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Tag: Business Model

  • How Do Short Video Platforms Make Money? | Business Model of Short Video Platforms

    The arrival of TikTok has increased the craze for making short-form videos worldwide. Short video platforms are on the trend. TikTok was the most used Short Video Platform in India which had been downloaded over 611 million times. Ever since it got banned in India on June 29, 2020, over national security issues, after a fallout between both the country. To fill up the gap TikTok left, there has been an onslaught of new short-video platforms. Instagram launched “Reels” immediately after TikTok got eliminated from India.

    There are various short-video platforms that have entered the market like Josh, Moj, MX Taka Tak and many more and they are growing exponentially. The reason is that the mobile data price has dropped since the arrival of Jio. And also, android phones with good cameras are available for a reasonable price which led to an increase in the consumption and creation of short video content in India.

    Age Group of short video platform users
    Age Group of short video platform users

    Now, anyone with a good internet connection and a good camera phone can create and upload short video content. The short video platforms have a wide range of business models and the way of making money differs from one company to another. Moreover, these platforms provide free services to their user which require experiments with the business model. In this article, we will talk about how short video platforms make money. So, let’s get started.

    How Short-Video Platforms make money?

    Promotion Of Brand
    Sponsorship
    Affiliate Marketing
    Collaboration
    Transactional Video on Demand (TVOD)
    Subscription Video on Demand (SVOD)
    Ad-supported Video on Demand (AVOD)
    Hybrid Model

    Promotion Of Brand

    85% of Marketers consider Short-Video Platforms as the most-effective medium for Brand Promotion
    85% of Marketers consider Short-Video Platforms as the most-effective medium for Brand Promotion

    Short Videos are enjoyed by people scrolling on social media. Be it Reels on Instagram or TikTok videos, if it’s entertaining it’s bound to catch your attention. There are many brands that introduce challenges in this video platform and ask people to participate. The brand gives money to the platform to introduce the challenge, this way the promotion is done, and people get to interact with the brand while doing the challenge, and thus their work is done.

    How to use video content for marketing?

    Sponsorship

    Sponsorship is another way of earning money for the Short Video platforms. Many companies willingly sponsor short video apps to reach the masses. As these videos are watched by people in bulk, sponsoring them is beneficial for the company to be known by a large number of people who can be their potential customers. It is a win-win situation for both the platform and the sponsor as the platform gets to earn money through it.

    Affiliate Marketing

    Brands give money to the platform for Affiliate marketing. Here, the platform has to present a video regarding the product of that brand where all information about it has been provided in the video. As people are now attracted to videos more, affiliate marketing helps brands to increase their sales. Thus, nowadays some companies are taking the support of short video platforms and are using them for affiliate marketing.

    Collaboration

    Whenever there is a new film or a music video is going to be released, the stars or the singers collaborated with the video platforms. This way they get to promote their films or music videos whatever it is and can be presented to many people. Collaboration brings money to the short video platforms and thus it is one way to earn.

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    Transactional Video on Demand (TVOD)

    In this type of business model, a customer normally pays a one-time fee or rents it to watch videos or live events. It is more commonly known as pay-per-view. This helps you to choose the entertainment videos you want to watch; you can just pay for the content you require and that increases the popularity of this model. It is considered cost-effective as you can choose what type of entertainment you want to watch rather than subscribing to everything in bulk.

    TVOD helps to concentrate and offer content to a specific market. You won’t be getting unwanted or unrelated video suggestions and would receive video suggestions according to your likes.

    You can find video platforms like YouTube or Instagram using this method to suggest videos. The platforms would keep a track of your activities and give you suggestions on content according to your choice.

    That’s the reason most of the time you would be able to find the content according to your choice. The only difference is that you can view videos and content for free on these video platforms.

    Subscription Video on Demand (SVOD)

    In this subscription-based model, a customer will have to pay an amount monthly, quarterly, or yearly. Through the subscription model, you will be able to view an unlimited amount of content on their platform along with the recently released content.

    There will be different subscription models. The services you receive would be better as you pick the most premium version of the models.

    The main difference between different subscription models would be that there would be a difference in the prices. Also, you would be getting added services and certain advantages. Most of the time, the in-demand videos would be available for premium subscribers.

    This Revenue model is mostly followed by major OTT platforms such as Netflix, YouTube and many more. The subscription model of YouTube is known as YouTube Premium. The main advantage here is that you can choose what you want to watch on these platforms.

    Ad-supported Video on Demand (AVOD)

    In this model, a customer can view the content for free. It is a platform where you can view the content for free but would receive ads in between your content. The platforms get their major revenue from the ads.

    The platform would charge different rates from the advertisers according to what time they would want to play their ad. For example, an ad played at the beginning of the video would cost more than the ad played at the end of the video. The main example of this type of model is YouTube.

    On certain platforms like YouTube, even the content creators would receive a specific amount for the ads being played in between their videos. This would encourage the content creators to make and promote more of their content which will indirectly improve the financial position of the platform as well as the content creators.

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    Hybrid Model

    This is the type of business model normally adopted by companies that want to increase their reach. It is a combination of all the above methods. The platform would want a customer to view it for free at the beginning where they would play some video ads and later convert the customers into the subscription model or transactional video model.

    The company would generate revenue from the beginning stage and it would attract a lot of customers as well. This model would provide the customers with a lot of options to choose from. You would be able to choose the model you prefer according to your budget or your likes.

    Conclusion

    Number of Active Users of Short Video Platforms in India
    Number of Active Users of Short Video Platforms in India

    The demand for short video platforms would keep on increasing in the coming years. The number of active users on Short-video platforms is expected to reach over 650 million by 2025. We would be able to see a lot of content creators and a lot of viral videos being uploaded. With the ban of TikTok in India, there are a lot of new apps coming up along with new features such as Reels, introduced by Instagram to promote short video content.

    YouTube has become a platform where people create content as a full-time profession. Short video platforms are going to flourish in the coming future as the entertainment industry is gaining popularity.

    FAQs

    What is the Business Model of TikTok?

    TikTok primarily gains its revenue through advertising.

    Which countries have banned TikTok?

    TikTok is banned in India and Pakistan only. Though Bangladesh, the United States and Indonesia have attempted a ban on TikTok but later lifted it.

    Why is TikTok banned in India?

    The Indian government in a statement stated that the decision to ban the app was “to protect the data and privacy of its 1.38 billion citizens”.

    Which is the best platform for short videos?

    The best platform for short videos based on its features are as follows:-

    • Instagram
    • TikTok
    • Moj
    • Josh
    • Likee
    • Taka Tak
    • Snapchat
    • YouTube Shorts
    • Dubsmash

    Which short video app is best to earn money?

    The best short video app to earn money are as follows:-

    • Kwai
    • Instagram
    • Likee
    • TikTok
    • Moj
    • Josh
    • Taka Tak
    • Vigo Video

    Which app is best for short video editing?

    The best video editing apps are:-

    • InShot
    • KineMaster
    • Movavi Video Editor Plus
    • FilmoraGo
    • ActionDirector
    • Adobe Premiere Rush
    • Funimate.

  • Forbes Business Model | How does Forbes Make Money?

    Forbes is a media and publishing firm based in the United States, formed in 1917. The company regularly covers business, technology, financial markets, financial planning, sports, and various other issues. It also publishes a magazine with the same name, eight times a year, and has a readership of 5.8 million as of spring 2020.

