How giant companies fail with time. #business #money

Category – Business

Reading time – 5 minutes

A company starts as a little bud. Hopeful and energetic. Then it grows and adds layers of flab over itself. Then it looses it’s dream and it slowly looses out to itself.

Biggest enemy of a big company is the big company itself.

Various things that can go wrong are tubulated in this blog.

1. Deviation from brand mission

A brand gives immediate signal to customers about what to expect. A car rental can expand to fleet management business and it is good for its clients.

But if food snack brand like Cheetos starts selling lip balm or colgate tries selling utensils or motorbike starts selling perfumes it contradicts with their brand image.

2. Inability to attract top telent

Top talent wants innovative and free environment to thrive.

3. Getting complacent

As quaterly profits soar, company employees and CEOs get complacent. Company looses hunger to satisfy customers demands at the level they had done earlier.

4. Short term game mindset

They engage in shortcuts to create stellar quaterly results. Aquisitions. Hostile takeovers. Stock buybacks. Cost cutting in R and D. This all leads to slow decline in their brand value.

5. No differentiated products

As companies get fatter they sit and copy others in the marketplace. They lack ‘wow factor’ ; in their offerings. Copycat companies then engage in price war that sends them to mat.

US auto Industry was astonished by Japanese auto makers.

6. Ego

They fail to see advantages in partnerships with smaller firms. This leads to missed opportunities and leverage points.

So when a startup is small and has fire in its belly; it keeps marching and adjusting very fast before growing up into a lazy big giant.

That’s how big companies fall.

#jimcollins #simonsinek #thaler

No win is final in current economy – Domino’s pizza #business #money

Category – Business and money

Reading Time – 2 minutes

We all eat pizza all the time. In good times and also in the bad times. When she doesn’t want to cook or you don’t want to cook yourself.

Pizza Hut was found in Michigan in 1958 and Domino’s in Michigan in 1960.

They slowly gained customer base with regular innovations and efforts.

In 2010s Domino’s invested heavily in digital infrastructure and slowly overtook pizza hut in terms of revenues.

It invested in digital media for ordering and delivering it’s pizza. It used data gathered this way to its advantage. It gathered ideas from customer feedbacks. It made its digital data driven network.

It won the battle from pizza hut and little outlets.

But then came new startups.

Last mile meal delivery apps.

Ubereats. Zomato. Swiggy. Doordash.

They delivered all types of food that may be ordered daily; as compared to pizza which is eaten once in a while.

And whoosh there is a new battle at the hands.

Hence companies have to adapt continuosly to emerging rapid competition.

They should try to prepare vertically integrated digital data network that benefits from client’s data with time. And hope to become one of the two main competitors in a particular segment of business.

Inspiration – Everybody wants to rule the world by R Wang.

Duopolies in economy – inequality in #capitalism #business #money

Category – Business

Reading time – Two minutes

Duopoly in business means that in every business sector; there are two dominant companies who share majority of the revenues.

One is leader with 60-70% marketshare.

Second is a company with 25-30% share.

All other players fight for remaining 20-25% share.

Internet search market has Google and Baidu.

Social media has Facebook and Twitter.

Software App market has Apple and Google.

Retail has Amazon and flipkart.

MasterCard and Visa.

Boeing and Airbus.

Coke and Pepsi.

This pattern seems to emerge in every market.

This is due to winner take it all mechanism that works to slowly focus earnings in one or two bigger pots.

This however may be counterproductive for economy as a whole and for average customer. With time big companies get extremely strong and excercise great control over their earning margins and bargaining power of customers falls.

Here policy makers need to step in to stop unfair practices that sprout as power of giant the companies rise.

How apple app store deals less; but earns more than #googleplay appstore #appleappstore

Category – Business

Reading time – 2 minutes

Mobile app market is huge. It will be around 400 billion by year 2025.

Android platform is dominant in operating systems; as it has six times the market share as compared to Apple OS.

It is 85% as compared to Apple’s share of 15%. Apple dominates in revenue by scale of two to one.

Revenue generated by Apple is almost double; because it monetises it’s app store better.

Apple attracts top developers and it also attracts more customers; who actually pay for purchasing apps.

On Apple’s platforms developers get more output for their efforts.

