ETrade has established itself as one of the finest online brokers for trading options as a pioneer in the online brokerage sector. It was one of the first online brokers in the United States and it became the first online broker to provide commission-free trading on ETFs, stocks, and options trades in October 2019. This makes you wonder, how does ETrade make its money? And what is its business model?
A business model is a crucial component of every startup’s long-term success since it is what unlocks value. In some ways, creating a business model is more than just figuring out how to make money. With that in mind, let’s look at the ETrade e-trading platform’s business model.
ETrade, a financial services business located in New York, was formed in 1982 by William A. Porter and Bernard A. Newcomb. Over the years, the firm has grown to over 30 outlets across the United States, making it one of the industry’s pioneers.
ETrade/E*Trade is an electronic trading platform that allows novice and experienced traders to purchase and sell financial assets such as common stock, preferred stock, futures contracts, mutual funds, options, fixed-income investments, and exchange-traded funds.
Products and services offered by ETrade
Etrade earns money through various products and services, including a day trading platform for retail customers. Let’s take a brief look at the services that the firm provides.
Brokerage: E-zero-commission Trade’s US stock trading platform for ordinary clients is known as a brokerage account. They enable you to buy and sell equities, ETFs, mutual funds, potion, and bonds, among other things. At a low fee, you may also trade futures and options contracts, as well as bonds. Until their kid reaches the age of majority, a parent or guardian can handle a minor brokerage account.
Services for Portfolio Management: The portfolio management service is given to both individual and institutional clients. Portfolios can be handled both automatically and manually. Depending on your circumstances, you may also obtain a personally customised portfolio from a financial counsellor.
Bank account: Individuals, families, and companies may open a bank account with ETrade, which provides higher-interest savings and checking accounts. Free initial checks, online bill pay, and an ATM/debit card are all available. You may also use the free Transfer Money service, pay with your credit card online, and borrow against your investments.
Retirement services: ETrade offers retirement (IRA) accounts for tax savings, minor’s savings that an adult may handle for the benefit of a child until they reach the age of majority, and persons commencing their savings at the age of 59.5 years old.
ETrade has a long history as an online broker, and its platforms are well-known for being straightforward to use. And even though it offers many services, including news, research, and screeners, ETrade is still simple to use.
ETrend features a user-friendly interface that allows you to personalise the platforms according to how you want to connect with them.
ETrade offers three web-based/downloadable platforms and two mobile apps, making it an excellent alternative for passive investors and casual traders. To help optimise the value of deposits earned in its brokerage operation, it also offers banking products through the ETrade Bank, an FDIC-registered federal savings bank.
It joins a growing number of online brokers that have switched to commission-free stock, ETF, and options trading in October 2019.
ETrade Business Model
ETrade employs a strategy that generates revenue from payment for order flow as well as interest income earned on the free float. To generate income on customer funds, ETrade invests them in money market accounts. Margin rates levied on purchasing or shorting stocks on the business’s platform also generate revenue for the company.
ETrade charges no commissions, which begs the question: how does ETrade make money?
Margin
Clients at ETrade pay interest on money borrowed to buy stocks and on money borrowed to short stocks. For many broker-dealers, margin interest is a crucial source of revenue, and ETrade is no different. It has rates that are higher than the national average. Depending on the total amount borrowed overnight, they start at 8.95 per cent and go down.
Flow of Orders
ETrade makes the majority of its money through monetising its order flow. Customers’ buy and sell orders are sent to market makers for execution by ETrade. The company is compensated for the order flow in exchange.
When E-margin Trade’s customers borrow money to short or purchase stocks, ETrade receives interest. A transaction-fee mutual fund costs $19.99 to buy or sell at the business.
This is a standard business procedure; therefore, ETrade isn’t doing anything out of the ordinary here. ETrade sends orders to the groups to adjust for the order flow. This is also a frequent industry practice.
ETrade receives less than a cent per share on average for routing orders. That may not seem like a lot, but when you consider that there are about 300,000 trades each day, with several shares per order, it adds up.
Earnings from interest
ETrade advertises heavily on the need of filling your brokerage, bank, retirement, or PMS accounts with them since the more money you invest with them, the more interest you get. The business of ETrade is based on the interest produced by the float, which is invested by millions of customers. Offering free trading to retail investors is a fantastic way to improve their float because they are the least likely to trade actively.
Service charges
Portfolio management, retirement accounts, and other essential portfolio services are also profitable for ETrade. Fees and service charges are how they make money from these services.
The fees for portfolio management vary from $500 to $250,000, with a 0.30 per cent to 0.75 per cent cost.
ETrade charges $25 for premature withdrawals, excess contribution withdrawals, and re-characterisations in retirement accounts (changing from Roth IRA to Traditional IRA).
And, depending on the debit balance available at the time of the trade, margin trading costs range from 5.45 per cent to 8.95 per cent.
In the year 2019, ETrade generated $588 million in fees and service charges.
Commissions on mutual funds
ETrade charges $19.99 to buy or sell a transaction-fee mutual fund. It costs $49.99 to sell a no-load, no-transaction-fee fund fewer than 90 days after acquisition.
ETrade also profits from mutual fund trades through 12b-1 fees, sub-accounting fees, shareholder service costs, and marketing support payments.
Trading Commissions
Only ten to twenty per cent of the millions of traders are active. Active traders, on the other hand, trade often and in large amounts. And many of them trade futures and options, the most lucrative part of the stock market.
This 20% of active traders generate twenty times the money that they lose by providing free trading.
Fees for Futures, Options, and Bonds on ETrade
The larger the number of active traders operating in any of these categories, the higher the commissions because ETrade works with huge volumes rather than premium pricing.
This information makes you wonder if ETrade is losing money on these products. ETrade loses money on its free service. However, because over 80% of traders aren’t active in the markets, they don’t lose much money. ETrade lost $23 million in securities trading fees in 2019. The $23 million loss is well worth it for their business model, given the $421 million in trading commissions they receive from active traders.
FAQs
When was ETrade Financial Corporation founded?
ETrade Financial Corporation was founded in 1982.
Does ETrade charge commission?
ETrade does not charges commission for online US-listed stock, ETF, and options trades.
WeWork was once hailed as the fourth highest-valued startup in the world after giants like Uber. It took on to the startup world through its idea of co-working spaces, which became really popular in a very short span of time.
As its name indicates, WeWork offers office spaces for various businesses and entrepreneurs to pursue their work at a cost that is far lesser than what they would have had to spend if they were preparing a workspace from scratch.
WeWork was founded in 2010 and it was valued at $47 billion at its zenith. One of the major reasons why WeWork worked was because of the responsibilities that the business owners can leave out by renting workspaces from this start-up.
However, since the announcement of its initial public offering in August 2019 the company has received a lot of criticism. Furthermore, it also became the victim of humongous losses due to the onslaught of the coronavirus pandemic, post which it was valued at $9 billion. Following that the company postponed the IPO indefinitely and two years later in March 2021, it announced that the company is going with the merger with BoX Acquisition Corp, which is still pending, as of October 2021’s reports.
WeWork – Latest News
October 21, 2021 – WeWork will finally go public. The company is all set to list its shares in the New York Stock Exchange as soon as this week.
October 6, 2021 – WeWork India appointed Megha Agarwal as the new Head of Marketing. Furthermore, it elevated Raghuvinder Singh Pathania to the Head of Community, India, who is also the Head of Operations at WeWork India. Besides, the new role of the Head – Digital Products is handed over to Dharam Mehta.
October 1, 2021 – WeWork launches Growth Campus, which is deemed to work in line with WeWork Labs. With the help of this new initiative, WeWork plans to encourage the world of startup companies to get access to workspaces at subsidized rates.
WeWork has successfully created an image wherein they posed themselves as a technology driven startup even though their basic level rests upon real estate. It is only in the development of a particular workspace that they deploy technology and not necessarily in the ways of doing business in itself.
However, that is not how WeWork portrays itself to the world or to their investors. This is because of the fact that these days technological companies tend to receive funds rather than non-technical ones.
The valuation of the WeWork has proved this correctly. Even though it does not make any profit or have a stable cash flow it is still valued way above its counterparts, whose valuations are not even half of that of the WeWork even though they have better profit and cash flow.
Hence, the way it portrays itself has a significant role in helping the startup to gain value.
