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  • Business Model of DMart | Why is DMart Successful than other retailers

    In an era where everybody seems to become a successful entrepreneur, it is the aptness of a business model that makes all the difference. The company should be able to realise the nature of their target customer to make the best out of the situation.

    Today the retail business is a very popular form of business among consumers. Here the company sell goods and services at a very low price through large distribution channels. In this form of business, a prompt understanding of the nature of customers is the most important.

    DMart is one such important player in the retail industry which has successfully garnered a top position despite being a latecomer. There is absolutely no doubt that it is the unique business model of DMart that helped it to have an excellent debut in the industry.

    About DMart
    What makes DMart unique?
    Slow and Steady Wins the Race
    FAQ

    About DMart

    DMart is a supermarket chain that is spread across 12 states in India. It is owned by Avenue supermarkets and was founded by Radhakishan Damani who is one of the most famous and successful value investors of the country, in the year 2000. It started with two stores in Maharashtra and is now a large chain of 176 stores that are spread across 12 states in India as of 2020.

    In the year 2017, the company went public with an IPO of Rs 1870 crore. DMart got listed at the price of Rs.632 and as of 15 July 2021 its average trade price is Rs.3316. The shares of the company have grown more than 60% in just four years.

    It is the sheer understanding of RK Damani about the market condition, the nature of the customers and the ability to have a very cordial relationship with the vendors that helped him and his company to get to the place that it is in now. He was successfully able to maintain a healthy attitude amongst the investors by adopting a very strong business model that ensured a healthy Return on Equity.

    Revenue of DMart across India
    Revenue of DMart across India

    What makes DMart unique?

    As mentioned earlier the uniqueness of DMart’s business model has helped the company flourish phenomenally to become one of the most profitable supermarket chains in the whole of India.

    Business to Consumer Model

    Those who have gone to DMart will be aware of the extremely low price of the products available. This is because of the business to consumer model that it has adopted. Here as the name suggests, Products are directly taken from the producers or the manufacturers and given to the end-user.

    Another reason why this method is successful is because of the nature of these goods. Most of them are things that we need on a day to day basis and hence the demand is consistent. It gives a lot of stability to the business as a whole.

    Cost Involvement and Utilisation

    It is well-known that any company will have to incur certain expenses for the smooth conduct of businesses. These include the cost of the location, salaries of the employees, expenses related to maintenance et cetera.

    DMart has efficiently crafted its business model in such a way that it finds opportunity in these expenses as well. Most of its stores are built on their own land which reduces their expense of rent and leases immediately. The rents being one of the highest costs for any retailer, its ability to open stores on their own land saves the firm from that obligation.

    There are absolutely no middlemen in the business of DMart. It ensures that they get the product for the best price and is directly given to the end-user which further helps them save a lot of money given as commission to these middlemen.

    Unlike most of the retail stores, DMart pays their suppliers within just 10 days instead of the usual 60 days. This not only makes DMart a special customer to the suppliers but also gives it more power for negotiation.

    Apart from that most of the employees are hired on contract. They are constantly trained for skill development and multitasking which saves the cost for DMart with regard to additional employment. This training ensures that the stores can be run smoothly with the existing number of employees.

    An efficient relationship with suppliers is a very important part of the retail business and RK Damani has aced this task too well. Due to his excellent relations with the vendors and suppliers since the beginning of the business, he is able to maintain an extremely efficient supply chain that helps him constantly restock their inventory on time.

    Knowing the Customer

    One of the most successful marketing strategies of DMart is its discounts and customers. There is absolutely no doubt that DMart thrives through word of mouth marketing. It is its best advertisement. Their discounts are ever-increasing and endless. Along with that, they have an inexhaustible availability of products which makes them a favourite choice among the middle class.

    The strategies of DMart is close-knitted with the innate nature of a common Indian who always looks out for the best price and is ready for a good bargain. RK Damani knowing the pulse of the customers successfully curated DMart’s business strategy in a way that suits both the customer and his business.

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    Slow and Steady Wins the Race

    Despite all the discounts and low prices, DMart continues to earn profits of more than 9 billion per year. They have never incurred losses in any of their stores since its inception 20 years ago. This is mainly because RK Damani and his team believe in moving slow.