    Forbes is most well-known for its lists, which include rankings of billionaires, top 30 under 30, universities, celebrities, and self-made women, to mention a few. Former Republican presidential candidate Steve Forbes leads the organization.

    What is the Business Model of Forbes?
    What is the Revenue of Forbes?
    Forbes Figures of 2021
    How does Forbes Make Money?
    Is Forbes a Profitable Business?

    What is the Business Model of Forbes?

    CEO Mike Federle has revealed Forbes’ new business plan. According to Mike, it is built on an audience and business scale with 150 million individuals. With the focus on direct-to-consumer conversion, this investment [the SPAC] will allow the company to design bespoke products that address these distinct business cohorts.

    In other words, they are focusing on trying to convert the regular subscribers into buying additional material like educational products, etc.

    The company now wants to utilize its proprietary technology stack and analytics to convert readers into long-term, engaged platform users, including memberships and recurring subscriptions to premium content and highly targeted product offerings.

    What is the Revenue of Forbes?

    Forbes Logo
    Forbes Logo

    Forbes is excellent at estimating how much other people are worth, their global wealthy list of billionaires is currently updated in real-time and is a beautiful resource for those interested in such matters.

    The total value of the combined company is projected to be $630 million. When Hong Kong-based investor group Integrated Whale Media Investments bought a controlling stake in Forbes in 2014, it was valued at $475 million.

    In 2020, it generated $163 million in sales, with the expectation of about $193 million in 2021. However, the revenue for the year 2021 saw a rise of 40% to $259 million as compared to $185 million in 2020 and the net income stood at $38 million. This figure was beyond the expectations of the company.

    Forbes Figures of 2021

    The revenue for the fourth quarter of 2021, increased 51% year-over-year to $94 million, driven by contributions across Media and Consumer businesses. The net income was $18 million during this period compared to a net income of $10 million for the same period in 2020.

    The revenue for the year 2021 saw a rise of 40% to $259 million as compared to $185 million in 2020 and the net income stood at $38 million.

    The adjusted EBITDA saw an increase of 86% to $60 million in 2021 compared to the adjusted EBITDA of $33 million for the previous year.

    Every month, Forbes reaches more than 150 million people across all platforms – online, on social, through Live and virtual events, and through video and print. Forbes aims to use the content it publishes to introduce consumer-focused paid products to increase consumer revenue.

    How does Forbes Make Money?

    Single Purchases

    When the company started initially, its model was based on the fact that they were providing information that was verified and well researched. It was released eight times a year, so people were more intrigued.

    Subscription Model

    The subscription model is the most important way of revenue for the company. The company tried to make fixed customers when selling physical copies. Although when they shifted to the online platform, they followed a similar pattern. This way, they kept providing customers with daily information.

    Advertising Revenue

    Forbes Advertising Examples
    Forbes Advertising Examples

    It is an example of a traditional revenue model. Companies buy advertising space on your site or magazine, also known as the advertising business model. Organizations express their intended content in text or visual format in the purchased advertising space. Companies pay you to promote their ads using standard advertising space for a price in the magazine, pay-per-click (PPC), pay-per-view (PPV), and other agreed-upon strategies online.

    Live Events

    Live events have become a significant source of revenue. Forbes hosted more than 60 events worldwide in 2018, including marquee events like the Under 30 Summit, which debuted in Europe this year with an event in Amsterdam. The CMO Summit, which also extended into Europe, and the Women’s Summit are two other important events. Forbes will also host an Under 30 Global Women’s Summit in 2019.

    Promotion through Earned Media

    Individuals and firms recognized on a Forbes Ranking, Cover Story, or other feature can repurpose the content for use on their owned and sponsored media platforms to highlight their excellent publicity and industry leadership. Billboards, print ads, banner ads, social media displays, television ads, and so on are examples of these.

    Licenses

    Forbes also has 40 licensing agreements worldwide, including China, India, and Russia. The Forbes School of Business, an MBA program in collaboration with online Ashford University, and a Learn at Forbes online skills-training platform are other licenses. Because it is an annual annuity, the licensing company is almost profit-driven. Budget year after year, it was understood that the license agreement requires a minimum payment. In certain circumstances, it’s a one-time payment combined with a revenue share or an equity investment.

    Is Forbes a Profitable Business?

    Forbes is not required to declare profits because it is a private enterprise. However, Federle said in a December 2018 interview with Digiday that it had its most lucrative year since its inception. He wouldn’t give a particular sales amount but said overall revenues were up more than 18% year over year, with profits up to 42%.

    After the difficulties in trading during the pandemic in 2020, the company’s growth shifted towards profitability in 2021. The company claims a net income of $19.5 million for year-to-date 2021, compared to a net loss of $2.8 million for the same period in 2020.

    Conclusion

    In brief, Forbes is a company that has built a reputable brand in itself. Forbes has traditionally made money from subscriptions, single purchases, and advertising revenue. However, profiting from this paradigm is becoming increasingly complex and the entire media sector is affected.

    Forbes’ current income strategy entails increasing live events and utilizing its brand and readership to create scalable products. The revenue potential is being addressed in areas such as education and eCommerce.

    FAQs

    What is Forbes’s Business Model?

    Forbes is focusing on trying to convert the regular subscribers into buying additional material like educational products, etc. The company now wants to utilize its proprietary technology stack and analytics to convert readers into long-term.

    How does Forbes make money?

    Forbes makes money through the Subscription model, Single purchases, Advertising revenue, Live events, Promotion through earned media, Licenses, etc.

    How much does the Forbes website make?

    Forbes website estimated revenue is more than $48 Million. And it has a daily income of more than $44,000.

    Who is the CEO of Forbes?

    Steve Forbes, Mike Federle, and Michael Perlis are the CEOs of Forbes.

  • Deloitte Business Model – How Does Deloitte Make Money?

    Deloitte is a large professional services network. It was considered the 3rd largest privately owned company in the United States in 2020 by Forbes. In FY2021, the company generated a revenue of US $50.2 billion. Over the years, Deloitte has widened its reach globally and boosted its revenue continuously.

    But, what exactly is the business and revenue model of Deloitte that has made it the biggest financial firm in the world? Read this article till the end to find answers to this question.

    What is Deloitte?
    Target Audience of Deloitte
    Business Model of Deloitte
    What Makes Deloitte Stand Out in the Market?
    How Does Deloitte Make Money?

    What is Deloitte?

    If you are living under a rock, let me tell you Deloitte Touche Tohmatsu Limited which is popularly called Deloitte is one of the ‘Big Four’ accounting firms which is headquartered in London. The ‘Big Four’ is a nickname that is given to the four largest accounting firms in the United States. Deloitte offers audit and assurance, consulting, financial advisory, risk advisory, AI and analytics, cloud, tax, and legal services.

    Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG) are the other three accounting firms. Deloitte operates in more than 150 countries. In 2021, Deloitte had a total of 3,45,374 working employees.

    William Welch Deloitte, a British accountant, founded this company in London in 1845. The company further made its footprints in the United States in 1890. In 1972, the company merged with Haskins & Sells and formed Deloitte Haskins & Sells. Later, in 1989 the firm merged with Touche Ross in the US to form Deloitte & Touch. In 1993, the firm was renamed Deloitte Touche Tohmatsu which is now popularly known as Deloitte.

    Deloitte provides its financial and legal services to Fortune 500 companies. But, the firm also provides its services to small and medium-sized companies and even startups. The firm’s major client base is in the American division.

    Business Model of Deloitte

    Let’s dive deep into the business model of Deloitte.