Business Model of WeWork
One of the major partners of WeWork is entrepreneurs and small business owners who want office spaces for various purposes related to their organisation at a very cheap rate. Some of these people may not even need the spaces for a long period of time.
WeWork has suitable packages for all these kinds of people. The ones who rent out space from the work need not worry about any kind of bills or maintenance or connectivity. All these are handled by WeWork in itself.
As far as business owners are concerned this in itself is a huge advantage for them. The fact that it will cost more than double of the rent that they have to pay for the work, had they had to set up a workspace like the ones offered by WeWork.
On the other hand, as far as the people who lease these work spaces to WeWork are concerned, they prefer the ways of the organisation. It is because WeWork takes large work spaces for lease for at least 10 years and then they divide them into smaller work spaces and rent it out to other businesses.
Here, the owner will always prefer entering into an agreement with one organisation for a long duration than with multiple small buyers for a short duration of time. This also means that they will be able to keep track of the transactions and focus on other businesses in a better manner. They need not worry about finding a tenant or dealing with too many agreements at the same time.
The requirements of rework and the demands of the lender matches along with the needs of small businesses. In this way all the three partners do their business smoothly in all regards.
WeWork has launched Growth Campus on October 1, 2021, with an aim to encourage the startup ecosystem. The company is starting this new initiative with an investment of around $3 million, as of the latest reports, and will extend its workspaces to budding companies and startups at highly subsidized rates.
Revenue of WeWork
How WeWork is Making Money Through Renting
Although the nuances of WeWork look sophisticated at the end of the day it is an office space renting company. Majority of its revenue comes from renting of spaces to people.
They take in real estate spaces from owners for lease and then convert them into smaller work spaces and common areas. They devise their packages in such a way that it suits all kinds of people.
Sometimes these areas are as small as per room or maybe even a floor. It can also be as large as a whole building in a prime location. Independent freelancers and workers who require office spaces with better connectivity only for a small duration find the services offered by WeWork the most advantageous.
From small businesses to big companies like OnePlus, have rented office spaces from WeWork. The rising of shared office culture was also a great advantage for WeWork and it has undoubtedly contributed to its success.
Conclusion
Over the years WeWork has been experiencing severe losses due to their carefree approach and improper planning. The only reason why WeWork continues to survive is because of its high valuation and funding that it received purely due to the way they portray themselves as a technological company.
They have also tried to expand their niche beyond work spaces. They have a very attractive state of the art architecture in spaces in prime locations which significantly adds to their value and an elite image.
WeWork can at the same time be an example for how a business should put themselves in front of others and also how not one should plan their initiatives. Their strategies and models have got a lot to learn from.
FAQ
How does WeWork make money?
WeWork generates revenue by renting office spaces to businesses and companies.
What is the valuation of WeWork?
The valuation of WeWork is $9 billion, as of October 2021.
Who is the founder of WeWork?
WeWork was founded by Adam Neumann and Miguel McKelvey in 2010.
Having trouble looking for a funding platform that will fund your creative project? Not being able to generate investors for funding? Waiting to kickstart your business but not being able to due to finance? Kickstarter, a New York-based public-benefit corporation might be the solution that you are looking for.
Kickstarter is an American company with its headquarters based in New York. Kickstarter helps creators start their projects by getting them what they need i.e. Finance. With the mission to help people who have creative projects become a reality Kickstarter has become a significant platform.
Kickstarter promises its users top-notch services along with several benefits. Being an American company, Kickstarter’s services can be availed by those countries that Kickstarter is being operated. Users must possess either a debit or a credit card.
Kickstarter is a medium to connect creative workers and investors. The campaigns done by Kickstarter aim to make imaginations or ideas into reality. Creators share their idea on the platform and communities help to fund the project.
Since its foundation in the year 2009, Kickstarter boasts when it comes to numbers. With tight competition, Kickstarter has successfully funded more than 200,000 projects so far. This might sound a small amount but it is a great achievement.
Kickstarter’s Areas Of Operation
Kickstarter has its operations in several countries. You can create a project if you are from the US, UK, Canada, Australia, New Zealand, Netherlands, Denmark, Ireland, Norway, Sweden, Germany, France, Spain, Italy, Austria, Belgium, Switzerland, Luxembourg, Hong Kong, Singapore, Mexico, Japan, Poland, Greece, and Slovenia.
However, people living in any other country apart from the above-mentioned ones can use their services and can create a project. But, Kickstarter has a strict policy of projects that can be a part of a creative project.
Kickstarter’s Services
Kickstarter’s services are not open for every type of idea. Kickstarter’s services include giving your idea a marketing platform. Anyone with a potential business idea or a creative project can get direct attention from different social media platforms.
It is the backers that back a project by funding them to help an idea become a reality. The creators in return offer certain rewards to the backers which can be a copy of what will be produced. Kickstarter is not an offline store where you can go for funding.
Kickstarter will not charge any amount until and unless the project reaches its funding goal. Once the project has been funded successfully Kickstarter charges a 5% fee on it.
Kickstarter does not have a target audience per se because anyone with a keen interest to back a project can become a part of the Kickstarter. According to Kickstarter target demographic, the audience for Kickstarter comprises 78% men and 22% women.
People who are around the age of 25-35 are the most common visitors to Kickstarter. It is the creators sharing their ideas who need the audience because they would generate funding. With the help of behavioral targeting, one can connect with real people.
These people with whom you can get connected are the ones who have supported projects like yours. The project that you have created on Kickstarter will recommend people who have backed similar projects like yours through advertisements.
Behavioral targeting is one of the most popular types of marketing for Kickstarter. So, if you have a creative idea on your mind then someone with similar interests might back you. As mentioned earlier that Kickstarter has helped more than 200,000 projects with their funding.
Most people wonder how does a crowdfunding platform earns its revenues. Crowdfunding companies work on a commission-based format where the company charges a certain amount of money from its users and some amount for the transaction.
The business model of Kickstarter is multi-sided. If you look at Kickstarter’s earning process and method then you might think that the company earns its revenues by charging certain commissions from its users.
Well, if you think that then you are correct because it charges a 5% commission on the total funds raised. The business model of Kickstarter works on two interdependent customer segments. The two segments include the creators and the backers.
Advertising done by Kickstart is mainly done through social media. Campaigns done by the company are efficient and encourages people to share about Kickstart. A creator’s project will be flooded all over social media, emails, live events, press contacts and many more by Kickstarter so that more audiences get to know about the project.
What is so unique about Kickstarter?
Kickstarter promises its users a unique experience. The company ensures a successful campaign where creators can benefit from the following things:
Getting seed capital
Can keep the stake of ownership
Early feedback on projects so that optimizing can be done
Exposure to the social environment
Kickstarter is not into funding treatment or any other such kinds of things. It takes an active part in promoting projects on categories like games, films, music, art, technology, and many more. If you are interested in any of these categories then you can use the services of Kickstarter.
How Does Kickstarter Make Money?
Kickstarter charges a 5% commission fee on the total funds raised. However, they charge a certain amount for payment gateway. The company uses this money to run its site which includes advertising and employee payment.
Kickstarter uses Amazon to collect their payment that is entered by the backers. Whenever a goal for a particular fund is met Kickstarter charges some amount of money.
Conclusion
Kickstarter’s services are one of the best and as a crowdfunding platform, you cannot expect more than your project being marketed for free. This is something that not many companies do. Well, a public-benefit company will do what they do the best and that is help people.
FAQs
What kind of industry is Kickstarter in?
Kickstarter is a crowdfunding platform that is into financial services on internet.
What are the advantages of using Kickstarter?
One can get the following benefits for using Kickstarter:
No, this is not a magic spell from Harry Potter’s world. In English we call the above phrase ‘Mitsubishi corporation’ which is equally magical as a spell. This article is a dissection of the businesses they do, their business model and the philosophy they operate with. So, take your diving suits with you and get ready.
Headquartered in Tokyo, Japan. If we dive into the articles of this company we will find that it reflects quite a clear view of their working areas. It says that the company will be involved in diversified businesses including purchase, sale, manufacturing and development of products. Logistics, new business development, providing services in a broad range of fields, either through the company itself or with any other company in which they hold shares or interests. Okay, that is a lot of areas.
Thinking of one, Of all. – The tagline
Shoki Hoko (Corporate Responsibility to Society), Shoji Komei (Integrity and fairness) and Ritsugyo Boeki (Global Understanding Through Business) are the three prime philosophy pillars of this Global Brand.
