by vivekpahwa on March 24, 2009
in Business
EDIT: I would like to introduce Vivek Pahwa. Vivek is the Founder and CEO of Accentium Web, an Indian Internet Media company. Accentium has set up and runs various successful websites like SecondShaadi.com, Gaadi.com, StudyNation.com and Taaza.com. Accentium also set up and then sold DesiMartini.com, an Indian social network, to the HT Media Group. Vivek will be contributing ideas and advice on the internet space in India.
–
There are a lot of people who are attracted to the Internet as a good start-up oppurtunity for a number of reasons - It has relatively low barriers to entry, setting up a basic site does not take a lot of money, it’s an exciting newish medium to be part of, and there are lot’s of big brands that are online businesses, which attract many people.
Because of some of these reasons, there is a tendency to think that starting and running a successful internet business is relatively “easy” - However, there is no free lunch out there - Starting an internet business has as many challenges, if not more, compared to a regular offline business. The reason is that setting up a website is only the first step, even getting (or buying) traffic is relatively accesible - however, converting the traffic into rupees takes a lot of innovation and trial and error. Also, because of the low barriers to entry, there tends to be a lot more competition, hence it becomes harder to differentiate yourself. There is a big learning curve in this industry, even after years, we still learn new things every day, and gaining that knowledge gives us a real advantage more and more as we go along. Now, if you’re an early mover in a new concept which solves a real need, you have a great shot to build a good business, if you execute well - But chances are, going in, you will have no idea how to generate the all important revenue to build a successful company. Hence, you’re going to have to experiment with multiple revenue models, some of which will be very successful, and some will fall flat, and most would not be viable. This is also a reason, Internet start-ups can lose a lot of money in the beginning.
There are very few pure play highly successful internet businesses in India - Most of the big ones tend to be a mix of online and offline - The offline component is usually sales, where there is a physical transaction. Hence, running a purely online “clean” business may not always be possible - at some point, the business would have to get it’s hand dirty and go “offline”.
So what are some of the revenue models out there online? All models can be broken down into four -
- Advertising
- Lead Generation
- Subscription
- E-Commerce
[click to continue reading…]
by karan on February 4, 2009
in Business
Bharti Airtel Limited (the holding company for the Airtel brand and service) is one of India’s 5 largest companies by market value (the actual rank goes up and down a bit everyday depending on the stock price). Airtel is also a relatively new company (started in the mid-nineties in its current avatar). It was also not always the huge success it has turned out to be. Sunil Mittal, founder and Chairman of the company, has stated in many an interview that for a number of critical years, the company was paradoxically on the cusp of both bankruptcy and great success. Through a combination of business sense, sheer hours and of course, luck, it fell on the right side of the net.
Airtel today, however, is probably one of the best run companies in the world (most definitely in India). It is the largest telecom player in the country and has the advantage of both massive size and a very high-growth industry. It’s worth about $25 billion and growing fast.
The secret of its success (at least in my view) has been its model. Airtel focuses only and solely on two things - customer acqusition & servicing (retention) and business development/expansion. ALL other functions - hardware, network management, backend applications (billing etc), value added services and even telecom infrastructure - are outsourced. Airtel pioneered this in the Telecom game. It was the first to give up network management to companies like NokiaSiemens and Ericsson, IT and backend applications to IBM, billing to someone else etc. It was also the first to divest it’s hard assets, i.e. - its telecom towers - to a separate company and lease them back themselves as well as monetize surplus bandwitdh by selling to other operators. This was the ultimate act in putting the faith in the brand rather than in iron and steel.
Of course, having seen Airtel succeed with this, a number of the other operators are now trying to follow in some way or the other.
Because of this focus on the customer experience and on business development, Airtel has been not only the fastest growing but the most innovative of operators. It has realized the importance of having access to the consumer at all levels, and therefore is going from core mobile to landline internet, Digital TV (DTH) and even digital cinema (theaters). Its taking AT&T’s triple play and making it quintuple (5x)-play and more.
It is also one of the few companies that has realized the importance of value added services (VAS) early on in the game and is gearing up to provide compelling applications and content for when the explosive subscriber growth in India eventually slows (as it surely will).
Airtel is a company I greatly admire. As a disclaimer, I don’t currently hold this stock but have in the past (profitably) and plan to do so in the future. I’m pretty sure this is a great bet going forward.
Medical tourism (also called medical travel, health tourism or global health care) is a term initially coined by travel agencies and the mass media to describe the rapidly growing practice of traveling across international borders to obtain health care.