    Audit

    Apart from the traditional accounting and audit services, the firm also focuses on internal auditing, IT control assurance, and Media and Advertising Assurance. In FY2021, audit and assurance services resulted in a 6.1% increase in their revenue.

    Deloitte auditing services are more than just numbers. The company evaluates the relationships with your technology priorities, capital investments, inventory on hand, workforce, and growth strategies. This helps Deloitte in bringing valuable insights that connect with your brand vision.

    The firm explains where your company stands and how you can grow in the future. Working with Deloitte means that your company will get access to an experienced and highly skilled group of people that will provide you with deep insights. The firm uses cutting-edge modern auditing technology to deliver the most accurate results.

    Consulting

    The firm offers consulting in the following areas:

    • Strategy
    • Analytics and M&A
    • Customer and Marketing
    • Core Business Operations
    • Human Capital
    • Enterprise Technology and Performance

    The consulting team of Deloitte not only answers all your complex questions but gives you actionable strategies that boost your revenue and disrupts the market. According to Deloitte, the most important aspect of any business is people. So, the team will give you strategies that elevate your customer’s experience. It will make sure that your core operations are working smoothly. Their strategies will make technology your friend.

    Financial Advisory

    Risk & Financial Advisory

    Deloitte offers corporate finance services which include:

    • Commercial and personal bankruptcy
    • Advisory
    • Mergers & acquisitions
    • Forensics
    • e-discovery
    • Document review
    • Capital projects consulting
    • Valuation

    The highly skilled professionals will tell you the potential risks and opportunities for your business. The firm uses cutting-edge technology like cognitive intelligence, analytics, and robotic process automation to solve complex problems.

    Risk Advisory

    Risk advisory at Deloitte help you in evaluating the following risks:

    • Strategic and reputation risk
    • Regulatory risk
    • Project risk
    • Cyber risk
    • Enterprise risk management
    • Information security and privacy
    • Data quality and integrity
    • Business continuity management and sustainability

    The firm will help you in understanding the risk so that your company reaches its full potential.

    Tax and Legal Services in Deloitte include increasing the net asset value of the company, handling international tax activities, reducing the tax liabilities, undertaking the transfer pricing, and implementing tax computer systems.

    Specialists help private companies understand and plan effective business and tax strategies that help the company respond to the evolving market conditions.

    Artificial Intelligence and Analytics

    Deloitte’s artificial intelligence and analytics services reveal all the hidden relationships from all the data. Using the helpful insights the team will help you in implementing the right strategy at the right time using the advanced technology. The team will help you improve your outcomes in key areas of your business which will ultimately boost your revenue.

    Deloitte takes your data to the next level using the latest cloud-enabled platforms and big data architectures. The robotic and intelligent automation team will implement automated processes to make accurate decisions and judgments and find new ways to expand your business. AI insights and engagement tools will generate highly actionable predictions and insights using the data.

    What Makes Deloitte Stand Out in the Market?

    The four things which make Deloitte stand out in the market are their constant drive for innovation, highly skilled professionals, number of employees, and emphasis on making the customer experience more powerful.

    All their services revolve around finding creative solutions for their clients. To push the boundaries of innovation the firm has set up five innovation centers:

    • Deloitte U.S. Center for the Edge
    • Deloitte Center for Energy Solutions
    • Deloitte Center for Financial Services
    • Deloitte Center for Health Solutions
    • Deloitte Center for Regulatory Strategies

    The firm knows that if they have a huge workforce of highly skilled professionals they would be able to target a huge number of companies. Among the ‘Big Four’ Deloitte has the largest number of employees: 3,45,374.

    How Does Deloitte Make Money?

    As you saw above, the business model of Deloitte revolves around these 5 services: audit, consulting, financial advisory, risk advisory, AI, and analytics. They offer these premium services to Fortune 500 companies and earn huge revenue. Consulting is one of the major business units of Deloitte, accounting for 40% of total revenues in 2021.

    Half of their revenue comes from North and South America. In 2020, the financial giant generated 25.3 billion U.S. dollars from its Americas division. Deloitte has understood that its major client base is in the American region. To serve these clients the firm hired a lot of employees:156,000. Revenue from the Asia Pacific and Europe, the Middle East, and Africa (EMEA) regions accounts for 25 billion U.S. dollars.

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    Conclusion

    If you see the business model of Deloitte closely you will understand that they provide a range of financial and legal services instead of just focusing on one service. This helps the company in earning a huge amount of profit. Most importantly, Deloitte has understood that the only way to thrive in the market is to constantly innovate.

    So, what did you learn from the business and revenue model of Deloitte? Hire specialized employees that have the courage to take risks. Remember, if you don’t have talented employees you will never succeed. Try to diversify your services. Always provide quality service to your clients and help them grow because if your clients make profits you will also make profits. You should always look for ways to innovate because this is the one thing that will help you grow.

    FAQs

    What is the core business of Deloitte?

    The core business of Deloitte revolves around audit and assurance, consulting, financial advisory, risk advisory, AI and analytics, cloud, tax, and legal services. Deloitte provides innovative solutions to their clients using advanced technology.

    Why is Deloitte so successful?

    Deloitte is successful because of its wide range of financial and legal innovative solutions, advanced technology, and a huge number of employees. Among the Big Four companies, Deloitte has the largest number of employees: 3,45,374. Their dominance in the American division is another reason why the company is still thriving in the market. In 2020, Deloitte generated 25.3 billion U.S. dollars from the American division.

    Who are Deloitte’s biggest clients?

    Deloitte’s biggest clients are:

    • Berkshire Hathaway
    • Microsoft
    • Starbucks
    • Morgan Stanley
    • Procter & Gamble
    • Apollo Global Management

  • The Global Delivery Model (GDM) of Infosys Explained

    Infosys is one of the global leaders with its presence in over 50 countries and around 130 development centers in the world. There are over 3,14,000 employees in the organization with over 200 offices spread across the globe. It is also a globally certified, top employer. Headquartered in Bengaluru, the IT Services and consulting company has become the 2nd most valuable Indian brand. The company manages thousands of projects with excellence. Let us get insights into how Infosys sources its skill power to several locations around the globe and manages its project to create value for its clients.

    Infosys – The Startup
    Milestones Achieved by Infosys
    Infosys Business Model
    Infosys Global Delivery Model
    Infosys Partnership Strategy
    Infosys Global Presence
    Infosys Acquisition
    Revenue Generation Model of Infosys

    Infosys – The Startup

    The founder of Infosys is N.R. Narayana Murthy. He started the company in 1981 with only 10,000 rupees in his hand, borrowed from his family and six of his co-workers from his previous workplace.

    • The company managed without having a computer booth for two years.
    • It took them the same two years to get the computer that Mr. Murthy wanted.
    • The company could not afford to import data initially.
    • One might assume that being one of the company’s founders, the first employee at Infosys was Mr. Narayan Murthy. However, it was not Mr. Murthy but N. S. Raghavan who was the first employee.
    • The company was on the brink of collapsing after eight years. When one of their founders, Mr. Ashok Arora, left the company in 1989 and handed over the responsibilities to Mr. Murthy.