Mitsubishi is an Integrated business enterprise with offices and subsidiaries in 90 countries and approximately 1,700 group companies worldwide. Their 10 business groups are engaged in a wide range of businesses across virtually every industry, ranging from natural resources to the items used in everyday life. Mitsubishi manages a variety of operations in locations across the globe working to achieve sustainable growth for the company and Society.
Mitsubishi evolution
Mitsubishi Mission
Their mission is to provide optimal business solutions to societal needs. Their food and consumer goods businesses help provide a stable supply and resources for everyday life. Engaging in each link of the supply chain, from the production of raw materials to processing, logistics and sales, we provide products that are safe, secure and highly traceable. In the fields of mobility and infrastructure their operations support the sustainable growth of cities. These include Automotive business, airports and other businesses that facilitate the smooth flow of people, goods and data as well as dedicated urban development projects.
The company has vehicle manufacturing facilities in Japan, the Philippines, Thailand, and Indonesia, and 12 plants co-owned in partnership with others. Mitsubishi has had a 30-year-long association with actor Jackie Chan, who has used their vehicles almost exclusively in his movies throughout his career.
They also invest in mineral resources and metals projects which are vital in so many ways to the growth of prosperous cities. Energy and power essential for both quality-of-life and industrial development, Operations there include liquefied natural gas or LNG as well as wind power and other renewable energy businesses. By providing a stable supply of energy and power they are helping to realise Sustainable societies. Having their roots in trade, Mitsubishi Corporation has flexibly adapted their business models in line with the ever-changing needs of society. Once again we are in a new era, this one Defined by innovative digital technologies. In order to continually evolve as a company they are taking on new challenges in this space as well. Since their Foundation the three corporate principles have underpinned our commitment to create a new value hand in hand with society.
Mitsubishi Facts
The Mitsubishi logo was derived from the flag design of its shipping company predecessor. The three triangles are actually based on the shape of a water chestnut. In Japanese, the word for three is “mitsu,” and the word for water chestnut is “hishi.” However, “hishi” is pronounced as “bishi” when used in the second half of a word. The combination generated the name Mitsubishi.
The logo design, originally created for the shipbuilding company, was based on a blending of two family crests. It existed for many years before the automotive manufacturer’s version was trademarked in 1914.
Sold in over 160 countries around the world, Mitsubishi has established itself as the 16th largest automotive manufacturer in the world. Over the years, Mitsu has partnered with other leading brands including Volvo, Chrysler, and Hyundai to produce vehicles sold around the globe.
In 1976, Mitsubishi developed the Silent Shaft engine, reducing vibration in 4-cylinder setups. After patenting the groundbreaking technology, they then licensed it to several other big-name manufacturers including Porsche an Saab.
The Mitsubishi brand name was not introduced in the U.S. until 1982, when their sedan, the Tredia, and coupes, the Cordia and Starion, hit the scene. When sales started out, Mitsubishi’s cars were sold through 70 dealers in 22 states. But by the end of the ’80s, the company had run its first U.S. ad campaign and significantly increased its presence.
Speaking of Guinness Book records, Mitsubishi beat five of them in 24 hours in 2011. Taking their newly released Outlander and Outlander Sport to remote Canada, they racked up a series of unrivalled achievements in one day.
Greatest distance driven by a vehicle in reverse on snow in 30 seconds (300 meters)
Shortest braking distance by a vehicle on ice (56.2 meters)
Most vehicle figure eights on ice in two minutes (3 laps)
Fastest vehicle slalom relay on ice (1 minute, 11 seconds)
Fastest driven square lap (19 seconds)
Mitsubishi Business Model
Mitsubishi Corporate Strategy Model 2021
Midterm corporate strategy 2021, showing business portfolio (Business management model)
This business portfolio shows clearly that the most business of the company comes from the mineral resources area and the second most investment balance is in motor vehicles, machinery and equipment and steel. Investments that show an upward trend in these times are
The reason behind this up jump In investments can be the unprecedented times we all are facing, that is the pandemic. Also, the future lies in electricity and is going to be about sustainability development and natural resources. So, the company wants to invest in the future via the course available through their widespread businesses. We can also see a downward trend in the retail business because of the Covid-19.
Mitsubishi planning reorganisations across fields of its presence(Mitsubishi Midterm 2021)
The company revealed in the annual business portfolio that the company will be forming more business groups for the likes of natural gas, industrial materials, Petroleum and chemicals, Minerals etcetera. While the LNG demand is rising because it is the prime resource in the power and industrial sector in the Japanese market, Their mission is to tap this demand via adjustments or betterment in the present scenario to be in sync with the rising demands.
Industrial materials are an ever increasing competitive market and diversifying materials are likely to provide the opportunity of diversification. The company is planning to redefine the role that they play In this scene. The food industry faces challenges of diversifications. Mitsubishi plans to tap this trouble too by introducing more stable and sustainable business models around this field. To calm societal problems around supply chain management. With the same target to spearhead into solutions, Mitsubishi also plans to jump around some stuff here and there in the Consumer Industry, Power solutions and Urban development to make their existing businesses in these domains more efficient and well planned.
Consolidated Net Income 2021
How does Mitsubishi make money?
The Company is actually a group of group of companies stacked together in harmony, Including but not limited to these groups –
One of the most prominent or major source of revenue for Mitsubishi is their automotive business, That is known to us as Mitsubishi Cars. They started manufacturing cars from 1917, a luxury vehicle for the government officials. They decided to jump into motorsport with the “Macau Grand Prix” In 1962. With an inception like this, Mitsubishi went through a long history of vehicles, made for everyone. They were sold in America, Japan and eventually spread out in the whole world. From that time, Their Automotive business became a major and prime source of the revenue.
In one of its leading places, North America, The company determined its initial target audience to be consumers under the age of 45, typically married, and with an annual household income above $55,000. Mitsubishi strategised about the best ways to reach this demographic group. The company’s solution was to pitch the Galant as an antidote to the drab routines and responsibilities of adulthood. So they came up with a tagline “Wake Up and Drive”. After cars this magnanimous giant corp is moving its legs to electric future. Yes, Mitsubishi Electric, a new sustainable approach to transportation that is matching the company’s tagline of sustainable future. Truly Thinking of one, of all.
So, we see that the company is totally diversified to too many areas. Be it manufacturing, development, services, transport of all sorts and what not. Let’s look at some interesting data touch points in representation.
Conclusion
The company has established itself as a global brand with its strong position in different spheres.
It is a group of companies packed together for synergy.
It operates heavily on its Automobile business and invests primarily in various sustainable resources.
The philosophy of this Corporation has three edges Shoki Hoko (CSR), Shoji Komei (Integrity) and Ritsugyo Boeki (Understanding).
It plans to go with the aim of sustainable growth in future, meeting the current pandemic needs.
FAQs
What is Mitsubishi known for?
Mitsubishi is among the top automotive manufacturer that sold in over 160 countries around the world.
What country was Mitsubishi founded in?
Mitsubishi was founded in 1870, Tokyo, Japan.
How much money does Mitsubishi make a year?
Mitsubishi Corporation generated revenue amounted to around 15-16 trillion Japanese yen.
What products does Mitsubishi make?
Mitsubishi products include products in several industries that are:
ITC Limited is an Indian global aggregate organization headquartered in Kolkata, West Bengal. Established in 1910 as the ‘Magnificent Tobacco Company of India Limited’, the organization was renamed as the ‘India Tobacco Company Limited’ in 1970 and then to ‘I.T.C. Constrained’ in 1974. The specks in the name were expelled in September 2001 and the organization was renamed as ‘ITC Limited’.
The organization completed 100 years in 2010 and during 2012-13, it had a yearly turnover of $8.31 billion and a market capitalization of $52 billion. It employs more than 30,000 individuals in over 60 areas in India and is part of the Forbes 2000 rundown.
Since the organization was to a great extent dependent on horticultural assets, it wandered into associations in 1911 with the ranchers of southern India for sourcing leaf tobacco. Under the organization’s umbrella, the ‘Indian Leaf Tobacco Development Company Limited’ was framed in the Guntur area of Andhra Pradesh in 1912. The principal cigarette processing plant of the organization was set up in 1913 in Bangalore.
