Archive for the ‘IndustryNews’ category

What is oneworld?

February 25th, 2010

Oneworld
OneWorld is one of the world’s three largest global alliances of airlines. It was formed in 1999 by American Airlines, British Airways, Canadian Airlines, Cathay Pacific and Qantas Airways. It was formed with a vision to generate more value to customers than any airline could do alone. Together they have more than 2200 aircraft and service more than 720 destinations in 142 countries.
How do they create value for the customers?
The group members have set operations and maintenance standards which help each member to provide the best services in its region. Oneworld was also the first alliance to introduce interline e-ticketing which gave travelers reach out the remotest of places without any hassle. Apart from this the every customer of this alliance have access to the airport lounges of any member airline. This optimizes the capacity utilization of private lounges and increase the ROI for airlines. This was one of the main reason for which the member airlines experienced minimum loss compared to others during the recent financial crisis.
Recently, Vijay Mallya lead Kingfisher Airlines has signed a memorandum to join this alliance. Post which it will become the first Indian company to join this alliance. Earlier Kingfisher bought Deccan Airlines to end the price war in India but still the airlines industry in India is facing substantial losses. However, this move of Kingfisher might help this airline create more value for its customers and the shareholders.

Rogues

Brand Ambassador of Cricket!

February 24th, 2010

The launch of IPL two years ago changed the way people looked at cricket. IPL brought the concept of evening matches and created billions of dollars of wealth for its stakeholders. Many thought that the one day internationals and test matches would vanish soon. However, today’s innings played by the brand ambassador of cricket “SACHIN TENDULKAR” proved that there is still enough juice in the traditional cricket to last for at least a decade. His magnificent innings of 200 runs not out was the first by any cricketer in the history of one day internationals. This century of his was his 46th. If cricket is the religion of India then Sachin is the God.
Today’s match saw a huge jump in advertisements and the advertisers left no stone unturned to show their creativity. Some were awesome and some made people wonder, what is the link between the ad and the product? e.g. J.K. cement was the most unrelated ad, but it did what it was intended to: it created enough brand awareness which a highly creative and expensive ad couldn’t have done. This upsurge in advertisements might give an additional push to the much advertised and highly awaited IPL. With every such innings or match, cricket benefits and hence the IPL. So, the stakeholders of IPL have reason to celebrate!

Rogues

Fashion of recalls!

February 24th, 2010

maruti a-star
The automobile companies have made it a habit to recall their vehicles or is it the season of recalls. This time it is neither Toyota nor Ford but it is India’s largest seller of passenger cars Maruti. Last year it launched its A-Star in Europe to cater to the entry segment cars. The Indian version of this car already has a big pie in the small car segment. However, the 100,000 A-Stars exported is said to have some problem with oil seals (o-rings) which failed in a number of instances.
Why so many recalls?
I think that the quality checks performed before launch of the cars are not being followed religiously or there is a loophole which is being exploited liberally or the recession has made the companies to cut cost at the cost of quality. In-spite of knowing the fact that such recalls may tarnish the brand image of the company, the companies give green flags to new models to reap the benefits of first mover advantage in respective segments. Let us hope that these organizations at least continue to own responsibilities for such debacles.

Rogues

Microsoft Adorns Social Outlook

February 20th, 2010

mailing software
Microsoft, one of the largest software companies of the world with revenues of $ 58 billion in 2009, is planning to make its outlook software more social. It was revealed by group product manager Dev Balasubramaniam through a video posted on their website. It is said that Outlook 2010 will allow us to interact with the leading social networking sites like Facebook, LinkedIn and MySpace. This will give the mailing software a substantial competitive advantage over other mailing softwares. The only problem which they may face is the up gradation of current customers of lower version of outlook to the Outlook 2010. However, this innovative product will help them launch themselves in the huge market of social networking.
The timing of the announcement might help Microsoft take advantage over the controversies over privacy to Google Buzz users.

Rogues

Consolidation in the online search industry..

February 19th, 2010

Now you will find Microsoft’s Bing search engine in all yahoo pages! Microsoft’s move to buy Yahoo’s internet search and search advertising business has been cleared.The European Commission ruled that the deal “would not significantly impede effective competition”.
How will this move affect the online search market?
Currently, Google is the market leader and is growing at much higher rate than the industry average. Amidst Google’s controversies in China over security and copyrights Microsoft has launched a soft attack by grabbing the opportunity to grow strong. Microsoft can now promote its technically sound search engine to a better and larger target segment. Together yahoo and Microsoft will now control 10% of the market share which is no where when compared to Google’s 90% market share but access to larger market can be exploited with strong strategic initiatives. Thus, this consolidation is likely to create more value for the customers in the long run.