    Milestones Achieved by Infosys

    Infosys has achieved many heights till now, some of which are:

    • Infosys became the first Indian I.T. company to get listed on NASDAQ (National Association of Securities Dealers Automated Quotations)
    • While the world was still trying to overcome the biggest financial scam of 1992, Infosys finally became public in 1993. Its IPO was 13% subscribed.
    • It has received the 2021 Frost and Sullivan Strategy Leadership Award.
    • The company took a step towards changing its headquarters from Pune to Bangalore in 1983, precisely because Bangalore city was meant to be known as the hub of I.T.
    • It was made public in the year 1993, opening the first Iraq-based sales, and won contracts for developing mission-critical software for very high-profile companies like Nordstrom and Nortel; from 1990 to 2001, revenue grew at over 80% per year.
    • In 1999, Infosys hired its 300th employee and became the first Indian-registered company listed on the Nasdaq. Its revenue that year reached 100 million US dollars.
    • The company now has its presence in over 50 countries, with over four decades of experience in managing the systems and workings of global enterprises.
    • Infosys has an arsenal of 260k+ employees and 1,659 trusted clients.

    Infosys Business Model

    A business model is a company’s core strategy for profitably doing business. It includes information like products or services the business plans to sell, its target markets, and any expected expenses. Since its inception, Infosys has been the face of the Indian IT sector. Its business model caters to two categories: IT Consulting and IT Services.

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    Infosys Global Delivery Model

    In its initial years, Infosys focused primarily on international markets, such as the US and UK. The Global Delivery Model (GDM) was its primary business model. During the 1990s, Infosys concentrated on a few sectors, such as banking and finance, and manufacturing. Infosys’ exponential growth is because they charge a lower premium than companies like Accenture and IBM.

    Consistent growth is very necessary for any business to maintain its existence. By increasing its per capita revenue, visibility in the business, client portfolio, and changing its investment strategies, Infosys has maintained a consistent growth record.

    Infosys Partnership Strategy

    Infosys created a unique system that transforms its clients into partners. Their long-term success has been greatly enhanced by this partnership strategy. The investments made by these partners have allowed them to make significant profits.

    Infosys Global Presence

    The company has built a network of branches across the globe, which allows its services to be provided in many countries. They have branches in the United States, India, Europe, China, Australia, Japan, and the Middle East. The company has 116 development centers, 84 sales and marketing offices, and 18 international offices.

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    Infosys Acquisition

    Infosys excels at spotting acquisition opportunities. Infosys has acquired several businesses that have helped it to grow. Among them are:

    • Expert Information Services (Australia, 2003),
    • McClish Systems (Australia, 2009),
    • Portland Group (Switzerland, 2012),
    • Skava (the USA, 2015),
    • Panaya (Israel, 2015) and
    • Brilliant Basics (the UK, 2017).

    Revenue Generation Model of Infosys

    Infosys Revenue
    Infosys Revenue

    Infosys’ revenue generation model is considered one of the top development systems in the IT industry. Among its revenue-generating activities are:

    • Enhancing Process – The incorporation of cutting-edge technologies and gathering data from external sources helps them save time and improve their efficiency against their competitors.
    • Increasing Profit Margin – Outsourcing their work to offshore branches allows them to increase their profit margins.
    • Increasing Reuse – With years of experience, expertise in management systems, and their Knowledge Currency Units, Infosys has an advantage over its competitors.
    • Small Steps to Giant Leaps – A Center of Excellence in every business unit has enabled them to fund projects on broader scales.
    • Global Delivery Model – Infosys generates approximately two-thirds of its revenues from the North American market thanks to its strategic IT services and professional consulting.

    Conclusion

    Infosys has become one of the top companies in the I.T. industry. The key takeaways from the company’s success story are:

    • As a result of the inspiration of the founders, it is one of the most respected companies in the world.
    • Setbacks happen, but that does not mean you do not take risks and embrace change.
    • Choose a proper business model considering the nature of your business.
    • Keep yourself updated with cutting-edge technology to get an advantage over your competitors.
    • Having a global presence can help you reach more clients.
    • Have a strategy that works the best for you.

    The strategy to expand its services in different corners of the world, the acquisition opportunities, creating trust and value for its clients, and a proper profitable business model made the Company grow so huge. Infosys has amplified the potential and opportunities for people and businesses. It is among the most valued Indian companies leading the IT Service industry globally for years.

    FAQs

    When was Infosys founded?

    Infosys was founded in 1981 in Pune.

    Who is the founder of Infosys?

    N.R. Narayana Murthy is the founder of Infosys.

    Who is the CEO of Infosys?

    Salil Parekh is the CEO of Infosys since 2018.

    What is the revenue of Infosys?

    The global revenue of Infosys Limited amounted to about $13.56 billion in FY2021.

    What are the companies owned by Infosys?

    Some Companies owned by Infosys are:

    • EdgeVerve Systems Limited
    • Infosys Public Services Inc.
    • Infosys BPM Limited
    • Infosys Consulting Holding AG
    • Infosys Consulting Limited
    • Noah Consulting LLC
    • Panaya
    • Kallidus

    Who are the top competitors of Infosys?

    Top Competitors of Infosys are:

    • IBM
    • Globant
    • Deloitte
    • Accenture
    • Tata Consultancy Services
    • Wipro Ltd.

  • Substack Business Model – How Does Substack Make Money?

    Today, writers can reach millions of people around the world by writing blogs. They can earn money by leveraging the Google and Facebook ad models. This might seem a safe option to make money but, it also restricts the creativity of the writers.

    Writers are not able to create a direct connection with their readers because they have to constantly think about the on-page and off-page SEO.

    Writers know that if they don’t rank their article on the first page of Google they won’t get the traffic due to which they will not earn money. This was a big problem for writers. To put an end to this, Substack was launched in 2017.

    Within a few years, it has empowered the relationship between a reader and a writer. It has gained immense popularity and people are loving this platform. Substack has over 5,00,000 paying subscribers.

    Let’s understand the business model of Substack and how it makes money.

    What is Substack?
    Business Model of Substack
    How Does Substack Make Money?
    Future of Substack

    What is Substack?

    Substack was founded in 2017 by Chris Best, Jairaj Sethi, and Hamish McKenzie. The headquarters of the company is in San Francisco, California, USA.

    It is an online platform that helps writers launch their email newsletter. Writers can earn money by collecting a subscription fee from email newsletter subscribers.

    The platform provides all the tools to the writers which allow them to write high-quality content. The best part about Substack is that writers can publish unlimited content for free.

    Business Model of Substack

    The business model of Substack is simple. It provides all the tools to the writers to write content and earn money through subscriptions.

    You can manage your email list, add subscribers, send emails and analyse the analytics. Readers can subscribe to your email list monthly or annually.

    Apart from making things simpler, Substack has made the bond between readers and writers stronger in the following ways:

    Freedom to Write Content

    Page view metrics and advertisers have taken away the freedom to write authentically from the writers.

    Most writers feel that their creativity is lost due to these algorithms and metrics. Substack helps the writers to write content on their terms and build a genuine audience.

    Writers can keep all their subscription lists and content with them. Substack provides all the editorial and publishing tools so that writers can make engaging content. Most importantly, the platform has provided financial freedom to the writers.

    Substack V/S Website

    Now, the main question lies in why should someone use Substack instead of simply creating their own website?

    See, if you opt for a website you need to think about the domain, hosting, website design, payment integration, funnel management and a lot more. You have to hire a professional website developer to do all of these things.

    You have to figure out and make all these arrangements by yourself. Now, tech-savvy people won’t find it tough to do all these. This will also take a lot of time and you also need to invest money. But People who just want to write engaging articles without being involved in all these technical customs use Substack.