In 1918, leaf-purchasing focuses were made in southern India. ITC’s cigarette manufacturing plant at Munger was outfitted with a printing office in 1925, clearing the path for its first non-tobacco business. Even though the initial six years of the company’s presence were essentially committed to the development and union of cigarettes and leaf tobacco organizations, ITC’s bundling and printing business were set up in 1925 as a key in the reverse mix for ITC’s cigarettes business. It is today India’s most complex bundling house. More industrial facilities were set up in the next years for cigarette producing capacity all over India.
In 1928, development started for the organization’s central command, the ‘Virginia House’, at Calcutta. ITC procured Carreras Tobacco Company’s plant at Kidderpore in 1935 to further fortify its essence. ITC set up an indigenous cigarette tissue-paper-production plant in 1946 to essentially lessen import costs and an industrial facility for printing and bundling was set up at Madras in 1949. The company obtained the assembling business of Tobacco Manufacturers (India) Limited and the integral lithographic printing business of Printers (India) Limited in 1953.
The organization was changed into a Public Limited Company on 27 October 1954. The initial move towards Indianization was taken around the same time with 6% of the Indian shareholding of the organization. During the 1960s, innovation was given more concentration with the setting up of cigarette hardware and channel pole fabricating offices planned for accomplishing independence in cigarette production.
Ajit Narain Haskar became ITC’s first Indian director in 1969, and this was important for encouraging Indian administration within the organization. As the organization’s proprietorship was logically Indianized, under Haskar’s authority, the name of the organization was changed from ‘Magnificent Tobacco Company of India Limited’ to ‘India Tobacco Company Limited’ in 1970.
ITC likewise turned into the first organization in quite a while to begin staged-Indianization of capital; the Indian shareholding component of ITC developed from 6% to 25%. ITC went into brand sponsorship for different games, beginning from the Scissor’s Cup in 1971. Creative market crusades and electronic information handling began during the 1970s.
In 1973, ITC set up its incorporated research focus in Bangalore, went for expansion, and wandering into innovative work. With the unfurling enhancement designs, the name of the organization was changed to ‘I.T.C. Limited’ in 1974. The Indian shareholding aspect increased to 40% during this time. ITC went into the cordiality part with inn business in 1975 with the ITC Welcomgroup Hotel Chola in Madras.
ITC picked the cordiality segment for its capability to procure elevated amounts of outside trade, create the travel industry framework, and foster a huge scale of immediate and aberrant business. The shareholding went over 60% in 1976 and more lodgings were started by the organization in the next years. In 1979, ITC entered the paperboards business by advancing ITC Bhadrachalam Paperboards Limited. J N Sapru took over as the organization’s director in 1983 and universal development began with the obtaining of Surya Nepal Private Limited in 1985.
The year 1986 saw overwhelming moves from the organization with the opening of an Indian eatery in the city of New York, the securing and renaming of Vishvarama Hotels to ITC Hotels Limited, and the setting up of two new pursuits – the ITC Classic Finance Limited and ITC Agro Tech Limited. ITC likewise went into the eatable oils industry with the dispatch of the ‘Sundrop’ brand of cooking oils in 1988. Tribeni Tissues Limited was gained in 1990. K L Chugh accepted the job of administrator in 1991, and ITC Global Holding Private constrained was launched as a universal exchanging organization (Singapore) in 1992.
In 1994, every one of the inns under the organization was moved into the recorded backup organization ITC Hotels Limited. ITC, through the brand ‘Wills’, supported the 1996 Cricket World Cup.
Y C Deveshwar took over as the organization’s administrator in 1996, and the corporate administration structure was re-framed to help the successful administration of various organizations. ITC left the eatable oils business and monetary administrations, sold the ITC Classic Finance Limited to ICICI Limited, and handed the ‘Sundrop’ business to ConAgra Foods Limited in 1998.
In the year 2000, creative activity for ranchers called ‘e-Choupal’ began in Madhya Pradesh 2000. That year saw the dispatch of ITC’s ‘Wills Sport’ scope of easygoing wear with the first retail outlet in New Delhi and ITC’s entrance into stationery items and gifting business through the ‘Articulations’ scope of welcome cards and ‘Cohort’ note pads.
An entirely claimed data innovation auxiliary, ITC Infotech India Limited was launched in 2000 and ITC Bhadrachalam Paperboards Limited was converted into ITC Limited. The name of the organization was changed to ‘ITC Limited’ precluding the spots and adjusting the system ‘No stops for ITC’ in 2001. A representative investment opportunity plan was presented, and a web-based interface for the organization was propelled. Backups for ITC Infotech were set up in the United Kingdom and the USA.
Cigarettes: Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol, and Flake.
Prepared Foods: Kitchens of India, Aashirvaad, Sunfeast, Mint – O, Candyman, and Bingo.
Way Of Life Retailing: Wills Lifestyle, John Players, and Miss Players.
Individual Care: Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel, and Superia.
Welcome, Gifting, And Stationary: Brands incorporate Classmate, PaperKraft, and Color Crew. Propelled in 2003, Classmate proceeded to turn into India’s biggest scratchpad brand in 2007.
Security Matches: IKno, Mangaldeep, VaxLit, Delite, and Aim.
Products under ITC
Incense Sticks: Ship, I Kno, and Aim brands of security matches and the Mangaldeep brand of agarbattis (incense sticks).
Nourishments: ITC’s real sustenance brands incorporate Kitchens of India; Aashirvaad, B common, Sunfeast, Candyman, Bingo! what’s more, and Yippee! ITC is India’s biggest vendor of marked nourishment with over Rs. 4,600 crores in 2012-13. It is available crosswise over 6 classifications in the nourishment business that include nibble sustenances, prepared to-eat suppers, organic product juices, dairy items, and dessert shops.
Individual consideration items incorporate aromas, haircare, and skincare classifications. Significant brands are Fiama Di Wills, Vivel, Savlon Soap, and Handwash, Essenza Di Wills, Superia, and Engage.
Lodgings: ITC’s Hotels division (under brands including WelcomHotel) is India’s second-biggest in-network with more than 90 inns throughout India. Brands in the friendliness area possessed and worked by its auxiliaries incorporate Fortune Park Hotels and WelcomHeritage Hotels.
Paperboard: Products, for example, claim to fame paper, realistic and other paper are sold under the ITC brand by the ITC Paperboards and Specialty Papers Division. Classmate stationery products that are popular for their quality are manufactured by ITC.
Bundling And Printing: ITC’s Packaging and Printing division work producing offices at Haridwar and Chennai.
Data Technology: ITC works through its completely possessed backup ITC Infotech India Limited.
Established in 1910 as Imperial Tobacco Company of India, the organization at first managed tobacco items for a considerable length of time before broadening into non-tobacco items during the 1970s. ITC from that point forward has developed as a multi-business combination having business in different enterprises: Hotels, Lifestyle retail stores, prepared to eat division, confectionary segment, Paperboards portion, body care items and so forth.
ITC is one of India’s prominent multi-business ventures with a market capitalization of $52 billion and a gross sales value of $10 billion. ITC is crowned among the world’s best big Companies, Asia’s FAB 50, the World’s Most renowned Companies by Forbes magazine, and as ‘India’s Most Admired Company’ in an overview directed by Fortune India magazine and Hay Group. ITC was also included as one of the world’s biggest practical worth makers in the buyer merchandise industry in an examination by the Boston Consulting Group. ITC has been recorded among India’s Most Valuable Companies by Business Today magazine. The company is among India’s ’10 Most Valuable (Company) Brands’ as indicated by an investigation led by Brand Finance and distributed by the Economic Times. ITC likewise positions itself among Asia’s 50 best-performing organizations arranged by Business Week.
Big Conglomerate: Throughout the years, ITC has turned into a huge combination offering a huge scope of items and administrations running from agri-products and nourishment items in the FMCG segment to IT solutions. Involvement in such a differing cluster of items and administrations has helped the organization raise as an unmistakable player in the market: cigarettes, hotels and paperboards, and packaging divisions.
Vast Experience: With 108 years of involvement in the Indian market, ITC has built a hearty conveyance structure that is parallel to none of its rivals present. This has helped the organization to comprehend the needs of the customers, making it monetarily solid and aggressive.
The X-Factor: ITC’s E-Chaupal activity planned for making the web accessible to Indian ranchers has contacted the lives of a large number of ranchers and their families in the provincial piece of the nation. ITC has expanded brand nearness through this social activity and has brought some brand quintessence focus to the firm.
