If you have to ask you'll never know ! [L.Armstrong]... thats Louis not Lance.

Oct 14, 2008

What they did'nt teach you at Harvard Business school.

Case Study 1: Go to the Mcdonalds on Linking road. On any given day there is a slew of entrepreneurs mobilizing their various businesses on the pavement. While far away Laxmi Mittal is busy buying a steel plant in Romania to make steel for the US market, Rajuhad bought maps. Maps that he now offers for sale. Maps that are printed in China. That have a long shelf life. That are easy to transport. [ In their rolled up form. ] That have bright colours to help them stand out from any goods his competitors may have on sale. That have a market that goes from eager school children with not so eager parents, to eager parents with not so eager school children and every one in between. Including various visitors to Mumbai in colors ranging from the blackest black to the whitest white. His marketing division works at discounts quickly. One for Rs.50. Two for Rs.75. Three for Rs. 100. The base price is determined by what he thinks the market can support. So the one for Rs.50 might a few minutes down the line be one for Rs.60. and two for Rs.80. He's quickly gone from Good to Great. From old badly printed maps that triple folded right over the equator to roll up laminated maps. With plastic tube reinforcers at either end.
The boundaries of his SEZ keep moving. In direct relation to the muncipality van from who he tries to maintain a uniform out of sight distance. The sub prime crises is the last thing on his mind. Why ? Because of unflichingly following a COD policy. No, 90 days, no 60 days. Not even 60 seconds. So cash flow is never going to be a problem for him.
He goes right to his cutomers doorstep. As they step out from their newly accquired Maruti Swifts and Octavia Skodas. While Laxmi Mittal is slowly shifting sales out of the US and towards China because of the slowdown in the US economy. Raju moves his buisness to the other side of Linking road when the parking timing changes. 9am to 5 pm parking on the eastern side. 5pm - 9 pm parking on the western side while the east is out of bounds.
He's hedged his bets on the Map of India. Kashmir , { Pakistan occupied } it says in fine print. As far as Raju is concerned The World is Flat.
A sale he knows, is made before the customer even suspects it. His antennae is fine tuned. Not wasting a minute on someone who he knows will never feel the need for a map. While going for the jugular with someone in whom there's the littlest flicker of interest.
He does'nt want to sell his Ferrari yet. Ok . His Hero cycle with the carrier attached for localised transportation of his goods. But he will one day, when he's won enough friends and influenced enough people.
Thats when he'll get the Rolls. Ok . Hero Honda motorcycle.