    Unlike other competitors in the industry like Reliance retail whose expansion rate is over 714 stores every year, DMart opens less than 10 stores every year. They focus more on value retailing. Although the expansion of the stores in terms of number might look slow, there is no doubt about the survivability of the business in the long run.

    With their very focused vision and a carefully curated network of supply chain and engagement, there is absolutely no doubt that DMart will continue to flourish in the market in the coming years as well. The success of DMart is an example of the fact that being lean in business can also help you be successful and survive even in the harshest of market environments.

    FAQ

    What is the revenue of DMart?

    The revenue of DMart is 24,930 crores INR as of 2020.

    Who is the founder of DMart

    DMart was founded by Radhakishan Damani in 2002.

    Is DMart an Indian company?

    Yes, DMart is an Indian company founded by Radhakishan Damani and is owned by Avenue supermarkets.

  • Burger King – Branding & Marketing strategy [Case Study]

    Burger King is a very familiar name to Indians and even the whole world. This chain of hamburger fast food restaurants that operates in many countries have their headquarters in Florida. Burger King was launched in 1953 as Insta – Burger King. It was a Jacksonville, Florida-based restaurant chain. After the business ran into financial problems two of their Miami-based franchisees James McLamore and David Edgerton bought the company in 1954 and renamed it as “Burger King”.

    From then on Burger King has had four different owners till the next 50 years. During this bumpy ride it has had its own highs and lows where in the 1970s were known as the golden age as far as the Burger King was concerned.

    The growth of Burger King is something that all of us should closely study. From offering a basic menu of burgers, sodas, milkshakes and French fries, today it has an extremely elaborate menu with the Whopper being the first major addition in 1957.

    Since then they have continued to incorporate more and more dishes into the menu, some of them being successful and others not. Today they have 11 million guests every day across the world. It has become the world’s second-largest fast-food hamburger chain. They have an estimated 13,000 outlets in more than 79 countries across the globe. Out of these 66% of the outlets are situated in the US with nearly 99% of them being owned and operated privately.

    Their commitment to providing the best recipes, premium ingredients and cordial dining experience is what they claim to be the secret of their success in the last 50 years. This article will look at their branding and marketing strategy which is keeping them at the top throughout thick and thin.

    Rebranding of Burger King
    Burger King Campaigns that Changed the Game
    Burger King’s Advertisement Strategy
    Burger King’s Concern for Humanity
    FAQ

    Rebranding of Burger King

    Burger King as mentioned earlier was and still is one of the most famous fast-food chains in the world. It was rebranded after 20 years in 2020 with the revamped logo, unique uniforms and innovative packaging which were designed by Johns Knowles Ritchie – a creative agency. The one thing that they have done differently here is that they were constantly going back to their roots.

    With regard to the change in the logo as well they were in fact paying homage to the heritage of the brand. And they hope that this redefined design will be indicative of the confident, funny and simple firm that they are.

    Burger King Old vs New Logo
    Burger King Old vs New Logo

    Their simple rebranding techniques like the new logo, packaging that has the item names written onto it, the font of their text are well thought and researched decisions.

    Burger King new Packaging
    Burger King new Packaging

    They are aware that nobody is in fact looking forward to anybody’s campaigns and what they have to do is to pitch in their product amidst the things that people are doing. For this creativity is a very important factor and Burger King emphasises this like nobody else.

    Burger King Campaigns that Changed the Game

    If you have noticed all of their campaigns the one thing that they try to project is the credibility of the firm. They try to put it across to people that Burger King cares about its customers. For example, their award-winning advertisement in 2020 which was the “Moldy Whopper” campaign garnered a lot of attention across the globe.

    The idea was to prove to its customers that their food does not contain any preservatives. In this case, they took advantage of the very popular secret which accuses McDonald’s of their eternal burgers.

    Burger King really knows how to make use of the competition in the industry for their advantage. For example, there was another campaign titled ‘Whopper Detour’ that gave its customers their signature “Whopper” for one cent when they reach within 600 feet of any McDonald’s location.

    The campaign was such a hit that there were over 4 million downloads within October and December 2019. Exactly what they wanted. They not only took advantage of their competition but were also very quick to adapt to any kind of challenges, even the pandemic.

    When Covid 19 struck all industries, Burger King did not wait even a minute to launch their touchless technology in its restaurants.