Rogues

US Securities are no more safe!

February 19th, 2010

US federal
India and China, the largest developing economies of the world have decided to reduce their investments in the US government securities. The increasing level of fiscal deficit and unaccepted policies implemented in US have been some of the few reasons for its declining popularity. Once upon a time China was the single largest investor in US government securities.
‘Change is the only thing constant’ and is it beginning of the shift from Westernization to Easternization?

Rogues

World’s Cheapest mobile phone by Vodafone

February 17th, 2010

vodafone-logo
Vodafone recently launched the world’s cheapest mobile phone ‘Vodafone 150′ which is available at less than $15! This low cost mobile has basic features including voice, SMS and has built-in support system for mobile banking. This revolutionary product is again targeted at the “Bottom of the Pyramid” just like the many nano products being launched by the TATAs. Initially this mobile will be launched in India, Turkey and eight African countries. An advanced version is also launched simultaneously for $20 with color screen and an FM.
This strategy of Vodafone will help them play with volumes rather than margins. This product has the capability to help mobile phones penetrate to the remotest of places and hence contribute in their development.

Rogues

Toyota’s calls and recalls

February 14th, 2010

Cause of Toyota recalls

Global automobile giants like Toyota and Honda created a furor among their customers by announcing massive car recalls. Toyota plans to recall more than eight million vehicles while Honda has to recall more than one million. Toyota says that the drivers of these vehicles have reported unintended acceleration of their vehicles which is caused by the improper design of the pedal and the floor mat. Honda vehicles are facing problems with airbags and a switch which could cause fire. To rectify these defects a massive reverse logistic exercise will cost them millions of Dollars.
» Read more: Toyota’s calls and recalls

Chicken fight or trade war?

February 6th, 2010

In an answer to US imposing restrictions to import of Chinese tires, China has imposed anti-dumping duties of around 100% on imports of broiler chicken from US. China is the biggest importer of chicken products from US and with this move the American companies would be hit hard. In 2008 China imported more than 500 thousand tonnes of chicken products from US alone.
This may be an indication of a trade war between the two superpowers of the world. Earlier China also questioned US on its support to Taiwan by supplying arms. US has also levied anti-dumping duties on drilling pipes, wire decking and electric blankets imported from China. China being the manufacturing hub of the world seems to be facing the toughest times of the recent financial crisis.

Rogues

Is IPad a threat to the conventional PC market?

January 31st, 2010
Apple's Strategy

Apple's Strategy

Steve Jobs is known for creating revolutionary products and launching them like a box office thriller. The movie producers should learn a few tips from him! The launch of IPhone marked a new milestone in the history of tech products. Now, it is the time for IPad. What is IPad? In the last few years, the world has seen that the technological gap between a phone and a computer is reducing. Earlier people were satisfied with a basic phone which can be used to communicate only. Gradually the products’ expected features like internet, WAP and data processing abilities crept into the basic features. However, mobile manufacturers could not break the ice to think further, which Apple has done. Apple is trying to create a new segment where people want a multipurpose mobile device through which all basic needs of a mobile and a computer can be experienced with ease. IPhone implemented this unique ‘Filling the Gap’ strategy successfully. It seems that Apple has made this ‘Filling the Gap’ strategy it’s unique selling proposition. Is it sustainable? The sustainability of a strategy depends on the entry barrier for competitors. If the entry barrier is low then apart from the first mover advantage, Apple will have nothing. It will not be able to milk this newly created segment for a long time. One feature which is valuable about this product is that more than one lakh applets can be accessed through this device. These features are currently used in Iphones and IPad is compatible with it. So, the product is different but the features are developed on a common platform which can be used only on Apple products. It reminds me of the era when Apple tried to rule the market with Macs which could use only Apple’s applications and software. This strategy of Apple decades ago, did not last much because the competitors could sniff it and Microsoft and IBM reaped the benefits. Is it that this time the competitors are not aware or Apple has done its homework well enough. Apple has penetrated deep enough in most of the developed markets with its platform featured products IPhone, iTouch and IPod. Gradually they are moving back towards the PC in terms of features. WOW! Steve Jobs seems to implement his old strategy well enough to reach the levels of Microsoft with huge strategic advantages. Analysts say that IPad will not be able to replace the PC/Laptop market but you do not know what Apple is all for. It will not be surprising if Steve introduces an iPC which will run on the same platform used for iPod, iPhone and iPad.

Rogues

Also read :

Best gadgets of the decade – best of last 10 years

11 reasons Why not to buy iPhone in India
Google Nexus One Vs iPhone – The review