Market Share | wealthymatters

Targeting The Mass Market

July 9, 2012 1 Comment

“Don’t drop the price.It will be a race to the bottom”

“Add something else of value to the deal but don’t negotiate on price”

“Target affluent customers who pay well.”

“Go for easy spenders not bargain hunters”

“Prices signal quality”

“Target high margin businesses”etc etc

Advice of the ilk is readily dished out to entrepreneurs today. Undoubtedly such advice has its place.But is this the only way to do business successfully?Read the story below and decide for yourself. Read more of this post

Filed under Entrepreneurship Tagged with assembly line, hand crafted, Henry Ford, increase efficiency, Market Share, markets worldwide, Model T, new maekets, new markets, postaday, target mass market

Sudhir Hasija-The Upwardly Mobile Entrepreneur

June 26, 2011 24 Comments

Sudhir Hasija is the chairman of the Rs 1200 crore homegrown handset maker Karbonn Mobiles.Here is a link to the company’s website:http://www.karbonnmobiles.com/.

His story will tell you how a person with few means can get into wholesaling and then into manufacturing.So for all would- be industrialists here is his story:

55 year old Sudhir Hasija, is the son of a government clerk. He left his home in Meerut, Uttar Pradesh, after clearing his Class 10 exams. He then moved to Hyderabad where he spent three years in a machine tools company and saved around Rs 3,000. He used this money to set up a business selling TV accessories such as antennas and trolleys in Chennai. It was a difficult struggle. He would climb to the rooftops of buildings bare footed in the scorching heat to install antennas. He used to wash at railway stations and stay in low-cost lodges. However he persisted and managed to built a thriving business that he expanded across other southern cities. Read more of this post

Filed under Entrepreneurship Tagged with 3G phones, Africa, Alcatel-Lucent SA, antennas, Apple, Bangalore, cell phone, Chennai, communication device, customer need, Delhi, design house, distribution channel, distributor, dual SIM phones, emerging markets, entrepreneur, Entrepreneurship, France, grey market, handset, Hyderabad, IDBI Bank, industrialist, innovation, iPad, Jaina Group, Karbonn Mobiles, Karnataka, Latin America, long battery life, low cost tablets, machine tools, manage supply chain, manufacturing, Market Share, Meerut, Micromax, mobile phone, multinational majors, Nokia, postaday2011, Pradeep Jain, Private Equity, RandomBlog2011, rural market, Samsung Electronics, Samsung Galaxy Tab, software development facility, South Korea, start-up, Sudhir Hasija, technology, telcom market, telecommunications equipment, television maker, TV accessories, TV Trolleys, United Telelinks, urban market, Uttar Pradesh, wholesaling

Buffett’s 7 Filters

March 30, 2011 1 Comment

Anybody who has read anything about Warren Buffett knows he is superbly wealthy and has made all his money through his investment in stocks,that he is a value investor,that his favourite holding period is forever and that he loves his companies to have ‘big moats’.Following are a list of parameters that Buffett uses to evaluate companies.They are from the book ‘The Guru Investor’ by John P. Reese.Why not use these parameters to check out a company before buying its shares?

STABILITY OF EARNINGS:This can be checked by considering the earnings per share (EPS) for the past 10 years. EPS is derived from the residual profit left after payment of all expenses, taxes, depreciation, interest, preference dividends and belongs entirely to equity shareholders. A company should not have a negative EPS in the past 10 years. If the EPS is lower than that in the previous year, the dip should not be more than 45%.

DEBT TO EARNINGS RATIO: The second variable is the level of long-term debt to earnings ratio. Buffett likes conservatively financed companies. He prefers the long-term debt of a company to have been paid off from its net earnings in less than five years. This implies that the long-term debt to earnings ratio should be less than or equal to five.

RETURN ON EQUITY (ROE): The third variable measures how much money a company earns on its equity. The ratio is generally expressed as a percentage. For a company to figure on Buffett’s radar, its 10-year average ROE should be greater than or equal to 15%. Read more of this post