    Building Trust

    Trust is a very significant aspect of any business. Substack helps to build trust between the readers and writers. Due to the newsletter subscription model, writers engage in a one-to-one conversation with their readers as the article is directly sent to the email inbox.

    Since there is no algorithm pressure on the writers, the main focus stays on creating quality content for readers. Writers can understand what a reader finds interesting and write content accordingly.

    Substack producer, Valerio Bassan quoted, “As a publishing tool, newsletters provide a solid answer to the number one question in media today: how can we rebuild trust between us and our readers?”

    Using Substack writers can build their own brands. Emily Atkin who previously worked at The New Republic and ThinkProgress moved to Substack. She is now the author of the climate-focused Substack newsletter. Emily now earns more money as compared to her previous salaried journalism job. She is an excellent example of how Substack is changing the lives of many writers.

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    How Does Substack Make Money?

    Substack makes money by charging a 10% commission to every paid subscriber. So, until you make money using Substack, the platform also does not make any money. The minimum subscription fee is $5 per month to $75 per month.

    To make more money the main focus of Substack is to get more writers to produce content on their platform and make those writers earn money.

    The subscription model incentivizes the writers to make engaging content and give more value to their readers. Contrast this to an ad model where the incentive for writers was to gain as much attention as possible.

    Future of Substack

    In the future, Substack may add discovery tools like a recommendation engine which would help readers find interesting content according to their preferences. This will boost the relationship between writers and readers.

    Podcasting is another great opportunity. Substack already allows its writers to distribute free podcasts. These podcasts are monetized through ads. Rather than following the ad model, Substack can add a paid subscription option for podcasts. This will help both the company and writers to earn more money.

    FAQs

    How does Substack work?

    Substack helps writers publish their content, build an audience and make money by collecting a subscription fee from email newsletter subscriptions.

    How does a Substack subscription work?

    A Substack subscription starts from $5 a month and can go upto $75 a month. The price goes up as you increase the number of subscribers.

    How does Substack make money?

    Substack makes money by charging a 10% commission to every paid subscriber.

    Is Substack profitable?

    Yes, Substack is profitable as writers can build their brand on the platform and earn money by collecting a subscription fee from email newsletter subscriptions. Writers can leave the platform at the time they want and keep all the subscription lists with them.

    Does Substack own your content?

    No, all the content you publish on Substack is owned by you.

  • Gojek Business Model – How Does Gojek Make Money?

    Gojek is an Indonesian super app which is a one-stop destination for paying bills, booking movie tickets, ordering food, buying groceries, sending or receiving packages, booking two-wheeler or four-wheeler taxis, paying money digitally and much more. The company provides 20+ services to consumers.

    The company which started as a ride-hailing service with just 20 motorcycles is now Indonesia’s first decacorn.

    In May 2021, Gojek merged with Indonesian e-commerce company Tokopedia to form GoToGroup. The company has created its own ecosystem and is growing at a rapid scale.

    In the beginning, the company faced tough competition from Uber but, still, the company was able to beat the company all thanks to its business and revenue model.

    Let’s decode the business and revenue model of Gojek, shall we?

    What is Gojek?
    Main Services of Gojek
    Target Audience of Gojek
    Business Model of Gojek
    What Is Unique About Gojek?
    How Does Gojek Make Money?
    How Did Gojek Destroy Uber?

    What is Gojek?

    Gojek is an Indonesian company that has a super app using which you can pay money digitally and get access to on-demand services in various sectors like transport and logistics, food and shopping, daily needs, business, news and entertainment. Basically, the app is a one-stop destination for users to get a wide variety of services.

    Gojek operates in 5 counties: Indonesia, Vietnam, Singapore, Thailand, and the Philippines. The headquarters of this company is in Jakarta.

    The journey of the company started in 2010 when the company had 20 motorcycle drivers who were providing on-demand bike rides to passengers. Later, the company started providing food delivery and courier services.

    Although things completely changed for the company when it launched its official app in 2015 with four services: GoRide, GoSend, GoShop, and GoFood. Later, Gojek changed its business model to a super app and the rest is history.

    Main Services of Gojek

    Gojek provides 20+ services to its users:

    Transportation and Logistics:

    • Goride: Get a two-wheeler taxi and reach your destination on time.
    • Gocar: Book a four-wheeler taxi.
    • Gosend: Send or receive packages within a few hours.
    • Gobox: If you moving out and want to shift your goods to the new house you can use this service.
    • Gobluebird: Book exclusive Bluebird rides (Bluebird is Indonesia’s leading taxi operator).
    • Gotransit: Acts as a trip assistant where users can plan, track and reach from one destination to another using: public transportation, Gojek transport or a combination of both. This service provides real-time updates.

    Food and Shopping:

    • Gofood: Order food online from your favourite restaurant.
    • Gomall: Buy products from the online marketplace.
    • Gomart: Get groceries at your doorstep.
    • Gomed: Buy medicines from licensed pharmacies.

    Payments:

    • Gopay: 4th largest e-wallet service in Indonesia
    • Gobills: Pay your bills online.
    • GoPaylater: GoPayLater from Findaya provides a payment method where users can pay bills, buy clothes and pay the money in the upcoming months
    • Gopulsa: Top up your data and talk time.
    • Gogive: Donate money to the trusted NGO and GO beneficiaries.
    • Goinvestasi: Buy and sell gold and get the money credited to your Gopay account

    Daily Needs:

    • Gofitness: Access exercises such as yoga, Zumba, pilates and many more

    Business:

    • Gobiz: This service is especially for merchants who want to manage and grow their business.

    News and Entertainment:

    • Gotix: Book movies and events tickets
    • Goplay: Stream movies and web series
    • Gogames: Get gaming tips, top-up gaming credits and watch your favourite gamers
    • Gonews: Read the latest news

    Target Audience of Gojek

    The target audience of Gojek is people between the age group of 18-34 years old who live in urban cities. The company also targets people who are not financially stable by providing them with their digital payment service: Gopay.

    Since Gojek provides a wide variety of services they are able to cater for the needs of a larger audience. Their super app model allows them to connect with different kinds of people from different sectors.

    Business Model of Gojek

    Gojek follows the super app business model where they provide a wide range of services to its users on a single platform. This means that instead of using one app to book movie tickets and another app to send packages they can use Gojek to fulfil both of their demands.

    The super app model provides a more convenient approach and also saves time for the consumers. This business model works really well because nowadays consumers have become impatient and want things as fast as possible.

    The business model of Gojek revolves around three segments: consumers, merchants and drivers.

    Let’s see how the super app works for these three segments:

    Consumers:

    First consumers need to identify what kind of service they want. For example, do they want to book movie tickets, send packages, book a two-wheeler or order food?

    If the customers want to order food online, Gofood is the right option. The second step would be to select their desired food and add it to the cart. Finally, they have to pay the money. After paying the amount consumers will receive the food at their doorstep.

    Merchants:

    Once the food is ordered or any kind of service is requested the merchants will receive the order details in their Gojek app. Once merchants understand the order details they need to start processing the order. In the meantime, the delivery driver is on his way to get the product.

    Merchants have to make sure that they make the product or service as soon as possible. Once the order is ready, the delivery guy takes the product and delivers it to the customer. When the product is handed over to the delivery guy the money is instantly deducted from the merchant’s Gopay wallet.

    (All the transactions on Gojek are majorly done via Gopay)

    Drivers:

    Drivers need to first sign-up with Gojek by providing some basic details like name, address, identity proof, vehicle number, license number and many more.  The internet connection of drivers needs to be really good if they want to receive a large number of orders.