Use Of BCG Matrix
ITC’s business sections are FMCG-Cigarettes, FMCG-Foods, ITC Infotech, Agri-Business, Hotels, Paperboards and Packaging, Branded Apparels, and Packaged Foods. Out of these, FMCG-Cigarettes is its money cow while Agri-Business, Hotels, Paperboards, and Packaging come in the “star” section for ITC. FMCG-Foods still gives off an impression of being a question mark for the firm while Branded attire and Packaged substances are ordered as canines for the firm.
Distribution
The organization works with its business channel; items are made accessible to the discount vendors through Carried and Forward Agents (CFA’s) which is then sent to the retailers in towns directly or through Small Wholesale Dealers to reach the customers in the remotest of Indian areas.
Brand Value
ITC has been positioned 772 on Forbes magazine rundown of top 2000 organizations all around. The brand has been esteemed at $51.5 billion as of June 2018. ITC also found a place at 239th position in the universe’s best bosses rundown of Forbes Magazine and Asia’s 50 greatest performing organizations rundown assembled by Business Week.
Investigation Of Market
Under the GST system, extra cess being charged over the GST of 28% on cigarettes and tobacco-related items, ITC has assessed a steady taxation rate of over 20%. Investigators have assessed that the organization’s deals volumes of cigarettes have endured a shot and has declined by over 5% in the last quarter. Remote trade profit over the most recent 10 years remained at $7.1 Billion of which agri fares comprised 56% of the offer. In the social division with direct work to more than 32,000 individuals and through drives like e-chaupal, social and homestead ranger service activity, and ‘Mission SunehraKal’, ITC has contacted the lives of a huge number of ranchers and their families in provincial India.
On the earth front, ITC has been a Water Positive Enterprise (16 years straight), Carbon Positive Enterprise (13 years straight), and solid waste reusing Positive (11 years straight). This is the main undertaking in the realm of practically identical measurements to have accomplished and supported the 3 key worldwide lists of natural maintainability.
Analysis Of Clients
With its different scope of items and administrations, ITC caters to a diverse scope of clients going from the age group of 5-60 years and even more with its items running from Candyman and Mint-o to Aashirvaad and so on.
Cigarette-to-cleanser producer ITC has revealed 10.69% year-on-year development merged net benefit at Rs 13,162.30 crores for the money related year 2018-19, driven by paperboards, paper and bundling, lodgings and FMCG business.
“The organization had posted a united net benefit of Rs 11,890.78 crore in the budgetary year 2017-18,” ITC said in a recording to the Bombay Stock Exchange. United income from tasks expanded possibly by 4.55% to Rs 49,862.11 crore in FY19 when contrasted with Rs 47,688.5 crore in FY18. On the quarterly premise, the FMCG major posted an 18.72% development in net benefit at Rs 3,482 crore in the Jan-Mar period when contrasted with Rs 2,932 crore in a similar quarter of the most recent year. Income expanded to Rs 12,206 crore in Q4FY19 when contrasted with Rs 10,586.80 crore in Q4FY18, helped by exchanging openings oilseeds, wheat, and espresso in agribusiness, higher volumes and improved acknowledgement in paperboards and improvement in RevPar in lodgings. The working benefit (EBITDA) of the organization expanded to Rs 4,572 crore against Rs 4,144 crore in the year-prior period.
“The organization conveyed one more year of strong execution despite a difficult working condition. The Cigarettes Business, affected by soak increment in assessments under the GST system, honed centre around conveying world-class items through nonstop advancement alongside top tier execution consequently solidifying its market standing,” ITC said in the trade documenting. A week ago, rival Hindustan Unilever Limited (HUL) revealed a 15.98% y-o-y development in united net benefit at Rs 6,060 crore for the money related the year 2018-19, against income of Rs 39,860 crore. ITC’s board has prescribed a profit of Rs 5.75 per customary portion of Re 1 each for the monetary year finished 31st March 2019, subject to the imperative endorsement, which will be paid on July 16, 2019.
In a different advancement, the organization delegated Sanjiv Puri, Managing Director, as the Chairman of the Company with impact from May 13, 2019. Puri’s advancement comes after YC Deveshwar, ITC’s longest-serving Chairman, passed away on Saturday. Thus, Puri’s new assignment is Chairman and Managing Director of the organization. Following profit declaration, portions of ITC declined in negative territory to exchange at Rs 288.50 each, down 3.09% on the BSE.
Conclusion
ITC ltd. is a leading FMCG Company in India and for the last three consecutive years, it has shown accelerated growth in the FMCG portfolio. ITC has placed itself successfully as a market leader in various verticals and will continue to dominate through several brands.
FAQs
What is ITC Limited?
ITC Limited is an Indian global aggregate organization headquartered in Kolkata, West Bengal. It has a diversified presence across industries such as cigarettes, FMCG, hotels, packaging, paperboards and speciality papers and agribusiness.
What is the main business of ITC?
ITC Limited is an Indian conglomerate with diversified businesses in Fast Moving Consumer Goods comprising foods, personal care, cigarettes, apparel, stationery products, incense sticks, safety matches, hotels, packaging and others.
Tesco is one of the biggest multinational conglomerate companies in the world, that mainly focuses on grocery and general merchandise retailing. The company has its headquarters based in Welwyn Garden City, England. It is now said to be the third-largest retailer in the world if measured in terms of its gross revenue, while if the conglomerate is measured based on its total revenue it stands in the Ninth spot in the world.
There is no doubt when we say that Tesco is the market leader of groceries in countries like Hungary, Thailand, Ireland and the UK. In the United Kingdom, the company is known to hold over 28.4% of the overall market share. Besides that, it also has its outlets in seven countries of continents like Europe, North America and Asia. Tesco is probably one of the most recognizable retail names in the United Kingdom especially when it comes to grocery shopping.
But what you may not know is that the company also completes with other retailers like convenience stores and general merchandise. The British conglomerate has made a name for itself through organic growth and most notably through a series of strategic acquisitions it’s acquired and its subsidiaries since it was first created. The Tesco business strategy believes in expanding into a combination of acquisitions of new stores, retail services and adapting to the needs of consumers.
The main aim of the Tesco business model is to serve the customer not just in the UK but around the world and make them happy. This is more cost-effective for the business than acquiring new ones. According to some studies, the company’s record-breaking sales is said to be more than £1billion a week and which was better than the expected annual profits of over £3.4billion for 53 weeks to 28 February 2010, despite the impact of the global downturn.
In the UK, Tesco currently has more than 2,200 stores that can range from the large Extra hypermarket style stores to other small-sized Express high street style outlets. Tesco online success is due to the expansion of its customer base via its online website and app through which it attracts more than a million regular customers and sells a huge variety of original product categories when it comes to groceries. Tesco digital marketing strategy is also responsible for making its customers return.
While its general merchandise sector has now diversified and has its foothold in industries such as banking, insurance services, electrical consumer goods, telephone gadgets and quality airtime. This article will tell you just how Tesco business model made the company so successful and will also contain Tesco competitors analysis.
Tesco is one of the largest commercial and grocery store chains in the world, while the Tesco online market share is the largest when we regard the European market. Not only is Tesco marketing strategy and business model very successful in terms of selling its products but it’s also known to be extremely unique and professional in its ways of handling business and further possibilities. The Tesco business model is designed in a way wherein the company buys, moves and sells its various products and services to their customers to get insight in order to do a bit better each time.
Tesco business model focuses on four major components. The first step to Tesco business model analysis is in bringing in more feedback and insights into what customers want and try to understand their needs. By doing that Tesco can sell and distribute their products and services to their customers. The business model of Tesco is flexible, as the company is also willing to adjust or and improve its four components to accommodate the different types of customers that shop with them, this process also makes their shopping experience better and easier.
The Four Components of Tesco Business Model
Product
The Tesco model offers its customers quality products that are developed by their Product team. Tesco company products are said to be of high quality because its team has an absolute focus on fair, transparent, mutually beneficial relationships with suppliers. The Product team works with our suppliers to source the best possible range of quality products that meet and anticipate our customers’ needs.
Channels
Tesco online success is because the company brings the best products to customers even through its online portals. Tesco online business model works through a range of channels from small shops to large shops and also focuses on growing their online business. As part of improving our offer, the company is investing in making our channels even more efficient and convenient for our customers.
Customers
Tesco business relies on serving its customers and its business model has customers at its core. We listen to our customers and act on what is important to them to deliver the best shopping trip: price, service, range and availability.