    Burger King Touchless Technology Restaurants
    Burger King Touchless Technology Restaurants

    Another was a very daring step where they released an open request to McDonald’s asking for a collaboration of both of their dishes. As expected McDonald’s turned down their offer. But Burger King had nothing to lose and everything went as planned. As the news spread the sale of the company increased manifold times during that time.

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    Burger King’s Advertisement Strategy

    Burger King is not just concerned about the kind of advertisements and campaigns that they launch, they are also very careful about where these advertisements go. They concentrate immensely on local advertising such as roadside ads, hoardings, billboards etc.

    Burger King Billboard
    Burger King Billboard

    They make sure that each and every initiative that they plan for the customers are out there in public right in front of them. This is a brilliant way to encourage local customers to visit Burger King without even them realising that.

    They also ensure that the menu and all other possible details are appropriated to fit into the local desires and likings of the people. They have a highly differentiated targeting strategy to address the locally specific needs of the company.

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    Burger King’s Concern for Humanity

    Burger King has also contributed towards improving the plight of people who are not privileged. They have launched various campaigns in this regard which have also led to their popularity.

    “Have it your way foundation “ is one such campaign that mainly focuses on preventing diseases and eradicating hunger from every household. Their utmost care for people around them was widely appreciated.

    Along with it came the “McLamore Foundation” which gives scholarships to students who are interested and are also deserving. These campaigns have definitely added to the human side of the company which has also immensely helped in maintaining and even escalating its brand image.

    Conclusion

    There is no doubt about the increasing competition in the fast-food market at national and international levels. Despite that Burger King has successfully placed itself at the top of the market by being the second largest. Careful product placement, efficient advertisement, excellent customer relations and explicit humanitarian concerns are the main reasons why Burger King has been able to maintain its position in the last 50 years.

    If there is one thing that we can learn from Burger King’s marketing and branding strategy, it would be creativity and consistency.

    FAQ

    Who is the CMO of Burger King?

    Ellie Doty is the Chief Marketing Officer of Burger King.

    What is Burger King’s new slogan?

    The new slogan unveiled by Burger King is “Be Your Way”.

    Who is the founder of Burger King?

    Burger King was founded by James McLamore, David Edgerton in 1954.

  • Uber Business model: A Deep Dive into the Strategy and Innovation of Uber

    Did you know 17% of small businesses fail because they lack a business model? Entrepreneurs now are the time to learn about this amazing business model canvas, which will make that stress go away. Here, I have taken the real-life example of Uber for this business model canvas.

    About Uber
    Uber statistics in 2021
    Uber’s Business model canvas
    FAQ

    Brief introduction of Business model canvas

    A lean canvas and a value proposition are two sorts of business models. These are tools for validating company concepts geared for startups. Both originate from Alexander Osterwalder’s ‘business model canvas,’ which we’ll explore today.

    The primary distinction between the business model canvas and the lean canvas is that the business model canvas was developed for well-established businesses to track their efficiency and evolution through time. Startups are the most common users of lean Canvas for product launches.

    The business model canvas is popular among entrepreneurs. It’s a risk-detection tool that’s adaptable, intuitive, and value-driven. That’s why it’s commonly referred to as a one-page business plan. The canvas is divided into nine areas, each of which must be filled with specific company information.

    About Uber

    In the business realm, Uber is a well-known name. Millions of business owners and entrepreneurs have been motivated by extraordinary success, and the trend is expected to continue. This California-based ride-hailing service, which was founded in 2009, has ushered in a huge change by igniting the on-demand economy.

    From its humble beginnings, it has come a long way from a basic idea of allowing customers to hail a cab with a single tap to being the world’s largest ride-sharing firm. Uber currently controls over 68% of the total ridesharing market in the United States.

    Uber statistics in 2021

    According to statistics, Uber undertakes around 1.44 billion rides each quarter. Uber has raised $25.2 billion in fundraising, has over 100 million active customers, 4 million Uber drivers, and a net worth of $95.67 billion. So far, Uber’s success has inspired millions of business owners and entrepreneurs.

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    Uber’s Business model canvas

    The aggregator business model was first introduced to the world by Uber. It operates on a multi-sided platform business strategy that serves as a link between riders and drivers. Simply put, Uber has a two-pronged business model. While it enables clients to hire a taxi with a simple click, it also enables cab drivers to complete their rides on time and safely.

