Posts Tagged ‘strategy’

Microsoft XP to be obsolete soon!

March 10th, 2010

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components of hard drive

components of hard drive

Hard Drives will soon be available in a new format which might not run with XP. Currently the drives are manufactured in 512 bytes format which will be replaced by the 4k bytes format. The 512 byte format has reached saturation levels. i.e. it is becoming difficult to reduce its size further. Whereas 4k byte format has scope to reduce the size and increase efficiency simultaneously.
Experts in a discussion said that the industry has agreed to phase out the old formats by 2011. Except XP all other new operating systems are likely to support this new format. Some say that this new drive will still be compatible to XP but the data transfer speed might suffer.
I was trying to figure out why this 4k and not more or not less. Is this an incremental innovation strategy to milk the customers or is it the best solution? This move by the hardware industry might reduce the life cycle of technological products further.

Rogues

Turbulence in automobile industry..

March 9th, 2010

turbulence

turbulence


After the season of recalls, it is now time for the major players to reshuffle their stakes. The reason may be the unpredicted growth in automobile sales all over the world in the month of February. The recovery of JLR sales have increased the SPI of TATA Motors which in turn triggered Daimler to sell its 5.34% stake. Daimler, also plans to enter India by investing more than Rs.4000 crores for which it had collaborated with Hero Honda. However, the deal was called off. Now, after raising cash from stake sale at TATA, Daimler might strategically enter India and other developing nations.
In another move, Suzuki has raised its stake in Maruti-Suzuki to 55%, up 0.8%. Analysts say that Suzuki might go for further increase in stake in near future. Maruti, which sells every second car in India, has established itself as the crown jewel in Suzuki’s global operations and is a rare bright spot for sales across the world. It already contributes nearly 80% of Suzuki’s profits, and in volumes too, it has eclipsed its parent’s tally. So it is wise for Suzuki to leverage on this rare asset.
As the small car market is heating up, every major motor company is planning to launch small cars, whether they have experience or not. Ford for the first time, has launched a small car ‘Figo’ targeted at middle class people of India. Honda has also launched ‘Jazz’, a small car, but at a higher price(Rs.7.21 lakh) to target the niche market by making it a limited edition car. Except Toyota every car company plans to launch new products in recent months.
These big news in the automobile market in just a month calls for an in depth analysis by investors and consumers before taking major decisions. Is it a consolidation phase, where first movers might end up as market leaders or is it time to en cash on the growing automobile industry?

Rogues

Underdog of F1

March 9th, 2010

underdog

underdog


Formula one will soon experience the unbeatable strategies of the greatest underdog of business world. Yes, it is Sir Richard Branson! He through his team Virgin Racing has developed a car with best aerodynamics created in half the cost of other competitors. Traditionally, teams used to test physical cars in wind tunnels, whereas Virgin has used computational fluid dynamics to cut through the expenses. His newly hired team of 200 designers have done it. Richard Branson known for his underdog approach to compete with British Airways, NASA spaceships and many more, will change the F of F1 to finance. His objective is to become the best team with minimum investment. Earlier top teams like Ferrari and McLaren used to make money from money but now he has brought in the innovative element. It seems like formula one will become the next big thing in sports! Whether he can sustain this by continuously innovating is the next question?

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

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

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

Blood bath @ telecom sector

January 10th, 2010

Every time a new player enters the Indian telecom industry, the profitability of all the existing players take a dip. It happened in 2001, 2004 and 2009. Why does it happen?
paisa pricing
When the world is fighting to reinvent the Dollars, Rupees and Yens Indian telecom sector has reinvented the Paisa!
» Read more: Blood bath @ telecom sector

Best way to go for ERP!

December 7th, 2009

Enterprise Resource Planning or better known as ERP has been the key IT Buzz since a decade now.Today every big company either has it or aspires to buy it. Why not? It is such a wonderful system that pressurizes the organization to adopt the benchmarked business processes. SAP being the leader in providing ERP packages, has gone through the entire business cycle and has developed key innovations. Considering » Read more: Best way to go for ERP!

Artificial Wings: Exploring the developing nations

October 18th, 2009

The airline industry of the two largest developing nations of the world are high on artificial wings. When the world is experiencing the aftermath of the global financial meltdown, China seems to rake in moolah from the airline industry. China has more than 1200 aircraft owned by the airlines and is expected to cross the 1500 mark by 2010. The airline industry in India is expanding steadily but the strategies adopted by the airlines and the government are hitting their bottom line. However, the Chinese airlines supported by the government has ensured more than $ 1 billion in profits for the first nine months of 2009-10. » Read more: Artificial Wings: Exploring the developing nations

Series 3: Where is China heading?

October 6th, 2009

China has attracted $853 billion FDI in last 30 years, which is the highest among the emerging nations. China’s manufacturing industry ranks 4th in the world. More than 50% of china’s fiscal revenues come from this sector. Most of the PCs and Laptops manufactured in the world are from China.

what is manufacturing?

It is value addition to the various raw materials like ores, chemicals, wood etc. Mechanical and chemical operaions like segregation, reaction and size reduction are some of the important operaitions which add value to raw materials. » Read more: Series 3: Where is China heading?