‘You have to adjust quickly’ by John Donahoe, President & CEO of eBay
1) eBay is greatly hit by recession in 2008 resulting 81% decrease in market share. But it is continuously recovering by two decisions:
a) Selling off 70 per cent in Internet telephony company Skype.
b) A shift to more fixed-rate sales against auction-led.
2) eBaycart.com, PaisaPay.com (online payments) and money-back guarantee are successful in India.
3) Both fixed rate & sell-well are successful in India.
4) Paisapay is successful in India because:
(a) Helps creating in Buyer’s trust.
(b) Does not offer the kind of anonymity (related to bank account details)
(c) Helps to comply with local regulatory authorities.
5) Globally, the ratio of fixed-rate to auction-led sales is 60:40. In India, it is 80:20 because
a) Fixed rate empowers the customers for comparing the prices e.g. for mobile purchasing.
6) At present, 35 per cent of eBay revenues come from PayPal. By 2012, it will be 40 per cent which is a good sign for eBay that it s growing well in India.
“Matrix is our Slingshot” by Robert Coury, Chairman & CEO Mylan.
1) Acquisitions proved to be a boon to Mylan, world’s 3rd largest generics company & US’s largest.
2) Purchase of Hyderabad based Matrix laboratories gives Mylan a strong Indian process development & manufacturing base.
3) Purchase of German based Merck Generics expanded Mylan’s global footprint.
4) How to expand the product line, the best answer to this is Mergers & Acquisitions.
5) As the government & Generic Industry pricing continued to be pressured, the only way to get out of this problem is lowering off your cost by setting up the manufacturing base in other country providing lower costs.
6) Acquisition is not the only answer to success but there is a need to understand the regulatory and the manufacturing process.
7) Use the synergies of employees of both (Mylan & Matrix), rather than firing them.
8) M&As are prevalent in India but the need of Mylan is to get a strong base in India to serve the whole world.
9) Striving for the operational excellence will make a firm number 1.
10) Stepping up of oversight in India by Regulators is healthy but need to do a little more.
All pharma companies in India need to step up their own internal good quality & GMP (good manufacturing practices).
Return to Protectionism
1) Going on the footsteps of Ohio Governor Ted Strickland, President of US Barack Obama cleared his intentions of reducing unemployment by
a) Extending tax breaks to those US companies who create jobs in home soils & not overseas.
2) Going to prove a hard blow to Indian outsourcing sector.
3) In 2008, around 0.7 million people employed in the outsourcing sector in India.
4) Annual revenues of $11 billion, around 1 per cent of GDP, come from these activities.
5) It is estimated that 60 per cent of Indian exports in the IT sector are to the US. In other words, a substantial portion of India’s outsourcing industry is dependent on the US.
6) A “discriminatory trade barrier” as quoted by NASSCOM, Indian economy is going to be affected by this.
7) But US firms need to do outsourcing, as cost structures in US are very high.
8) So, protectionism in US will definitely affect India.
9) Also countries such as China, Mexico and Vietnam are also expanding outsourcing operations and often provide cheaper services which are going to prove threat for Indian outsourcing sector.
The Life after Separation by Vishal Krishna.
How Hero & Honda will settle their divorce from Hero-Honda.
1) Honda Motorcycle and Scooter India have already built up its distribution strength of 400 outlets in India
2) & its sales have risen by 37 per cent as of April-September 2010.
3) Hero will have to come up with a product spec on its own if it is going to compete with original equipment manufacturer such as Bajaj and TVS.
4) Hero Honda is the market leader with sales of over 2 million vehicles in the first half of this fiscal and 48 per cent share.
5) Honda manages a small 15 per cent share, but is growing.
6) Honda needs more investment to penetrate into smaller towns and rural areas.
7) Lower displacement vehicles are the need to penetrate this segment.
8) Honda may vie for this brand equity, and will possibly piggy back on Hero’s large distribution reach of 2,200 outlets.
9) Honda would want to go on its own because the 9.3-million two-wheeler market will grow to 16 million by 2015.
10) Honda can go on its own without Hero in India now as
a) It has a strong dealership network.
b) Using large 2200 outlets network of Hero.
c) Building a strong goodwill in market.
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