    Drivers can choose from a wide variety of services. They can sign up as the two-wheeler taxi driver, car drivers, delivery guys and much more. To get started they need to turn on the online icon which is present in the Gojek app. Once they turn it on, they will start receiving the orders.

    If a delivery guy is busy delivering products, the app shows him busy and the order is automatically assigned to another driver.

    What Is Unique About Gojek?

    The USP of Gojek is that the company provides 20+ services which users can access from just a single app. To beat its competition the company started using scooters and motorcycles instead of cars to avoid the huge traffic jams. Due to this brilliant idea, the services of Gojek became more premium and hassle-free.

    How Does Gojek Make Money?

    Commission from Consumers:

    Gojek gives a one-stop solution to its consumers for all their demands. They don’t have to install numerous apps to fulfil their needs. Instead with just Gojek, they can access 20+ services. For this convenient and fast service, consumers need to pay a service charge of 10% of the order.

    Commission from Merchants:

    A lot of merchants want to showcase their products and services on Gojek. Due to the huge customer base and popularity of this super app, everyone wants to grow their business and open new streams of revenue. Gojek takes a small commission from the retailers on each order that they get. This commission is automatically deducted from the retailer’s wallet when they hand over the product to the delivery guy.

    Commission from Drivers:

    Drivers and delivery partners also need to pay Gojek a commission of 20% on each order delivered. This is a smart strategy since it encourages drivers to deliver more products in order to gain profit.

    How Did Gojek Destroy Uber?

    In the beginning, when Gojek started its ride-hailing service its biggest competitor was Uber which had already earned its name in the market. Although Uber wasn’t able to capture the market and its newly arrived competitor Gojek grew both its customer base and profit.

    What is one thing that allowed Gojek to beat Uber?

    Gojek was able to beat Uber because the company had studied the local market of Indonesia in detail. The company had understood most of the cities in Indonesia has a huge traffic jam. In this condition, using cars to deliver passengers won’t be a smart decision.

    To avoid traffic jams and speed up their process Gojek started using scooters and motorcycles. This made the transportation service of Gojek much more convenient and hassle-free.  On the other hand, Uber’s business model was purely revolving around cars which made it impossible for the company to grow.

    Another advantage of incorporating scooters and motorcycles in their business model was that it was much cheaper for people to buy two-wheelers than a four-wheeler. This helped Gojek to get a huge amount of drivers.

    After that Gojek transformed itself into a super app which further helped the company to capture the whole market.

    Conclusion

    The business and revenue model of Gojek taught us that we should always understand the target audience’s needs and behavioural patterns. We should also study the local market in great detail. These two things will allow you to build a powerful business model.

    Gojek understood that most of the cities in Indonesia have a lot of traffic congestion. So, when the company started its ride-hailing service it started using scooters and motorcycles instead of cars to avoid traffic jams. This made the company’s services more premium and attractive.

    After that, they started giving a wide variety of services to acquire more customers. Gojek is successful today because they have simplified the customer journey and made their services top-notch.

    Remember, when you provide quality services to the customers your business will automatically grow. You should always try to innovate and aim to make the lives of your customers easier and happier.

    FAQs

    How does Gojek operate?

    Gojek follows a super app business model where they provide a wide range of services like paying bills, booking movie tickets, ordering food, buying groceries, booking a four-wheeler or a two-wheeler taxi and much more on a single platform.  Gojek operates with 3 people in its business model: Consumers, merchants and drivers.

    How does Gojek make profits?

    Gojek earns profits by taking commissions from its consumers, merchants and drivers. Consumers need to pay a service charge of 10% of the order. While the drivers receive a commission of 20% on each order delivered.

    How does Gojek make profits?

    Gojek focuses on bikes and scooters instead of cars to avoid traffic jams and speed up their process.

  • 10 Characteristics That Attract Investors to Invest in Your Startups

    The article is contributed by Mr. Saarthak Bakshi, Chief Executive Officer (CEO) of the International Fertility Centre.

    Mr. Saarthak Bakshi is recognized as Forbes 30 under 30 ASIA, 2017 for HealthCare and Science. He is known for his persona as an engineer, an entrepreneur and a social worker. He flourished his career by working with reputed companies – Infosys and Ernst & Young – as a Software Engineer and IT Risk and Assurance Analyst respectively. He soon realized that he has an inborn passion for entrepreneurship and went on to launch a slew of ventures including IFC.

    As we know that starting a business can be expensive. We may have less cash in hand to get started without some outside help but sometimes, it is important and beneficial to have investors in your business. It gives you a sort of security. Investors in your business are different from lenders. Instead of monthly repayment like lenders, investors give you money in exchange for ownership of part of your business. Apart from money they can also be an important source of business-related advice and strong business networks, which you can utilize for your own business. Therefore, it is important to draw the attention of the investors to make their decision firm to invest in your business. Most important thing is that investors want to see a return on their investment. They make money by putting their money into the growing business. Therefore, how to woo them plays a crucial role in the success of any startup. It is not necessary that every investor looks for the same things but still there are chances of commonality.

    So, here are ten points to make the investors interested in your startup.

    1. A passionate business proposal
    2. A market-oriented deal
    3. Demonstrate your success rate
    4. Competitive advantages
    5. Have an emotional approach with logic
    6. A strong team
    7. Experience
    8. The investment structures
    9. A scalable model
    10. Future vision and planning

    A passionate business proposal

    Having a passion for their startup is easy to be found in new business founders.  But how your business will help the investors to gain profit is a deciding factor for their interest. They want your confidence justifying that it is an improvement over existing products or is a new way to address an old problem. You should demonstrate your firm belief and confidence in your business.

    A market-oriented deal

    It is one of the important points that to pitch potential investors, familiarity with the market is generally the safest option. Startup investors look for opportunities in sectors that fit their interests and expertise. They already have an idea of how businesses become profitable in this industry and what it will take for your business to yield a return on its investment. Thereafter reviewing and organizing your proposal, go for the market research to pitch in a suitable investor.

    Demonstrate your success rate

    A track record of previous success is critical to attracting the interest of investors who can take your venture into your business. Most of the time successful startups are a rarity, therefore it becomes difficult for inexperienced entrepreneurs to convince the investors to lend their capital. But, if your business can captivate the market and the customers and if your track records give a guarantee of success, then you have a fair chance.

    Competitive advantages

    Most of the time investors look for satisfactory answers to the following question: What makes your product/service unique? There must be something about your product that sets it apart. If your product and you’re the first to the market, then it’s the best thing. However, most startups are entering existing marketplaces. What then makes you different? And how affordable it is in comparison to the already existing quality?

    Have an emotional approach with logic

    Whenever you are pitching with your investor, you must hit them on both emotional and business fronts. Include a story with your plan. Make it appeal to real-life scenarios and how your idea will solve the problem. At the end of the day, investors look for founders who have passion, motive, and experience to create a profitable as well as a sustainable business. It is not a matter of only ideas or concepts, the investors look to invest in you and your team and their ability to successfully execute your business plan.

    A strong team

    If you have a competent team, you have the attention of the investors. Show them that your team is intelligent, strategic, successful and follows strong financial discipline. Show them the qualifications of each member and what they bring to the business. Having a team that is knowledgeable, willing to learn and can handle multi-responsibilities are all positive traits that will impress your investors.

    Experience

    Experience can play a convincing role in winning over investors. If your team members have prior experience in their respective fields or have been involved with a startup in the past, it shows that you and your team have knowledge of your market and are tenacious enough to complete goals.