    Customer segments

    You must determine your most significant customer to whom you are providing value. The persona method aids in the creation of an imaginative portrayal of user categories. There are two types of Uber users: drivers and riders. Each one caters to a specific group of people that are interested in what Uber has to offer.

    The first group i.e. drivers are:

    • Full-time job seekers
    • Generate extra income
    • Love to drive
    • Looking for a flexible work environment

    The second group i.e. Users are:

    • Don’t own cars
    • Don’t know how to drive
    • Looking for comfort & luxury
    • Looking for cost-effective transportation services
    • Taxi haters
    • Travelers in a foreign place

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    Value proposition

    Each persona has unique challenges or prerequisites that your product or service can address, and you must specify these in the value proposition section. List as many jobs as feasible that correspond to the needs of your target customer segments.

    For drivers, it’s the ability to work flexible hours and earn more money, while for passengers, it’s the ability to pay with credit cards and cheaper prices. Decompose this part into specific chores to be done, customer pains and gains, and relate them to your product value using the value proposition canvas.

    Value proposition or benefits Uber offers are:

    To drivers:

    • Ease in getting started
    • Opportunity to earn
    • Ease in accessing more passengers
    • Flexible working schedules
    • Get paid online

    To customers:

    • Minimum waiting time
    • Reduced transportation costs
    • Cashless rides
    • Safety & security
    • Upfront pricing

    Channel

    The communication unit that entrepreneurs use to contact customer segments is referred to as a channel. If you offer your products through a website, that is one of your business model canvas channels. Search engines, social media, and even word-of-mouth marketing are examples of this.

    Uber’s channels include:

    • Website
    • Smartphone app (android & IOS)
    • Social media
    • Google Adwords
    • Media coverage
    • Word of mouth

    Relationship with customers

    The way you interact with customers is defined in this section. Customer interactions included follow-up and feedback after the sale. If you connect with users through a call center or a Chabot, specify it here.

    Uber maintains its customer relationship through:

    • Social media
    • Customer support
    • Rating, reviews & feedback system

    Revenue streams

    You must define the methods by which your company obtains funds in the revenue streams section. They’re usually derived from customer segmentation and value proposition mapping. Uber passengers, for example, use their credit cards to pay for their rides. Uber makes money by charging a commission for each ride. Other revenue streams could include billable add-ons, subscriptions, premium accounts, and so on.

    Uber’s revenue streams are:

    • Car rides per km/mile basis
    • Surge pricing
    • Brands like Uber X, SUV, etc.
    • Divisions like Uber Eats, etc.
    • Advertising & marketing

    Key activities

    Now comes the difficult part, key activities cover everything you need to do to make your company work with digital products. This entails continuous product development and marketing. Recruiting, advertising and other such activities are part of these operations.

    If you provide certain services, this may include information that can help you improve your capabilities. When filling the key activities portion of the business model canvas, keep in mind the other sections you’ve already completed.

    Uber’s key activities are:

    • Platform development & enhancement
    • Marketing & customer acquisition
    • Sales promotion
    • Hiring drivers
    • Customer support
    • Manage driver payouts
    • Communicate with customers, drivers

    Key resources

    The assets you require to run your organization at max potential are known as key sources. Uber is based on a sophisticated technological platform. It also needs drivers to support its value proposition. Staff and expertise are heavily relied upon by service-oriented businesses.

    Uber’s key resources include:

    • Network of drivers & riders
    • Digital platform (website & apps)
    • Technology talent
    • Advanced Algorithms & Data Analysis
    • Brand image

    Key partners

    You must define any external stakeholders who can contribute to your business in the key partner section. The development of tech platforms can be driven by Uber investors. Drivers can be hired with the help of recruiting partners.

    Uber’s key partners are:

    • Drivers
    • Investors & venture capitalists
    • Technology partners
    • Commercial partners
    • Payment processors
    • Map API providers
    • Lobbyists

    Cost structures

    You should be able to tell what you spend your money on based on your cost structures. If your enterprise grows, you must also mention future costs. This area includes expenses such as hardware procurement, software development, and rental services.

