roads in those areas totally ignoring the Official Bhutanese protests. Increasing military garrison in the region can be read as another Chinese endeavour to do another ‘Tibet’ in the region. Unlike the power hungry counterparts in neighbouring Nepal, the monarchy here has been officially labeled as the ‘friend of the people’, meant to satisfy the genuine aspirations of people. These steady transitions, minus the usual ‘revolution’, has almost been an unheard thing in modern geo-political history. The world, indeed, needs to learn, even if from the tiny-tots in the international arena.
figures, could easily have taken the top position, after having offered a dividend of Rs.20 and Rs.30 in FY 2003-04 and 2004-05, respectively. But with a stock split and payment of Rs.4 per share as dividend in the subsequent fiscal, its ranking plummeted two levels below. If one were to consider the financial year 2005-06 alone, Essel Propack is the company with the maximum dividend yield for that period; it paid out an aggregate dividend of Rs.22 per share for the financial year. Tube Investments of India Ltd. is the second best for the same period of FY ‘05-06. The company paid out Rs.23.50 per share as aggregate dividend in that year. GTl Ltd., Godrej Consumer Products Ltd. and Monsanto India Ltd.
is a better yardstick for weighing the sense of devotion to one’s motherland. We pride ourselves on being in a nation where economic progress and new age modernity blend with the longstanding heritage and rich tradition, why then should unsavoury events, such as these, unfold? Love thy country; revere thy brethren... Vande Mataram!
momentum would continue as OECD forecasts a GDP growth of 3.9% in 2006, much higher than the expected growth rate of 1.8% of the European region. It has posted the third largest growth rate in Europe without a single failure since 2001. A robust growth in household consumption, strong trade balances and high gross fixed capital formation are the main drivers behind this upswing in the GDP growth. The value for Swedish exports touched $180.72 billion in 2005, an impressive rise of 6.6% over the previous year (Central Bank of Sweden). Electrical & telecom equipment, machinery, passenger cars, pharmaceutical products and iron & steel are the main export items.
maximum purchase of suiting material happens from the business community,” says Vikram Mahaldar, Sales Manager, Raymond Ltd. If Raymond is focussing on institutional buyers, then rival Pantaloon is focusing on regional customising. “Our USP is what we sell in Durga Puja in Kolkata and that’s totally different from what we are designing for Diwali for the entire country,” boasts Bina Mirchandani, Head, Category Management, Pantaloon Retail India. The Birlas are betting big with their brand Digjam for this festive bonanza. This Diwali, the company will add as much as 350 new designs for their ‘Milan Collezioni’ range and will divulge ‘jacketing material’ to gamble on the juvenile segment. “This is the most important time of the year and customer looks for new collections in Diwali,” feels Rajiv Pal, GM, Marketing, Digjam.
in his black Fiesta! After reaching Goa, one of his friends complains that he doesn’t have a swimming costume; Abhishek immediately changes their final destination to Ooty instead! So, the entire assembly of Ford Fiesta’s back tracks and heads toward Ooty! The positioning with this latest commercial is crystal clear: Fiesta is for the impulsive youth and combine sits zing appeal with characteristic sturdiness. Fiesta has already redefined the category break-up in automobiles, being as it is positioned somewhere between the B and C segments in the country. When Ford approached JWT for Fiesta, the brief clearly was: “You have to make it bigger than ‘Josh’, reveals SN Mohan, VP and Senior Creative Director, JWT Chennai.
The Indian textile industry has a golden opportunity to catch up with China in the post quota regime and become a massive generator of export dollars as well as jobs in the country. Yet, the Left will simply not allow the labour policy reforms, desperately required to make the Indian textile sector more globally competitive. Pleads S. P Oswal, Chairman of the National Textiles Committee of CII, “In an industry like textiles, which is very much seasonal demand oriented, the government must give certain flexibility to labour laws, like what China and Bangladesh have. I am not talking about hire and fire, but there should be freedom to work.”