    The investment structures

    You should have a clear business structure in place that allows the investors to consider it and buy it. You should also plan for how the investment will work. In that plan, you must include, a clear valuation for your business and a stockholder’s agreement that clearly sets out the rights of all the owners.

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    A scalable model

    Build your business with scalability in mind. Most investors expect a return on what they are investing. Therefore, scalability is a major factor for successful startups and a great attraction to investors. Basically, scaling is known as adding revenue at a rapid rate while adding resources incrementally. The amount of resources required doesn’t change as your customer base increases, driving consistent growth and improving profit margins. Therefore, the plan of your faster revenue, makes the investor consider your startup dearly.

    Future vision and planning

    Give your investors a picture of your potential startup, that is where your company will be in the future and make them optimistic that you have the credibility to achieve your goals. Plan along the lines of where is your startup going? How do you see your startup in the coming years? Do you plan for the worldwide market? Etc.

    Conclusion

    Attracting startup investors to your company is necessary for your business. Therefore, you must put all the pieces in place to show that partnering with your business would be a smart move for them. Highlight the best parts of your startup and discuss your challenges with them openly. Investors will get on board when you demonstrate your best.

  • Top 5 C2C eCommerce Startups in India

    There are plenty of business model options available for startups. They choose according to their business field, work, and customers they want to engage with. Among such, the Customer to Customer (C2C) business model is quite prominent. In this business model, customers trade products with each other. This is majorly done through auctions and assessed advertisements.

    With the growing marketplace in India, many startups are pursuing a C2C business model. The C2C businesses combine with eCommerce technology and gather their potential audiences.

    C2C companies like eBay, and Amazon sell their products and services through a well classified or through an auction system. The customers generally purchase goods from another customer through a third party, where the transaction occurs.

    When it comes to India, there are dozens of companies that follow the C2C business model and many have adopted it lately. The eCommerce and online auction platforms specialized in the technology of the third party which stimulates the buying procedure. In this article, we will be talking about the top C2C eCommerce companies in India. Let’s get started!

    1. eBay
    2. Coutloot
    3. Quikr
    4. Olx
    5. Amazon

    1. eBay

    eBay C2C eCommerce website
    eBay website

    India’s leading online platform, eBay provides auctions, timely purchasing, and assessed models of trading from person to person. The company was established in 2006, headquartered in Goregaon (East).

    eBay offers a broad range of product marketing, categorized into dozens of lists including Apparel, Cars and bikes, computers, personal loans, health & beauty, antiques, jewellery, real estate, mobile phones, travel, and many others. eBay is listed out in ‘Top Websites in India’ with the ranking of 25th.

    2. Coutloot

    Coutloot C2C eCommerce website
    Coutloot Website

    Coutloot is a social commerce platform founded in 2015. It is widely known as India’s biggest offline and online social marketing platform that offers its customers the service of selling anything online to buyers with reasonable bargaining, across the country.

    Coutloot also provides documentation, cash on delivery, and logistics services to its customers. The company is headquartered in Mumbai, Maharashtra, India.

    3. Quikr

    Quikr C2C eCommerce website
    Quikr Website

    Quikr is a very prominent online C2C eCommerce marketplace, launched in 2008 that offers a series of posting and reacting to free local confidential ads of various kinds including Apartments, Pets, furniture, jobs, events, cars, housing, and others.

    Today, Quikr has expanded its services to more than 940 cities across India. The company is headquartered in Mumbai, Maharashtra, India. According to Alexa, Quikr is listed in the ‘Top Website in India’ at the 16th position.

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    4. Olx

    Well, Olx has made quite a strong presence in the digital market in today’s era. The company was established in 2006. Olx is known as the strongest and most popular consumer to consumers (C2C) based digital platform in India.

    Olx offers the service of selling, buying, and renting goods through free assessed advertisements from customers’ locales. You can buy anything including cars, bikes, furniture, mobiles, computers, apartments, electronics, and properties, digitally. Olx is ranked 32nd by Alexa.

    5. Amazon

    Amazon is an extremely popular and largest online retailer across the world. The most interesting thing about Amazon’s marketing is it operates both business consumers (B2C) as well as consumer to consumers (C2C) business model. Although the company is headquartered in Seattle, Washington, United States, in India, the company is known to be the biggest E-commerce company.

    Amazon has over 334555 employees with annual revenue of $221.60 billion. The company was founded by Jeff Bezos who has stepped down from the position of CEO of Amazon. It acquired around 83 companies such as Canvas technology, Blink, Pillpack, and Ring.

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    Conclusion

    There are tons of companies in the market that are shifting towards the consumer to consumers (C2C) model and getting great outcomes. Through this, the companies are improving their customer relations and developing more potential audiences. Especially the eCommerce companies opt for the C2C business model. And with such growing technology and marketing, C2C based companies are making enormous outcomes.

    FAQs

    What is an example of C2C in India?

    Some examples of C2C eCommerce startups in India are eBay, Amazon, and Quikr.

    What is C2C?

    C2C is a business model in which the customers trade with one another in an online environment.

    What is the difference between C2C and B2B?

    In a C2C model, the customers trade with one other while in a B2B business model the company concentrates on providing the raw data for another company.

  • The Future Of D2C Industry – Trends Lean Towards Data Analytics and Research

    The article is contributed by Shashank Jain, Co-founder, Strawfit (Bourgeon Foods LLP)

    Owing to a decade of technological advancement and the last few years of the pandemic, there has been a fundamental change in the way businesses and customers engage with each other. After the jolt that the traditional retail sector faced, there’s a rise in India’s currently growing direct-to-consumer phase, with D2C brands thriving as online channels have become the go-to destinations for almost every consumer. For those still struggling with the concept, Direct-to-Consumer, or D2C, is an emerging business model of a customised shopping experience where the product is provided directly to the customer by a business, bypassing any sort of middleman in between, hence being cost-efficient.

    With an estimated 700-800 D2C brands valued at over USD 100 billion by 2025, India is expected to be a hotspot for startups. A plethora of emerging service providers in India indicates the total addressable D2C market growth by over 15 times from 2015 to 2025. According to research by Statista, this total addressable market was valued at 33.1 billion U.S. dollars in 2020, which by 2025 was forecasted to grow almost threefold, making India a hotspot for startups. Currently, the segments that are growing at an ever-increasing speed in the Indian D2C market include consumer electronics and FMCG, with an expected worth of USD 43.2 billion and USD 30.8 billion, respectively, by 2025.

    The popularity of the D2C industry is booming and will continue to expand. To increase buyer-seller interaction, making purchasing more engaging, pleasurable, and long-term, brands in this space leverage certain market trends.

    Some of these trends that we recommend entrepreneurs in their operations are:

    ● Sustainable Manufacturing: Consumers are increasingly sceptical of brands that generate revenue through unethical business practices. Brands that are transparent about their business practices, from sourcing raw materials to manufacturing and supplying, generate more goodwill. Transparency creates trust, and people are more likely to buy from brands they trust. Brands that fail to build sustainability into their business models risk becoming less relevant to this new generation of consumers.

    ● Data Analytics: Until recently, brands had little access to customer data beyond surveys or third-party data. D2C enables brands to understand customers and their demands like never before, thanks to their continual personal connection with their customers through their experiences or surveys. Brands have realised that customer data is a powerful instrument that, when combined with analytics and technology, can be utilised to provide personalised experiences for customers.