    Attributes that make the cost structure of Uber are:

    • Customer acquisition costs
    • Legal & settlement costs
    • Insurance costs
    • Research & development
    • Lobbying & compliance
    • Platform maintenance
    • Infrastructure cost
    • Customer support

    After you’ve created your business model canvas, the next step is to analyze it. You have a comprehensive view of what’s going on in your company and can spot bottlenecks. Make sure to share it with stakeholders so that the content may be improved. Also, don’t cling to the canvas’s original version as it is a flexible document.

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    Final thoughts

    Uber, like other successful startups, did not become well-known overnight. Their success may be traced back to greater business model innovation, which provides clients with better services at reduced prices. Almost everyone appreciates the services they provide. Uber has transformed mobility for billions of people across the world by arriving on time, conveniently, and safely.

    FAQ

    Who is the founder of Uber?

    Travis Kalanick and Garrett Camp founded Uber in 2009.

    Who is the CEO of Uber?

    Dara Khosrowshahi is the current CEO of Uber

    What is the revenue of Uber?

    The revenue of Uber was 1,113.9 crores USD in 2020.

  • Business Model of SpaceX | How does SpaceX makes money

    When it comes to life and Mars, what’s better than Elon Musk’s SpaceX? Yes, SpaceX is an absolutely dedicated space organization founded by Elon Musk. The work and agendas of SpaceX towards the exploration of space and manufacturing satellites and rockets for better communication during the exploration.

    Elon Musk founded this organization to complete his mission of bringing life to Mars. He holds the vision of bringing humanity to multiple planets in the universe. Besides SpaceX, Elon Musk also founded the extremely popular and successful Electric vehicle and clean energy company, Tesla. His compassion towards both of these prominent companies is Splendid.

    ‌‌SpaceX is the company that is taking aerospace manufacturing to a next level of evolution. The company manages all the aspects required for building rockets and satellites but also, keeps the finances superior over the contemporaries.

    Today, SpaceX is a well-established reliable brand that commercializes space-traveling, pretty affordable and fascinating. Although SpaceX is still a private organization, it manages to be incredibly successful in exploring space travel.

    With the immense success of SpaceX, people often wonder about the business model of the company. And that’s what we are discussing in this article. Let’s begin!

    About SpaceX
    What are the top launch facilities operated by SpaceX?
    Competitors of SpaceX
    Target Audience of SpaceX
    Business Model of SpaceX
    How does SpaceX make money?
    FAQ

    About SpaceX

    ‌‌SpaceX, the incredibly reliable brand which is officially termed Space Exploration Technology Corporation aka SpaceX. The company is an American aerospace producer as well as space transportation services provider, headquartered in  Hawthorne, California, United States.

    ‌‌Elon Musk founded this tremendous company in 2002, with the aim of minimizing the cost of overall space transportation and enabling humanity on Mars. SpaceX is known as the first-ever private organization that funded the liquid-propellant rocket- Falcon 1, to reach orbit and successfully recover back.

    SpaceX is an enormous part of the space transport industry. The company transformed the industry by minimizing the cost of manufacturing a satellite or rocket and brought back the usage of boosters.

    ‌‌SpaceX is entirely based on three subtle offers, that is, Accessibility, performance, and brand status. These hold the biggest fraction behind the success of SpaceX.

    What are the top launch facilities operated by SpaceX?

    ‌‌SpaceX has achieved some remarkable success in the exploration and production of space transportation. The company operates the top four launch facilities, that are:

    • Cape Canaveral Space Launch Complex 40 (SLC-40)
    • Kennedy Space Center Launch Complex 39A (LC-39A)
    • Vandenberg Space Force Base Space Launch Complex 4E (SLC-4E)
    • Brownsville South Texas Launch Site

    Competitors of SpaceX

    ‌‌SpaceX aims to be the first-ever company to operate commercial space travel. The founder, Elon Musk sets the goal to colonize Mars. With its enormous success, the company has dozens of competitors in the market who are willing to finance space travel commercially.

    ‌‌The biggest competitor of SpaceX is Virgin Galactic by Richard Branson and Blue Origin by Jeff Bezos. However, SpaceX is backed by the government of the United States that’s why it ought to be on top.

    Target Audience of SpaceX

    ‌‌SpaceX entirely targets the government and few private companies across the globe. The establishment of SpaceX is based on bringing life on Mars, that’s why its ultimate goal is to serve the complete mankind with its mission of space travel.