It is free from irritating Ads. It compensates developers. Resulting great apps also make their premium customers happy.

That’s is why it has more revenue as compared to google play which has apps full of irritating advertisements.

So friends; there are both ways to succeed.

Go cheap and go for scale.

Go elite and serve people who value quality.

#apple #appstore

Terms that measure risks of your investments. #personalfinance #investing

Category – money and business

Reading time – 2 minutes

When ever you invest your hard earned money or even inherited money or any money for that matter, there is always some risk.

It may decrease or even evaporate or atleast returns may be lower than expected.

Inflation may kill returns or taxes may eat it away.

Covid like uncertainty might hit your money.

Than what to do. There is not much that can be predicted by human beings. They may claim credit for random guesses but future is not open for speculations.

So, you may use surrogate markers of risk and calm your nerves a bit into thin blanket of mathematics.

Here are three terms you may hear accidentally from financial experts.

1. Standard deviation – This shows amount of expected volatility.

It shows amount of fluctuations possible in an investment from mean value. More standard deviation indicates wide fluctuations are possible,so keep your belts tight.

2. Beta – Risk of your investments in comparison to the market as a whole.

It compares investment to market index like nifty or sensex.

Beta 1 means investment will move in sync with standard index. Higher the beta, more volatility is expected.

3. Alpha – It is extra earnings in percentage of an investment in comparison to a benchmark index.

For example if sensex returns 10% Durning a period and your investments return 12%. Hence your alfa is 2% ( 12-10).

So next time you read this words in a newspaper or blog then you would know what these mean.

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Inspiration – Financial blogs

10/10 law #innovation #newtech #economic science

Category – Technology and science

Reading time – 5 minutes

Slow path of acceptance

We humans are slow. We have infinite inertia. We would lie on the spot; if somebody put food plate on our belly and switched on the television.

We hardly like to change.

When scientists make a new discovery, they jump in their trousers and envision world changing due to their discovery.

But with time, they see ignorant human beings around them, munching on their oily burgers.

How they can’t see the revolution.

Scientists grow old, their skin wrinkles, eyes give away in the hope of seeing their discovery reach the masses and few even go away into oblivion, before people realise that some great thing is here.

It applies to all the technologies. Generally a technology is slow to be adapted by massess.

It takes generally 10 years to build a new platform or idea and another 10 years to its reach into mass audience.

For example first colour tv broadcast was done in 1954, but it reached prime time in 1965.

HDTV took 10 years to reach from first signal to mass audience.

AM radio took 10 years to reach masses.

But this speed was speed of the 20 th century.

Now, technology progress seems to be speeding up. Facebook, YouTube, wtsapp took lesser time to reach masses.

So did instagram and paytm.

So did phonepe, Zomato and grocers.

As technology and it’s adoption rate are both speeding up; it remains a mystery that when will this speed stabalise or we are going to be more and more entropic race.

Inspiration – The design of everyday things by Don Norman

#technology #science #evolution

Nirma story #succes #nirma #business

Category – Business

Reading time – 2 minutes

Mr Karda bhai patel worked as chemist in office of Gujrat government in west Indian corner.

He was stuck with an idea to manufacture detergent powder in his backyard and he started selling it in his area.

He did this after his office hours.

He used low pricing to attract cost conscious Indian customers.

People liked it for its quality and low cost. Encouragement led to resignation from job. He set up his small workshop in Ahemdabad.

He slowly captured market in Gujarat and Maharashtra. Then he spread all over the country.

Today Nirma group is a mammoth working in diverse areas like medicines, soaps, detergents, salts and lab products.

Everything starts small.

Everything takes time.

Everything needs to expand, adapt and change with time.

Everything like this is inspirational.

#business #growth #enterpraneur

All growth and innovation happen here – The adjacent possible. #ideas #innovation

Category – business and money

Reading time – 5 minutes

Adjacent possible was coined by scientist Stuart Kaufman.

It includes all the things possible; just next to what we have already achieved in a technology or idea.

For example man picked up stones to break nuts. Next possible change it saw was that heavy stones work better.

Then man found that sharp stones work better. Then, stones that fit between thumb and finger work better.

Then, man found that stones tied to a stick produce greater force.