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    ● Leveraging Social Media: Social networking is a strong tool for new businesses. Platforms like Facebook, Instagram, and Twitter can assist you in reaching an untapped worldwide audience and assist in developing a brand image in the market with existing competitors. Influencers have a strong and tailored hold on specific audiences, making them one of the newest and most powerful marketing tools. A product like a milk flavouring straw for kids, for example, can’t be directly promoted to them and is instead marketed to mommy bloggers and health bloggers. More than just following these trends, it takes a lot of work to create a solid revenue model for your business. Running a business at any stage of development is not easy. For this, it is essential to have proper planning. Here are some of the key takeaways that we believe can help these entrepreneurs make more informed decisions and develop more refined products, especially in the early stages of a business.

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    ● Bring forward a solution: Consumers are smart these days, searching for products that solve their current problems. The most common reason for a startup’s failure is a lack of market demand. You have a market need if your product solves an unpleasant, common, and repeatable problem for a large number of people. If not, then it can be easily overlooked by the customers.

    ● Focus on the product: The product you create is what makes up the face value of your brand and it’s a crucial task to make your product stand out in the market. Your main focus should be to at least give your product a competitive edge over the current competitors, so it seems like a convenient and better choice.

    ● Detailed Research: Before starting a business, thorough market research is essential. You have to research current trends, learn about the product, and understand its potential market and what your customers need. It also allows you to visualise your competition by telling you what other products and services like yours are available, customer reactions to them, their prices; etc.

    ● Financial Modelling: Managing monetary resources can be a tricky part that needs close attention. It is essential to have a well-developed financial model. From funding operations to having precise financial projections for the next few years, having a robust financial model is crucial for a business to grow. Don’t mind taking professional guidance to help you out with these things to avoid any major setback to your business.

    ● Keep trying and learning: Starting a business requires being inspired, motivated and willing to take risks. While every successful entrepreneur makes many mistakes, that doesn’t stop them from experimenting with their concepts and learning from their own and others’ mistakes. With that said, care also needs to be taken so that there is no undue waste of resources due to this experimenting.

    Conclusion

    With more people choosing to be independent buyers due to fading technological barriers, we believe that D2C is here to stay. It is an exciting time for entrepreneurs in the country to enter the market, especially with the boom in the startup culture. The times demand that entrepreneurs rethink how they interact with customers and their relationships with them. If played well, D2C can be the most powerful weapon a retail-based entrepreneur can hold.

  • The Business Model of Ambuja Cements | How Ambuja Group Makes Money?

    Owning a house is what every individual dream of. Giving abstract plans a rigid execution is all that is necessary for a beautiful structure. Thus, comes the all-famous Ambuja Group which has been helping people in doing so for years. The company has all the perks of understanding the Indian conditions. Therefore it never fails in meeting the expectations of people. Now, in the following sections, we will be discovering how the no.1 cement company has made it to the top.

    About Ambuja Cements
    Areas of operation
    Key Products and Services
    Target Audience
    Business Model of Ambuja Cements
    How does Ambuja Cement make Money?

    About Ambuja Cements

    Since its inception in 1983, Ambuja Cements has commenced its journey of providing the finest building materials. Suresh Kumar Neotia and Narotam Sekhsaria founded the Ambuja Group with significantly less knowledge of cement manufacturing. The company got its headquarters in Mumbai. With the blessings of the Holcim Group, Ambuja rules the position of the second-largest manufacturer of cement around the globe. With varieties of cement, Ambuja tries its best to meet every possible need that would erupt in the market. Let’s outline the highlights of the company.

    Market Share of Cement Industry (2020)

    Areas of operation

    There is no doubt that the founders, Suresh Neotia and Narotam Sekhsaria, were ordinary people. What made them extraordinary was their future-driven thoughts. Having realized that India is a progressively developing country, cement can play a crucial role shortly. Thus they gradually came up with this company. Ambuja pops up within a second where any lips utter about building materials. They are the first preference in the Indian market. This way, they are now well established.

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    Key Products and Services

    Ambuja believes that the enrichment of the community roots in the enlightenment of the people. Imparting knowledge about their construction materials and work procedures to the engineers has led to growth in the education of professionals in this field. Construction work involves height. Thus, Ambuja also ensures the proper safety of the workers. A humble deed.

    Coming down to the list of products, Ambuja presents its buyers with varieties of building materials suitable according to the respective terms. Including products like Ambuja cool walls, Ambuja builder, Ambuja composer and a few more in line besides its most famous product of cement.

    Target Audience

    Along with any person who wants to build a house, Ambuja, Being a provider of building materials, looks up projects involving construction. Speaking of this would involve all kinds of engineers, contracts of construction. Winning over the faith of these people would give the required hype and publicity.

    Business Model of Ambuja Cements

    Ambuja excels in its work to be the most competitive and successful company in its particular industry. And to back this up, there always lies a business canvas on the table of their rooms.

    Running a business always requires a broad mind with good observatory skills. Sticking to a single lane of making money won’t be helpful in every clock. Therefore business activities have to be executed. These activities include collaboration, partnership, and sponsorship. Doing these activities proves to be of great help for any company. Apart from this, the company also adds to its profits when a second company collabs their investment. It would also fuel the trust between the companies, which would be helpful in case of further investments or business crises.

    Ambuja is very good at letting people know about its products. The more, the better. So it always ensures that the people have instant knowledge the moment they lay an eye on any product. For this, Ambuja focuses mainly on advertisements. Its advertisements are well known to everyone. This does the work of attracting the needed buyers who are looking for such products. And obviously, with no shortage of storage capacity, it delivers the best to its customers. This way, another point adds up to their revenue growth.

    How does Ambuja Cement make Money?

    Being the leading producer has some perks. The tight net of their connection serves them a great deal when it comes to dealings and projects. After that comes the part where they are consistent. It is also because of their non-stop production. Ambuja, not depending on any sole source for funding or fuel, is always high on production. Thus the storehouses are never empty.

    Having a confined field to produce on, sometimes variety becomes one of the drawbacks. As already it has levelled up in the Indian market, it’s like the company’s only arena is the Indian market. Outside this boundary, the company is a helpless deer. Regarding the field, there’s always a step on competition which involves restless work all day, every day. Even the slightest ignorance can give the competitors enough window to overtake in business.

    GST plays a pivotal role in dragging the profit in business. And in India, as we all know GST is heavy in the market now. Moreover, the country is still developing. It has a great demand for cement where construction comes in. So towering a building that produces materials to build other infrastructures would have a long life. Hence if proceeded with seriousness, the company would make a lot of money, which is being made.

    However, an excelling company must have a vision of turning these weak spots into a rigid defense system.

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    Conclusion

    With various strengths, weaknesses, perks, threats, and harsh levels of competition at hand, Ambuja stands just as rigid as its logo. Muscular and unshakable. With the proper judgment of Indian business despite the competition with ACC, J.K Lakshmi, and Ultra tech cement, Ambuja is the all-time top. Therefore, with all its ways of ruling the cement industry, Ambuja today has earned its position in the market.

    FAQs

    When was Ambuja Cement Founded and by Whom?

    Suresh Kumar Neotia and Narotam Sekhsaria founded the Ambuja Group in the year 1983.

    Who is the CEO of Ambuja Cement?

    Neeraj Akhoury, appointed on the 21st of February 2020, is the present CEO of Ambuja.

    Where is the head office of Ambuja Cements?

    The Head Office of Ambuja Cements is located in Mumbai.