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    Business Model of SpaceX

    ‌‌The first-ever private company that gained the official license from NASA, for launching payloads and humans to space, is SpaceX. The company was founded by Elon Musk in 2002 that makes space travel absolutely affordable. SpaceX follows a very distinct business model along with bold successful strategies.

    Elon Musk believes that the only possible way to colonize Mars is to count on endurable and scalable transportation methods. SpaceX is growing tremendously and getting ready to carry people to Mars.

    ‌‌Since 2002, after the launch of the company, SpaceX has performed dozens of space launches. As of 2020, the company launched 26 missions. SpaceX combines a set of distinct sectors such as aerospace suppliers, manufacturers, subsidiaries, and distributors.

    SpaceX is working towards developing the next level of space transportation by reusing rockets in order to make traveling possible for people and cargo around the orbit of the earth. The achievements of SpaceX are contemplated as the first for any private company.

    How does SpaceX make money?

    ‌‌SpaceX is an extremely successful aerospace company that generates its money by shipping rocket missions to space and directing satellite plans for its clients.

    Last year, in 2020, SpaceX sent two NASA astronauts to the International space station through its reusable rocket, Falcon 9. This was known as the first-ever commercial manned launch.

    In fact, the company signed 15 different commercial missions, estimated to the worth $80 million per launch. The company would earn around $1.2 billion in revenue through this.

    ‌‌SpaceX aims to launch such a rocket that can carry civilians and travel them in Space. The ticket price for this is yet to be disclosed but the estimated value is above millions.

    ‌‌Moreover, SpaceX sells beta access to Starlink projects at the price of $99 per month with a one-time asset of router and disk at $499. The company has also aimed to expand its internet services to airlines.


    Conclusion

    ‌‌The Space Exploration Technologies Corporation, SpaceX has redefined the whole aerospace manufacturing and space travel transportation services and offers with its incredible technology usage. The company aims to make space travel commercial and minimize the total expenditure on manufacturing rockets and satellites. SpaceX is a globally recognized and well-established company with a distinct business model, which is surely beneficial for investing. Stay tuned for more updates!

    FAQ

    Who is the CEO of SpaceX?

    Elon Musk is the founder and current CEO of SpaceX.

    What is the valuation of SpaceX

    The valuation of SpaceX is $74 billion as of 2020.

    How much of SpaceX does Google own?

    Google owns around 8.33% of SpaceX.

  • Myntra: Subsidiaries And Acquisitions

    Myntra is India’s favorite shopping platform for customers who believe in quality over perfection. When we talk about fashion and online shopping, the first thing that comes to our mind is Myntra. Myntra in its initial days started selling personalized gift products to the largest fashion site in India. Along the journey Myntra acquired a lot of subsidiaries that helped in growing its business.

    Myntra – An Overview
    Myntra – Business Plan
    Myntra – Facts & Figures
    Myntra – Subsidiaries and Acquisitions
    Myntra – Other Acquisitions
    Myntra – Major Investors
    Conclusions
    FAQs

    Myntra – Bringing top-notch fashion with every click
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    Myntra – An Overview

    • Myntra, an Indian e-commerce fashion company is located in Bengaluru, India. The company was launched in 2007 to sell personalized gift items.
    • Founded by Mukesh Bansal along with co-founders Vineet Saxena, and Ashutosh Lawania. In its initial days, Myntra sold on-demand personalized gift items.
    • From 2007 and 2010, it mainly operated on the business-to-business model.
    • Myntra began selling fashion and lifestyle products and moved away from personalization in the year 2011.
    • By the year 2012, Myntra started offering products from 350 Indian and International brands that are more in demand in the clothing market.

    Myntra – Bringing top-notch fashion with every click
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    Myntra – Business Plan

    Myntra earns by following an aggregator model. The main business plan of Myntra is to buy the latest merchandise and selling it to the customers. Buying current season merchandise from several popular and quality brands, and making the product/item available on its website. The main earning of Myntra comes from the commission. Myntra follows the B2C (Business to customer) revenue model to generate revenue and increase its sales.

    Before discussing its subsidiaries and acquisitions, let us understand what is meant by Subsidiary.

    What is a Subsidiary?

    A subsidiary, subsidiary company, or daughter company is a company that is owned or controlled by another company, which is called the Parent company, Parent, or Holding company.

    The subsidiary can be a company, corporation, or limited liability company.