Reinvest
The main focus is to improve Tesco for customers. With the Tesco strategic plan 2021, the company aims at becoming more efficient and reinvesting some of the savings we make to improve the shopping trip. The reason for this reinvestment is clear, the better a job we do for customers, the more we will improve sales; the more our sales improve, the more we can reinvest.
Tesco has is one of the most unique business models when you analyze its rapid expansion first throughout the United Kingdom. It has expanded its footprint over the whole Eastern European area especially along the side of Ireland and Scotland. Tesco gains its large number of stores by simply buying off other small-sized stores in large quantities and also by purchasing the midsized grocery store chains.
This way instantly resulted in Tesco gaining numerous new stores, which were then connected with one business transaction. So what makes Tesco different from competitors? These are some unique factors about Tesco business model are:
Buying huge quantities of produce to then sell cheap
Everyone knows that the more someone buys from a product, the cheaper the product will become. The company maintains highly competitive prices up to the point where it has started to self-produce most of its grocery products in order to become even cheaper and give way to further specialization.
The company is self-producing
Tesco has also been extensively successful because it’s been producing its own grocery products in its own factories for a long time now. This way it can work at way lower rates than its competitors who do not have the means to produce their own goods. The company has become so successful in terms of self-producing its goods that these days it’s also been dealing with the production of premier quality products which are sold under Tesco’s brand name.
It has Online gateways
Tesco has opened its website and app through which it has been selling its products online with massive success especially in countries like the UK and other countries throughout Europe. Many people are not aware that this creates a unique situation as Tesco is the only chain of its kind in Europe that could keep its online shopping system successful and profitable.
Increasing the number of stores
Tesco has started to diversify and increase its stores, in order to make its services products more widely available for a larger crowd of people. This way, one doesn’t need to travel to another city or town whenever they want to shop at a Tesco. It’s enough to pop in for a quick shopping in a Tesco Express or in a Tesco Metro which was established for this exact reason.
Tesco’s competitors are Sainsbury’s, ASDA, Waitrose and Morrison’s. These four companies are called the Big Four in the United Kingdom. Tesco competitors analysis shows you how over the past few years, grocery companies like Aldi and Lidl have started to grow exponentially and become strong competitors to Tesco.
The conglomerate also competes with the local convenience stores, which are slowly gaining popularity as they cater to customers based on their different tastes. The local convenience store market is highly fragmented. According to a research done, in the U.K. grocery market leader because it has 26.9% of market share, while Tesco main competitors is Sainsbury’s followed by ASDA, which have 15% and 14.1% of market share respectively.
ASDA
Asda logo
ASDA is a British supermarket chain that is one of Tesco main competitors. The company was founded as a joint venture between the Asquith family and a Yorkshire company known as Associated Dairies back in 1949. The company was earlier a major subsidiary of Walmart until 1999 but was later brought over by Zuber and Mohsin Issa and TDR capital in 2021.
So far Asda is known to have over 635 retail locations, more than 584 of which are supermarkets. Besides being one of the top grocery company in the UK, it also operates larger format superstores, which sells clothing and furnishing in addition to groceries. ASDA’s competitive strategy aims at keeping its prices low and improving its store layouts and online sales channel so it can easily revolve according to the shopper’s habits.
Sainsbury is one of the top Tesco competitors in the UK. Sainsbury was founded in London England in 1869. Like Tesco, Sainsbury also has its foothold in industries such as in the logistics, wholesale and retail distributor’s space. But compared to Tesco, Sainsbury’s is said to generate over $47.3 billion less revenue. Its efforts in its marketing have led the company to become the second-largest grocery chain in the United Kingdom, it currently has 1,415 locations across the country
The company to charges a premium for grocery products, though price reduction has been an important element of its recent competitive strategy and this is why Sainsbury is tesco’s biggest competitors. To increase customer engagement, Sainsbury’s is experimenting with different store layouts, expanding its offering to general merchandise categories and promoting its in-store banking services.
Morrisons
Morrisons logo
Morrisons is another top contender for Tesco which is headquartered in Bradford, England. The company was founded in 1899 and is in the Hypermarket and Supercentres industry. The company has more than 492 supermarkets and has over 50 convenience stores. Morrisons operates 18 plus food manufacturing facilities, it also has eight distribution centres, and directly engages farmers to get fresh and good quality poultry, meat and produce.
Morrisons is a tesco competitor because it is working towards making improvements in its stores along with its vertically integrated structure while reducing everyday prices. The company aims in creating a more balanced approach to promotional pricing is also an important element of the strategic price review. Morrisons has recently adopted a new strict capital expenditure budget, Which is why most of the new stores opening are in the smaller convenience format.
Aldi is a top Tesco competitor and a popular German grocery chain which have its headquarters based in Essen, Germany. It operates in over 10,000 stores in 20 different countries. Aldi is one of the top discount grocers in the whole of Europe. This Tescos competitors offers low priced grocery items with a disproportionately high private label offering. Similar to Tesco marketing strategy, Aldi does not accept manufacturer coupons but does offer huge discounts on groceries. Besides that, it holds Aldi holds weekly specials on general merchandise products.
Waitrose
Waitrose logo
Waitrose is one of tesco’s biggest competitors and another British grocery supermarket chain. The company was founded in 1908 and has its headquarters based in London, England. Like Tesco, Waitrose has a foothold in industries like logistics, wholesalers and retail distribution space. Waitrose operates in over 336 locations most of which are supermarkets. Some supermarket stores include restaurants that serve hot foods, while other locations specialize in general merchandise in addition to food.
Conclusion
Tesco is one of the biggest supermarket chains in the whole world because of its innovative business strategies. Tesco is a brand in itself as it has its own factories and its online shopping comes with benefits. Tesco has its own brand of mobile phones and telecommunications, besides that, it also has its petrol stations which add to the fact that tesco has been succefull in not just the grocery sector but other industries too. And these factors are what makes tesco different from competitors.
Tesco is one of the biggest multinational conglomerate companies in the world, that mainly focuses on grocery and general merchandise retailing.
What is Tesco’s business strategy?
Tesco’s main business strategy is aggressive expansion into overseas grocery markets.
What makes Tesco a successful business?
From the analysis of the 4Cs ( which are Customer Benefit, Customer Cost, Customer Communication and Convenience) marketing strategy used by Tesco.
Who are Tesco’s main competitors?
Tesco main competitors are Sainsbury’s, ASDA, Waitrose and Morrison’s, which are often called the Big Four in the United Kingdom.
Is Tesco multinational?
Yes, Tesco is a multinational conglomerate as it is into different industries like banking, telecommunication, insurance, etc.
Who are the Tesco competitors in India?
The Tesco competitors in India are Big Bazaar, Dmart, Reliance Fresh, Spencers Retail, Hypercity, Star Bazaar, etc. as they provide groceries at cheaper prices.
Numerous technological innovations and advancement has made the world a smaller place. Irrespective of type of business, online services is booming. The demand of online service has taken over the healthcare industry as well. Online doctor consultation is rising popularity and growing with high speed after Covid Pandemic. There has been 500% increase in online doctor consultations in India in 2020.
Practo is one of those online doctor consultation platform which has revolutionized the healthcare industry. Practo enables consumers to find the best doctors, book appointments, and consultations for better health care decisons and treatment. The bangalore based healthcare platforms has gained tremendous popularity. Here are insights of Practo’s Business model, its revenue model, and more to know about Practo.
Practo is an Indian based company that is now established in about 15 countries. It is an application that works as a bridge between doctors and patients and is mainly focused on booking interactions with doctors. It was founded by 2 Indian B.Tech students, Shashank ND and Abhinav Lal. They aimed to come up with a way to save or keep reports and other medical prescriptions. Their idea was then put into action and they came up with an online platform where the patients can interact with the best online doctors, book appointments and so on.
Services Provided by Practo
Their major value proposition for patients was to make online healthcare search easier. The application must be able to help patients look for various medical help like doctors, hospitals, clinics, laboratories, check-up and scan bookings and so on. This must be done through the app or website and without any issue. They should be able to get a virtual doctor on demand.
The next plan was Practo Plus, which is a subscription-based membership. This is to provide perfect 24/7 care.
Practo not just helps book appointments but also consult a doctor online. This is a cost and time-saving attribute in the app. In this case, the communication can be through audio call, video call and also image sharing through the app. This can help the doctors diagnose and give necessary medical advice.