Then, he found metals and made tools with metals. Then, he inserted batteries in tools like drills.

Each discovery led to next possible discovery.

And exploring next possible thing slowly, man reached present time of nuclear weapons, with which he can terminate his eternal stupidity and greed.

So one development in a technology opens doir to next possible improvement or addition, which is a slow process happening by contribution of multiple brains.

Adjacent possible is next possible improvement in present idea or technology.

It is not infinite.

It presents infinite possibilities out of which few are useful or meaningful.

It is slow and continuous.

Its boundaries grow as new possibilities are added or arise.

It applies to living beings and non-living things too.

Initially computers were text only medium. Then possibilities kept adding on to it and now you can post your photo or thoughts at the flick of your thumb, which similar sapiens all over the globe can see.

Hence, whenever you work with your ideas keep an eye on what is the next possible valuable addition to this idea.

That’s where next big thing resides.

Also keep searching your adjacent possible. You were not same in the past and you will also change in future. Keep jumping into adjacent possible of yourself and keep improving like all technologies do with time.

Inspiration – Where good Ideas come from.

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Communism is must for capitalism survival! #communism #capitalism

Category – business and money

Reading time – 5 minutes

Right from the time, when we wriggled out of the sea water and started infiltrating all over this planet; we always needed fiction to survive.

We needed myths like Gods, states and religion.

Man needed stories to stick to. We needed groups to be part of and we needed feeling of, “us and them” to feel purpose in our life.

Then ideologies corrupted our minds. Some followed communism; which raised right questions but provided few solutions.

Few followed capitalism; that solved many problems but gave birth to extreme inequality and ecological disturbance.

Communism still holds firm in many countries; especially in Eastern parts of the globe.

Communism is basically,” from each according to his ability and to each according to his needs.”

In this all property is owned by the community and each person contributes and receives according to his ability and needs.

Communism is still deeply ingrained inside every inch of capitalism and we don’t even observe it.

It is necessary for capitalism to flourish and spread.

In the house joint family members share their possessions with each other. They earn them by capitlistic market and then put to use based on communist principles.

When we get out of house; we ask strangers for directions free of cost. We may get shelter under strangers umbrella. Somebody may tell you that you forgot to remove stand of your bike, without charging money.

In office, your senior colleague may answer your queries or act as a mentor free of cost.

Now see Facebook and Instagram. How much money they would earn if people didn’t share their pictures and art free of cost.

Would Amazon feel the same, if reviewers didn’t post product reviews for free on it.

So, capitalism may boast of anything but it is nothing without this daily communism.


Elinor Ostrom took this idea to her heart and studied how humans can judiciously share common resources without need of a state or autocracy to intervene.

This concept of commons need to reach more people and should be recognised for its vital role.

Her studies got Elinor Ostrom; Nobel prize in 2009 but still capitalism with its bright lights is outshining the garden of commons.

Inspiration – Humankind by Rutger Bregman

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Why refugees use boats? #immigrants #europe

Category – business and money

Reading time – 3 minutes

This story is taken from the book, factfullness.

It is eye-opening write-up. It tells us that; even if intentions are good and legislation in place, still beneficiary may be deprived of a benefit due to misinterpretation of things and complexities of a process.

In year 2015, as people tried to flee to better lands amongst middle eastern Syrin war. As many as 4000 refugees drowned in meditarranean sea; as they tried to cross it with inflatable boats.

They paid loafty money to mediators and found themselves with their families; in the middle of no where.

This happened in spite of Geneva convention aggrement; which enables refugees from Syria to seek asylum in Europe.

But, when people tried to reach airports they faced effects of anti illegal immigrants directive, which was designed to stop illegal immigrants. This directive required airlines company to ship back illegal immigrant for free.

Hence, on airport counter every asylum seeker was seen as illegal immigrant. Hence Geneva convention failed to help them due unclear and complex process.

Why didn’t they use good boats.

Because, there is EU policy to confiscate illegal boats. Hence, if people used boats they will be captured and gone

Hence, desperate people used inflatable boats which are very unstable and risky.

Hence inspite of remedy (permission of asylum under Geneva convention); it was really hard for refugees to reach Europe to seek asylum.

Inspiration – Factfullness by Hans Rosling

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