    When company A owns/acquires more than 50% of the voting stock of another company B, then in such circumstances company B becomes the subsidiary of Company A and obtaining control of its operations.

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    Myntra – Facts & Figures

    The Co-Founder of Myntra- Mukesh Bansal
    • Flipkart acquired Myntra in 2014 for a record-breaking deal valued at ₹2,000 Cr ($280 million).
    • At the time of acquisition by Flipkart, Myntra had a total of 1,50,000 products of over 1000 brands, catering to over more than 9000 pin codes in India.
    • Ananth Narayanan became the Chief Executive Officer (CEO) of Myntra replacing co-founder Mukesh Bansal in 2015.
    • On 10th May 2015, Myntra announced to shut down its website to solely focus on serving its customers through mobile applications starting from 15th May 2015. This decision resulted in failure.
    • Acknowledging the failure of the application-only model, Myntra announced to revive its website in Feb 2016.
    • Myntra functions and operates independently after the acquisition by Flipkart. Myntra still continues to operate as a standalone brand under Flipkart by solely focusing on fashion-conscious customers.
    Flipkart acquired Myntra in 2014

    Myntra – Subsidiaries and Acquisitions

    Below are the details of the acquisition and deal dates when the deal got finalized.

    Company Name Deal Date
    Online Services Pvt. Ltd. August 01, 2018
    Withdraw April 16, 2018
    20Dresses November 29, 2017
    InLogg April 19, 2017
    Jabong July 26, 2016
    HRX July 20, 2016
    Cubeit July 12, 2016
    Fitiquette April 04, 2013
    Exclusively November 09, 2012

    Myntra Acquisitions

    The Important and Deal breaking Acquisition under Myntra are:

    • HRX
    • Jabong
    • Fitiquette
    • Roadster

    Here, we’ve tried to mention some of the companies acquired by Myntra, their functioning, and operation under Myntra.

    Fitiquette

    The company is located in Sans Francisco. Fitiquette is the world’s first virtual dressing room platform that enables online shoppers to virtually try before they buy option. It provides an online shopping experience that is very similar to the offline model like buying from the stores.

    The technology used in Fitiquette shows virtual mannequins based on the body types of the users. This can further adjust the specific measurements of the users based on their body until it closely mirrors their own. The unique thing about this technology is that the clothing chosen is represented as the best fit based on a series of measurements. (Example. S, M, L, XL).

    Thus, the technology uses machine intelligence enabling it to offer a true-to-size, visual fitting experience. Fitiquette uses a patented technology that gives users a 360-degree view of the fit and drape of a garment based on their own customized selected merchandise.

    Roadster

    Myntra owns the fashion brand Roadster, Myntra’s outdoor lifestyle brand which was launched in December 2012. It generates close to 7% of the total sales.

    Myntra’s lead designer for the Roadster brand is the famous Vanni Lenci. Roadster has launched an all-new licensed Roadster MotoGP collection. It is the first Indian brand to enter into an exclusive collaboration with the world’s premier motorcycling championship, MotoGP on Aug 18, 2016.

    It is quite surprising that, despite having Deepika Padukone’s “All About you” and Hrithik Roshan’s “HRX” brands in its pocket, Roadster is the biggest moneymaker for Myntra.

    Pretr Online Services Pvt. Ltd.

    Pretr Online Services Pvt. Ltd. is India’s first-ever end-to-end omnichannel platform for retail. Pretr (prettier) was launched in 2016 by two technology executives Bhavik Jhaveri and Ankur Joshi. Pretr is currently operating from Mumbai, India.

    Pretr is a marketplace that provides a seamless shopping experience to customers. It is an efficient selling platform to Fashion & Lifestyle Retailers which include Esprit and Mango. Myntra’s own private labels such as HRX and Moda Rapido uses Pretr’s technology platform. This technology platform helps retailers with a bunch of services, including order management and store analytics.

    Jabong

    Myntra Subsidiaries Jabong
    Myntra Subsidiaries Jabong

    Xerion Retail Private Limited, also popularly known as Jabong, was a private company that was located in Gurgaon, Haryana. It was launched on 23 September 2011. It was classified as a private limited company. Jabong operated only on online fashion and lifestyle stores. It sold numerous products ranging from clothing, bags, shoes, sunglasses, jewellery, watches, and many more.