Just like Google drive helps us save details and records for future use, Practo drive helps patients store the necessary medical records like test results, prescriptions, schedules, etc. This is highly secure and safe.
Business Model of Practo
Practo Logo
The first thing that a business has to do is to figure out the major activities and value propositions and make a perfect, working business model. Practo, being a common platform for patients and doctors, they had to make sure there was proper value provided to both sides.
Why Should Doctors Use Practo?
Practo competitors
Practo helps the doctors get more patients and grow their practice online. They can hence maintain a better relationship with the patients and also chat with them whenever necessary. A prescription can also be uploaded through the app. Follow-ups and other notifications can also be given by the doctors to the patients. They can also publish health-related articles and tips. Practo makes the entire system easier and efficient.
Practo provides a complete tool for clinic management for doctors which helps in generating invoices, reminders, storage of bills and prescriptions, etc. On the whole, the online visibility of the clinic and the doctor grows with the use of Practo.
Practo’s Customer Segments
Practo has segmented their customers into 3. Which are:
Practo’s customer segment
Key resources for Practo
The major resources that they use are the website, the app, their staffs and manpower and Information technology.
Their major activities are:
Marketing and advertising, through which they promote their product and services. With the growing use of social media, they use those platforms to promote Practo.
This, being a technology-based app, their another major activity is to develop an easy to use software.
They also had to bring in and enhance the network between patients, doctors, labs, clinics and so on.
They also have the perfect customer relationship management strategies. They provide 24/7 customer service through mails, chat and also phone calls and their automated services, like notification system and SMS services have helped them maintain customer relationships.
Any company thinks of how to increase revenues and hence generate more profits. Practo also has its way to make huge revenue. We know that Practo has a few products and services and using this they generate the revenue.
They initially started by taking a certain percentage of money for every booking that takes place. As they expanded, they found more opportunities to get better revenues.
Practo charges the doctors and hospitals some money for getting listed in the app or the website. This also gives them some revenue. They are now expanding their domain and are now connecting bigger hospitals, labs and pharmacies and take commissions from all these. This is their basic revenue model. Over this, there are a few other ways by which they generate revenue.
Acquisitions of Practo
They get revenues through their acquisitions. Practo has acquired 4 companies.
QikWell: It is an online appointment booking software
Over the years, Practo has helped doctors reach a lot of patients and also helped them practice medicine.
Just like there are search results on search engines, Practo has a search result. Doctors need to get on top of the list to be able to do more online consultations and hence earn more. Practo Profile sells premium listing and for this, the doctors have to pay some money. This is a part of their revenue.
The next way of generating revenue is through Practo reach wherein, Practo provides ad spaces on their website and app. It is available in various sizes and the payment depends on various factors. Displaying ads on their website also gives them good revenue as we know that Practo has a lot of users.
There is another division in Practo which is called as Practo Ray. This helps the doctors Manage the hospital or clinic. It is a PMS (Practice Management Software) for the doctors. For doctors to use this, they need to pay a fee, monthly. This is the largest source of revenue for Practo.
Next comes Practo Plus. It is a subscription-based yearly healthcare plan for patients. It offers unlimited online doctor consultation and Practo gets some revenue from this too.
Practo earns from medical deliveries too. Now that they have tie-ups with labs and pharmacies, they get some commission for bookings and also from delivering medicines to the patients. They also make the sale of medicines to drug stores and chemists.
The main reason for Practo to be able to attract the customers is because they can cover the right audience. They know that there is no big point in covering famous doctors as they would have already established themselves and would not pay much for Practo and so, they started by approaching new doctors and clinics who will need to get patients. Also, there are not many competitors in the field as Practo has already attracted most doctors and patients and it is well established.
FAQs
What is the revenue of Practo?
Practo has recorded a revenue of Rs 124.3 crore for the financial year ended March 31, 2019.
How does Practo work?
Practo offers a secure and encrypted platform for patients to connect with doctors online to interact at their own convenience.
What is the valuation of Practo?
Practo valuation stands at $904 Million (April, 2021).
When the most awaited T20 World Cup match final is gonna start, as you are oblivious of it and attending a crucial meeting at the office or with family. You can skip neither meeting nor the match. Even though you have a phone and a ferret for the score on Google doesn’t give you more goosebumps than watching it live.
Sometimes, Google itself takes time to update the current news of cricket, but here Cricbuzz is an app & sports website that engages in Indian cricket news. Cricbuzz covers news, articles, live commentary including the textual context in the video of live cricket, player stats and team rankings.
Times of India invested a major share and became the owner of Cricbuzz. Three former Infosys employees- Pankaj Chhaparwal, Pravin Hedge and Piyush Agrawal jointly developed a mobile app for live cricket news & scores in 2004.
Cricbuzz became the 7th most searched site in India as of 2014, and the app was hyped with more than 100 million downloads in 2019. According to the report, in 2015 the Cricbuzz website crossed over 2.6 billion page views, making it the most renowned mobile app for cricket news in India.
Cricbuzz is an Indian cricket news website that functions all over India, gathering all cricket news & score live and updating it on the website.
Target Audience of Cricbuzz
When statistics are taken by Top end Sports on ‘which country has most cricket fans?’ whereby India ranked first in the list with 100 regional popularity. Usually, 70% of people in India are cricket fans, and without any dubious Cricbuzz underscore the population of Cricket die-hard fans.
Cricbuzz offers live coverage of cricket matches including videos, updated scores, and commentary. It provides its services to On-Mobile. On-Mobile has collaborated with different mobile operators that function its services worldwide over 1.68 billion mobile users across the globe. Cricbuzz derives its primary source of income via ON-Mobile.
Apart from that, Cricbuzz generates revenue from displaying advertisements on its platform, where they have partnered with InMobi for generating mobile advertisements.
Cricbuzz became the most reputed sports website in India, after defeating the top competitors– International Cricket Council, Cricket Exchange, ESPNcricinfo and OneCricket.
How does Cricbuzz make money?
The two main sources of revenue of Cricbuzz are advertisements and selling the latest cricket updates to the On-Mobile networks as they cast the gathered information of cricket from Cricbuzz on various sports networks all over the world. Also, the company sells cricket scores to the Telecom operators and, they present the scores on other sites and charge a small fee for them.
Besides, the Hike messenger pays a huge sum to Cricbuzz in streaming live scores to its users. Cricbuzz sends messages to their users to keep informed of the latest news & scores of the live match. Notably, Cricbuzz net revenue is worth 7.8 million dollars with more than 100 million users.
Cricbuzz also generates revenue from its recently launched subscription service – Cricbuzz Plus. The services offer users In-match clips for select India matches with no ads.
Every game has a bunch of crazy buffs, but cricket lovers are the craziest among them. When a match begins they get into their own space. It’s only them and the game, the rest of the world turns out blank. They skip their food, family, friends and even work if they can, they refuse to book from the screen just to make sure they don’t miss any of those crazy fan moments or shots.
Sometimes, there come unavoidable duties and we have no option left other than skipping the game. But that doesn’t mean we can’t keep track of the scores of the game.
If you want to know the live scores and news at the actual time, then the Cricbuzz is one you are looking for. The scores are updated on the site, or you can also download the Cricbuzz app on your device.
FAQs
What is Cricbuzz?
Cricbuzz, an Indian website where the live scores of the cricket matches are uploaded along with videos, Articles, and other stats. The website was Launched in November 2004. You can also get the updates through the Cricbuzz app.
Who is the founder of Cricbuzz?
Cricbuzz was created in 2004 for the cricket buffs to know the live scores and the current updates. Pankaj Chhaparwal, Piyush Agrawal, and Pravin Hegde are the originators of Cricbuzz, and still are the managers.
What is the revenue of Cricbuzz?
As per the stats, the Revenue of the Cricbuzz is $7.8 million.
When you are related to advertising, you must have come across one of the most brilliant and successful advertising websites – Craigslist. Started as a “side-gig” the brand truly made a remarkable presence in the advertising businesses and made its strong position in the billion dollars company’s list. Sounds impressive, right? Well, yes! That’s some pretty amazing strategies behind it.
Craigslist came out as a non-profit organization but soon the company took its level up and registered itself as a profit organization in the year 1999.
However, in the very same year, Craigslist bought a verified domain for its company in order to protect its brand significance and name in the market. Also, it made the subscribers more dedicated towards the brand.