A Deloitte study forecasts that the number of people turning to “medical tourism” will increase from 750,000 to 6 million by 2010, an eightfold increase. (“Medical tourism represents a $2.1 billion business, study shows”)
There are various reasons why patients travel for treatment:
- From US -Medical tourists are seeking treatment at a quarter or sometimes even a 10th of the cost at home.
- From Canada - people discouraged by long waiting lists.
- From Great Britain - patients that can’t wait for treatment by the National Health Service (NHS). Also, a private physician is too expensive.
- Others - want to combine a tropical vacation with cosmetic surgery and/or other treatments.
- From Poorer countries - more patients are coming from poorer countries such as Bangladesh where proper treatments may not be available.
The benefits go beyond cost: (‘Medical Tourism’ Industry Grows Rapidly)
- Consumers gain from cost savings and also receive excellent care from highly qualified doctors.
- Many providers offer more personalized care i.e. a higher physician-to-patient ratio–than is commonly available in the Western world.
- Some services that are not yet approved by the U.S. Food and Drug Administration, such as certain hip replacement surgery techniques, are available overseas.
However, consumers also face risks when undergoing treatment in a foreign country:
- Follow-up is difficult when the patient returns home, and expensive care may be required if complications occur.
- Quality assessment is problematic, and the language barrier can complicate matters.
- Malpractice laws in other countries are different.
Cuba, Costa Rica, Hungary, India, Israel, Jordan, Lithuania, Malaysia and Thailand are active in promoting medical tourism. Belgium, Poland and Singapore are also entering the field.
India is considered to be the leader amongst other countries promoting medical tourism and now it is moving into a new area of “medical outsourcing”, where subcontractors provide services to the overburdened medical care systems in western countries.
India’s National Health Policy declares that treatment of foreign patients is legally an “export” and deemed “eligible for all fiscal incentives extended to export earnings.” Government and private sector studies in India estimate that medical tourism could bring between $1 billion and $2 billion US into the country by 2012. The reports estimate that medical tourism in India is growing by 30 per cent a year. (Medical Tourism India)
Today, a fact that is well known globally is that some of the best doctors in the world are Indian. The quality of health care in India has improved dramatically and the economic implications of Medical Tourism are too large to be ignored, even by the government. All these factors combined with the substantially lower costs and English-speaking population have allowed India to become the leader in Medical Tourism.
by yameer on January 30, 2009
in Trends
Manjit Bawa's Painting
If you are unaffected by the liquidity crunch, then the answer is yes. Currently, the Art market is going through a rough phase like most other markets and it will take time to stabilise.
According to an art consultant, there are a few good reasons for buying Art:
- The prices are coming close to being reasonable for the first time in several years.
- Numerous dealers & galleries are now willing to negotiate prices.
- Some investors are selling of quality works at lowered prices because of the cash crunch (also known as distress sales).
- Good artworks are likely to come up at auctions again due to distress sales.
- Both dealers & galleries are likely to focus on better quality works in order to woo the price-sensitive buyer.
“A year ago people couldn’t get enough work. They would buy two copies of everything because it seemed like money in the bank,” says Farah Siddiqui of FSCA gallery in Mumbai. “Now people are desperately trying to sell works at cost price or even lower.”
Bodhi Art, one of India’s biggest galleries, is rumored to have offered 40% reductions to clients and many of the other galleries on the international fair circuit are reported to have made reductions of at least 20%. “We are making deals like everyone else,” says Peter Nagy of New Delhi and Berlin gallery Nature Morte. “The collectors are still there but there are a lot more negotiations over prices.”
“The trend appears to be shifting somewhat from the investment aspect of art to its aesthetic or intrinsic value. It therefore appears that decorative and affordable art will do well in the interim period, but serious collectors are on the lookout for excellent works. As a buyer, for you, an ideal work of art is one that can combine the aesthetic and financial investment components”, says art consultant, Nalini Malaviya. She suggests that the best way to buy art is to zero in on the artist or the artwork through systematic research. Visiting an on going art shows and buying one that you like and one that suits your wallet is another option. Although, the one bought through systematic research would be a safer bet in the long run.
This is clearly indicative of a bear market. A sudden crash in asset (art) prices and a sudden interest in value investing. Just like in the stock market, where people have now started paying heed to PE ratios, Debt/Equity splits and quality of management, people in the art market have begun to investigate the intrinsic value and quality of what they buy.
The good news is that artists are no longer mass-producing their works. They current scenario is forcing them to once again strive for quality in their creations.
Whatever the experts may advise, this is a time in which most people are suffering from a liquidity crunch. Many opportunities to invest may come your way, however, I feel the safest place for your money is in the Bank (one that is unlikely to fail)!
Also Read:
Loading ...
