Bedazzled @online

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

To put in simpler words, the whole idea was to operate at a loss and just focus on garnering maximum market share in the initial phase in the hope that profits would follow soon. However, due to this flawed strategy, profits never followed and eventually, when the companies had burned most of their capital, they started falling like a house of cards.

A report published by Forrester Research in early 2000 predicted the demise of most dot-com retailers by 2001. The report’s major prediction was that the brick-and-mortar spin-offs will regain their footing. It also outlined that online retail will actually become a losing game for the traditional merchants, based on the assets like customer history, product selection, fulfillment and manufacturer relationships, which are a given in the case of brick & mortar retailers.

Casualties of the dot com bust were most new Internet start-ups, which boasted of a unique business model. Companies like online grocer Webvan became the poster children of the dot com burst. Webvan had a unique idea of selling groceries online and wanted to grow very fast. Indeed, it became a $1.2 billion company before low grocery margins took a toll on its flawed business model. Similar was the case of Pets.com, a company that sold pet supplies online. Problem with Pets.com was that when it came to the shipping cost, it undercharged its customers, which resulted in a high pressure on its margins, leading to a collapse, nine months after it raised $85 million through its IPO.

Interestingly, according to analyst Sebastian Rupley, “Even the dot-com sites that survived often came perilously close to severe setbacks and have had to retool their businesses quickly. During 2000, hundreds of dot-com companies, such as drkoop.com, received notice from the NASDAQ stock exchange that their stocks could be delisted, because their share prices had dipped below $1!”

If one considers all the above examples and the trends that led to their debacle, the global Internet economy looks to be heading towards yet another dotcom burst. “Today, everything from YouTube to the local church has a social-networking angle. And this doesn’t even consider the actual social-networking sites, from MySpace to LinkedIn to Facebook to even ‘Second Life’. This scene is totally out of control and will contribute to the collapse for sure,” says Dvorak.

Well, shouldn’t the Internet economy take lessons from the 2000 bubble burst and see that the Internet giants are not moving in a similar direction? If they do not undertake well informed strategic decisions, they are going down the same road. Well, its too hard to predict the next bust and its severity, but people are no longer denying the possibility. As Dvorak adds, “Each succeeding bubble has been worse than its predecessor. Thus nobody is actually able to spot the cycle... I can assure you that after this next collapse, nobody will think of the dot-com bubble as anything other than a prelude.” So, in essence, we could perhaps safely conclude that not much has changed.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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MOHAMMED BIN AL ALABBAR - Building new india

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

MOHAMMED BIN AL ALABBAR
Building new india

Kolkata property market has grown by leaps and bounds over the years bygone and is today one of the most lucrative investment destinations in the country. The city has allured around Rs.250 billion in real estate investments over the past two years. As compared to other Indian metros, the capital of West Bengal offers cheap cost of living which serves as its biggest attraction to residential properties.

Kolkata has seen the entry of many foreign players in the market during the past few years. Leading Middle East firms have joined the list of global companies, targeting investments in India in hotels, malls, healthcare, housing, IT Parks and integrated townships. Several leading UAE real estate companies such as Al Ghurair Group’s ETA Star, Al Rostamani Enterprises’ KM Properties, Nakheel and Dubai Properties have announced gigantic developmental plans in the country. Of these, the name of Emaar stands tallest when it comes closest to contributing to what India achieves in this field during this century.

Emmar has reached the pinnacle of its success under the aegis of its current Chairman Mohammed Bin Al Alabbar. Emaar, which not surprisingly is also the largest property developer in the Middle East, has announced a joint venture in India with MGF for developmental projects in the states of Delhi, Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra. It is also coming up with a lucrative real estate project on the EM Bypass of Kolkata.

The entry of a company like Emaar shows the strength of the Indian Economy & also the scope of Indian real estate industry. A report by Jones Lang LaSalle estimates that $10 billion foreign direct investment will be injected into the Indian real estate sector in the next 12-18 months. Now this is huge and precisely where the entry of such big-ticket foreign players comes in. Entry of such players definitely brightens up the real estate scenario in the country and for the country, but is accompanied with a simultaneous challenge for them too – either shape-up or ship out. The benchmark of quality production, marketing, and every possible aspects of a business has automatically risen with the entry of Alabbar into the country. And where we talk about infrastructure defining what this century holds for India, the message is clear – the entry will definitely affect the real estate scenario in our country, whatever the predictions be; and Alabbar will be the key man defining the moments.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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75 ARCHITECTS OF THE INDIAN CENTURY

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

Purists are encouraged to be outraged after going through this list of 75 individuals who are expected to contribute a great deal in make the 21st Century an Indian one. What? No Rahul Gandhi? No Ambani brothers and Kumarmangalam Birla? No Ratan Tata? No Barack Obama? No Hu Jintao? No Salmaan Rushdie? No Malvinder Singh? Not even Shahrukh Khan or Abhishek Bachchan?

Well: after you have cursed us roundly for this seemingly wildly compiled list, please draw your breath, take a glass of water and try and listen to this simple and short explanation we have for selecting the individuals the way we did for the list. There is no esoteric science involved here. We took a conscious decision to let go of the very obvious names, who are going to play a pivotal role in the future of India. They are widely talked about and even more widely covered by the media in this regard. So it was decided by our edit team to concentrate on people who may not necessarily be as famous as the people mentioned above; but are nevertheless going to play a defining role in India’s future. And then again, lest you lose your temper again, we decided as an afterthought to include some famous names after all! Happy speculating!

RICHARD BRANSON
India can fly!
Richard Branson is a man known for his flamboyance & his daredevil approach to life. He has the ability to convert any given business opportunity into a success. However, much as he has the capacity to make the next century an Indian one, he will have to wait for sometime as current Indian regulations prohibit foreign airlines from holding a stake in Indian carriers, which in turn means that India’s dream of being the super-force in the aviation business will have to wait as the government has indicated that this will not happen until the industry has returned to a viable state. Optimistically, we’re looking at a scenario where it is very unlikely that a Virgin airline will operate in India until after 2010.

People are also confused about the most recent investments in the mobile business by Branson. Yes, this would increase the brand value in the country and of course there are synergies between different Virgin products, the investment in the mobile sector would in all probability have been made on its own rights, without an eye on any future aviation presence. Virgin’s aviation business has operated various different models – the full service Virgin Atlantic, low cost Virgin Express and hybrid Virgin Blue. The group will take a call on the positioning of Virgin Airlines in India based on its assessment of the market at the time of entry. Moreover, Virgin will also have the advantage of the second-mover and can avoid ‘early bird’ mistakes.

Also, talking about his challenge to the Indian carriers, his presence would also not kill the growth prospects of budding Indian airlines – perfect ingredients to make a spanking ‘Indian’ century! Talking about his closest threat, it is also clear that neither Richard Branson nor Vijay Mallya operate solely in the aviation sector. Hence, their areas of interest are wide enough to ensure that there is no issue of one overshadowing the other. While we say that Branson will catalyse the process of India shining in this century, it becomes very important to add that India already has its own broad base of accomplished entrepreneurs and it is the home-grown businesses that will make this century an Indian one. However, welcoming Branson early would wonderfully accelerate the process

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
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IIPM Ranked No. 1 B-School In Global Exposre - Zee...
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IIPM Ranked No. 1 B-School In Global Exposre - Zee...