When companies discover that low-price c
ustomer segment is large, they oft en set up low-cost ventures themselves. Because of their years of industry experience as well as abundant resources, incumbents are oft en seduced into believing that they can easily replicate cut-price operations. In the 1990s, for instance, all major airlines launched no-frills second carriers which have since been shut down or sold off , showing how tough it is. Companies should set up low-cost operations only if there are very strong synergies. For example, in the financial services industry, HSBC, ING, Merrill Lynch and Royal Bank of Scotland have set up low-cost operations in the form of First Direct, ING Direct, ML Direct, and Direct Line Insurance, respectively.
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Source : IIPM Editorial, 2006
An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative
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IIPM RANKED AHEAD OF FIVE OF THE IIMS
ustomer segment is large, they oft en set up low-cost ventures themselves. Because of their years of industry experience as well as abundant resources, incumbents are oft en seduced into believing that they can easily replicate cut-price operations. In the 1990s, for instance, all major airlines launched no-frills second carriers which have since been shut down or sold off , showing how tough it is. Companies should set up low-cost operations only if there are very strong synergies. For example, in the financial services industry, HSBC, ING, Merrill Lynch and Royal Bank of Scotland have set up low-cost operations in the form of First Direct, ING Direct, ML Direct, and Direct Line Insurance, respectively.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative
More IIPM-News:-
IIPM RANKED AHEAD OF FIVE OF THE IIMS
Susan Decker, Yahoo’s Chief Financial Officer and VP (finance & administration) to join its Board of Directors. She will be replacing John Browne, who is retiring from the board after serving as an Intel Director since 1997. During her 14-year career she has worked with Donaldson, Lufk in & Jenrette. Meanwhile the world’s largest chipmaker has announced a rise of 11.25 cents per share in its quarterly dividend, which will be effective from the first quarter of 2007. So far Intel has paid around $8 billion as cash dividend and this year alone its cash dividend will amount to $2.3 billion.
countries in the past four months. Relations between the two countries had turned cold during past five years because of Koizumi’s visits to Shinto shrine where convicted war criminals are honoured. China sees it as lack of remorse for its brutal occupation of much of China during the early 20th century. Though the new prime minister has dropped hints that his policies may not deviate too much from his predecessor, Junichiro Koizumi’s. He wants to build a stronger Japan which distances itself from the post-World War II guilt by amending the Constitution. Japan is in a precarious situation. China is threatening Taiwan. North Korea is testing missiles. It is thus, imperative for Japan to set up its own defence mechanism.
Asset Management (India) Pvt Ltd: “We believe that the growth story of India is intact and a GDP growth of 7-8% is quite achievable.” The Sensex closed the week ended September 22 on 12,236 only, 376 points away from its previous all time high of 12,612. The downturn in May saw the Sensex crash to a low of 8,929, putting an end to its marathon bull run. But things have improved since then and the Sensex has recovered by almost 37% from the lowest point of the May downturn. Definitely, markets are recovering from the mayhem of May and the mood seems to be perfectly set for bulls to stretch the limits once again. Of course, one can never say with any certainty that the upswing in Dalal Street is a durable phenomenon.
The import basket largely comprises of machinery, food products, crude oil, textile products and footwear. Being a member of EU and a Scandinavian country, most of Swedish trade is with other EU and Scandinavian nations, with US, UK, Germany, Netherlands & Denmark being the main trading partners. In the second quarter of 2006, Germany displaced US, becoming the top trading partner of Sweden. In 2005, the Swedish manufacturing sector accounted for 18% of GDP, while the private service sector for 45%. Swedish industry exports almost half of the goods manufactured and portrays a huge breadth in terms of production and international operations.
According to Jayant Pai, Vice President, Parag Parikh Financial Advisory Services Limited, “There may even be other parties working behind the scenes instigating the two. I do not foresee them working as a team in immediate future.” In fact, cynics see this controversy as a masterstroke by elder brother Mukesh to race ahead of Anil. With Reliance Retail rolling out soon, Mukesh will soon control a Rs.2,000 billion empire. If Anil’s ‘power’ dreams are stymied by gas, or the lack of it, he will find it extremely tough to play catch up. Is that the reason why the Anil camp is visibly bitter while the Mukesh camp is chilled out? 
of how unaccountable bureaucrats are determined to persist in their self image of being public masters rather than public servants. There is another more dangerous move. The government plans to table a new Bill in the Parliament that will allow a District Magistrate to shut down the operations of any television news channel. Most analysts had hoped that this kind of intolerant, paternalistic, authoritarian and mai baap government was surely history. Or is history repeating itself with a once upon a time champion of reforms Manmohan Singh being forced to become a reluctant Santa Claus?
