Category: Strategy

Strategy

What ails the airline industry?

I am always fascinated and surprised by the fact that the most of the airlines in the world are operating under losses. This baffles me due to the following facts: There number of people flying is increasing by the day. The cost of new entrants is very high à Existing players have an opportunity to charge a healthy margin. One reason that many argue is that the input cost (cost of aircraft, fuel, airport usage charges, maintenance of the aircraft, salaries, etc) is spiraling upwards and the fare is dropping due to intense competition. Though the above argument is true, […]

Strategy

Digital + physical publishing model = Improved profitability for publishers

I am surprised to see that the Kindle versions of regular books cost almost the same as the physical copies. I am really surprised about this because, with Kindle versions, the publishers do not incur any printing, distribution and inventory costs. These books should be selling at a much lower price than their physical counterparts. The reason I feel this is not happening right now is that the publishers fear that the sale of the physical copies will decline sharply if they make the kindle versions available for much lower prices. This is the classic mentality of clinging on to […]

Strategy

Nokia To Cut 4,000 Jobs Worldwide, Transfer 3,000 Symbian Jobs To Accenture

Today, Nokia announced that it will cut its global workforce by 4000 by end of 2012 and transfer 3000 Symbian jobs to Accenture. Something on these lines was expected since Nokia signed a deal with Microsoft to use Windows Mobile 7 platform for its phones. In my blog yesterday, I had indicated that the high end mobile phone vendors were competing on the OS level and today, Nokia has announced that they will not fight the war on OS and will rather partner with Microsoft. This does not go well for Nokia. Though, I can understand the circumstances, under which […]

Strategy

Long tail of Choice – War of the phones

Last week, Intex launched a mobile phone for the visually impaired. The phone has features like Braille on the keypad, voice dialing, big keys, emergency sms key, hearing aids (including a torch light!). This after a launch of a series of such phones targeting niche segments like phones for the elderly, phones with insanely long battery life, phones with a projector.  As Seth Godin talks in his blog and I quote             “The mass market is being replaced by multiple micro markets and the long tail of choice.” All these are products being offered by small players in the market […]