But it can’t be ignored that the tactics and strategies Craigslist applied in its marketing are pretty strong and present an example among the other companies. Talking about strategies, let’s get a brief understanding of how Craigslist came out to be such a successful brand. So, Let’s look at its business model and how it makes money.
Before we get started with the business model of Craigslist, let’s understand what really is Craigslist?
Craigslist is an online marketplace that provides services to people and companies for listing on its official website. They can post their listing of jobs, services, offerings, or sale items as per their requirements.
Craigslist was founded by a prominent American internet entrepreneur, Craig Newmark who is also known as a famous philanthropist. The brand was established in 1995 and is headquartered in San Francisco, California.
Today, Craigslist is known as one of the most visited websites across the world with a monthly visit of more than 500 million visitors.
Where does Craigslist operate?
Being one of the most successful advertising websites across the world, Craigslist operates in around 23 largest cities in the United States which are promptly listed on the homepage of the Craigslist website.
Apart from this, the brand serves over 700 cities across 70 countries in the world. The users can easily see the ads available in their nearby locations based on their residence.
Target audience of Craigslist
Craigslist targets every community, age group, and gender. As it provides ads in various categories across the globe, it does not target its audience specifically. So, Anyone with an internet connection can easily benefit from the amazing service of Craigslist.
The most amazing tactic that Craigslist uses in its marketing plans is offering the service of posting any sort of ad from any category by anyone, on its official website. And that’s something that attracts more users towards it.
In fact, Craigslist allows users free classified services for posting ads. This makes the brand extremely different from the usual advertising companies.
However, when it comes to specific sections for advertising, Craigslist does charge some money that varies according to advertising plan and the geographical location.
With Craigslist, users get a wide range of commercial categories where they can list out their ads. Then when visitors see their preferential advertisement, they can get directly in touch with the user through the given contact information.
How does Craigslist operate?
Craigslist functions as a host for displaying classified ads from different categories including job postings, sales items, housing, business, service (Beauty, legal or lesson), and personal.
For classified advertising, Craigslist is absolutely free of cost and also for browsing and ad responding. It charges a definite amount of money in only some specific categories.
How does Craigslist make money?
The main source of revenue for Craigslist is charging the users for listing their ads in some selected categories. The rate varies as per the geographical location and the advertising plan the user opts for. Like for the listing, Craigslist charges around $3 to $75 based on the category and preferences.
Apart from these specific charges, Craigslist is absolutely free for the users as well as the users and interested candidates.
Initially, Craigslist came out with the freemium model that only attracts more customers and increases growth. The founders did their best in keeping Craigslist an affordable brand for the convenience of its users. Besides, the highest rate that Craigslist charges is $75 in the job postings section, that too in the United States; the brand did its best to provide the utmost choice and service for the users.
To conclude, with time, Craigslist came out as one of the biggest and most successful advertising websites across the globe. Although the founders keep the numbers hidden, it’s quite sure that they earned great profit through their website.
In the upcoming years, Craigslist will be seen with advanced business developments in order to emerge more promptly in the marketplace. Also, it would be providing new channels to the advertising industries as an alternative opportunity.
Even though the brand charges so little from the users and has such a simplified charging system, Craigslist still made a remarkable market presence.
FAQ
Who is the founder of Craigslist?
Craigslist was founded by Craig Newmark in 1995.
Is Craigslist available in India?
Yes, Craigslist has an India specific section and is currently available in 16 states.
Is Craigslist free?
Craigslist lets users post listings for free but for some specific listings users have to pay a fee.
It is almost impossible to not hear about Britannia while living in India. This household name has conquered the country with its spectacular food products, which have been tasted by almost everyone. From starting a ‘Good Day’ by being the partner of a cup of tea to patch up the broken hearts with ‘Little Hearts’. It has done everything, to be one of the leading food companies in India specializing in bakery and dairy products.
Britannia, the name of the brand itself speaks its value. Since the 1990s, it has fallen under the Wadia group that has now been lead by Nusli Wadia. It has been a part of the country for over a hundred years and has been serving the taste buds of many generations. From biscuits to cheese, to cakes, you name it, they have it.
The success that this company tastes is a result of a structured business model. Let’s find out about the model that helps the business to climb the stairs, to reach the top position.
The history of Britannia is just like the taste of its products, rich and fascinating. In 1892, the Britannia industry was founded by some English businessmen and the investment was of just ₹295. It was started as a mere bakery at first.
Later on 21st March of 1918, another businessman, named C.H. Holmes becomes a partner and the Britannia Biscuit Company Limited came into existence. Initially, Britannia was only manufacturing biscuits and was selling them. Although, in 1997, they started producing dairy products as well, since then it hasn’t looked back.
Where Does Britannia Operate?
Britannia has its footprints in more than 60 countries and has been serving them nonchalantly. Especially, it has conquered the hearts of the Middle Easterns, by locally manufacturing its products in UAE and Oman. International Bakery products serve as the subsidiary of Britannia. The main headquarters of the company is in Kolkata. Britannia products are distributed among over 5 million stores in the country.
As mentioned before, Britannia manufactures and sells Bakery and dairy items.
Bread and Buns -Britannia bread, Atta Kulcha bread, Britannia Pav, Britannia sweet bun, Britannia fruit bun
Biscuits -Good Day, Britannia Crackers 50-50, JimJam, Milk Bikis, Tiger, Marie Gold, Little Hearts, Bourbon, Nutri Choice
Cakes– Britannia Gobbles, Britannia Muffins, Tiffin Fun
Dairy – Cheese, Milk, Butter, Ghee Yoghurt
Target Audience of Britannia
The target audience of Britannia is not limited to a certain age group or of an income group. It is truly for anyone and everyone. Products like Little Hearts, Tiffin cakes are used, to appeal the kids. Nutri Choice is for those who are a little bit health-conscious. Marie Gold caters to the need of the older generation as well.
Business Model of Britannia
Britannia is a brand that decided to serve the people with utmost care with deliciousness and nutrition. It basically focuses on two things, Bakery products, and Dairy products. Its main motive is to provide healthy and nutritious food items to the people. With that target, it has become the first food company that has zero Trans Fat in its food items.
Britannia becomes one of the leading Indian bakery brands by following some unique strategies. It has 13 factories located all over the country and has 4 franchises.
Some of the key points of Britannia’s business models that make it unique are:
Its main objective is to promote biscuits of the Britannia brand more than other products.
It concentrates on providing food items to its customers that will fulfill their daily need for nutrition.
It believes in quality food items that deal with fruits, nuts, seeds, pulses, dairy, and protein substances that are necessary for the healthy growth of a normal human being.
Focuses on producing better quality food and selling them economically in prices for every income group.
It has joined hands with the Government and different NGOs to fight against malnutrition and undernutrition prevailing in the country.
It has started the Britannia Cares program that offers fitness activities to ensure a healthy lifestyle amongst its employees.
To counter attack micronutrient deficiencies in India, it has taken steps to avoid all those products that are harmful according to the Food Safety and Standards Authority of India (FSSAI)
Britannia also decided to curb down the salt and sugar limit of its snacks to promote Eat Right Movement by FSSAI in 2018.
How Does Britannia Make Money?
There is a number of ways Britannia makes money although its main focus is to provide nutritional elements through their food items to everyone.
Britannia’s revenue depends on the sale of its bakery and dairy products.
95% of sales depend on the products dealing with biscuits.
5% of sales depends on dairy products.
Britannia has signed a deal of joint venture with a Greek Company named Chipita S.A to produce and sell ready-to-eat croissants in India. It is also working on expanding its demand abroad, especially in Africa and South East Asia.
In 1921, Britannia becomes the first company from the East of The Suez Canal to import and use gas ovens.
The trust Britannia has created from their initial days made it possible for them to supply biscuits to the British army during World War II.
It is one of the oldest biscuit companies in India and carrying its legacy since 1918.
Conclusion
‘Britannia’, this name carries the trust of millions of people. From providing biscuits to the soldiers during World War II to being responsible by taking steps to eradicate malnutrition and undernutrition from the country. It has come a long way to be one of the biggest Food and Beverage companies of India.
FAQ
What is the revenue of Britannia?
The revenue of Britannia was ₹11,878.95 Crores (US$1.7billion) in 2020.
Who is the CEO of Britannia?
The current CEO of Britannia is Varun Berry.
When was Britannia founded?
Britannia is one of the oldest companies in India founded in 1892 and is headquartered in Kolkata.
Damini Bhandary