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    Jabong was acquired by Flipkart in July 2016 through its eCommerce unit Myntra for $70 million. Flipkart formally shut down Jabong in February 2020 to shift focus completely on its premium clothing platform Myntra.

    Myntra’s Parent company Flipkart Acquires Jabong

    Witworks Consumer Technologies Pvt. Ltd.

    Witworks Consumer Technologies Pvt. Ltd. is a consumer technology company operating and serving customers across India. Witworks is a maker of wearable devices to strengthen its technology team. The company manufactures wearable products like connected smartwatches, smart shoes, and intelligent clothing with biosensors.

    Myntra has kept its image in providing quality products and merchandise. Myntra has always focused on quality with perfection and has kept a steady customer service. Its business is well-maintained which has to lead to the first click to an online fashion destination. Myntra bought Bengaluru-based startup Witworks in April 2018.

    HRX

    Myntra Subsidiaries HRX
    Myntra Subsidiaries HRX

    HRX is a 5-year-old brand and platform based on a life philosophy to keep pushing. HRX is India’s first celebrity brand that was founded by Hrithik Roshan who is also the brand ambassador for HRX. It is also India’s first homegrown brand that solely focuses on the sports and active lifestyle space. The brand was founded by Hrithik Roshan and co-founders Afsar Zaidi, Kamal Punwani, and Sid Shah. HRX was acquired by Myntra, the online fashion store owned by Flipkart on Jul 20, 2016. It acquired a 51% stake in HRX.

    The company was formed by taking inspiration from Hrithik Roshan’s life. No matter how big adversity, it can be overcome with perseverance. It was created to inspire and guide billions of people. HRX main aim is to help people achieve their fitness goals. HRX is a mission that helps us enable and support people to be the fittest, happiest, and most confident version of themselves.

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    Myntra – Other Acquisitions

    • Myntra acquired Mobile app development company Native5 in April 2015 in order to strengthen and expand Myntra’s mobile technology team.
    • Acquired mobile-based content aggregation platform Cubeit, for strengthening its technology team in July 2016.
    • Myntra partnered with the Ministry of Textiles to promote the handloom industry in October 2017.
    • Acquisition of InLogg, a city-based technology platform that provides end-to-end logistics solutions for the e-commerce sector in October 2017.

    Myntra – Major Investors

    Some of the Major investors and Venture capital firms investing in Myntra are:

    • Accel Partners
    • New Enterprise Associates
    • Tiger Global Management
    • Sofina
    • Kalaari Capital
    • IDG Ventures India
    • PremjiInvest

    Conclusions

    Myntra is India’s favorite shopping destination where quality meets perfection. If you are the one who wants to explore more before buying, want quality products over price, and looking for well-designed products, then Myntra is the best option for you. Myntra has a huge variety of brands. You don’t need to worry about the quality of the products. As Myntra only focuses on quality and authentic products. The products go through a quality check where the products are thoroughly checked. Myntra’s revenue model is B2C (Business to customer). All the products are only available on Myntra’s platform. The products are genuine and are directly collected from the merchandise stores. Enjoy shopping from Myntra.

    FAQs

    Myntra is owned by which company?

    Myntra is owned by Flipkart. Flipkart is Myntra’s Parent Company.

    Does Myntra sell fake products?

    No, Myntra does not sell counterfeit products at all. Myntra is an aggregator and seller of products. If someone gets a bit downgraded product from any of the leading brands, consider it as the brand’s product only.

    Is Myntra good for clothes?

    If you are the one who wants to explore more before buying then Myntra is the best option for you. Myntra has a huge variety of brands.

    Why Myntra is expensive?

    The one things great about Myntra is – the variety and size availability. They are also the market leaders and that’s perhaps the only reason for the pricing. People do buy at Myntra without even looking at other Portals.

    Is Myntra profitable?

    Myntra Designs revenue up 58% to Rs 1,719 crore, losses increase by 38% Walmart-owned online fashion retailer Myntra Designs Private Limited reported its revenues for the financial year 2019-20 as Rs 1,719 crore, a 58% jump since the last financial year.

  • Business Model of Patanjali

    When it’s Ayurvedics products, no one can beat Patanjali. The widely famous Indian consumer goods brand, Patanjali is known to be very promising to the Indians. Patanjali was founded by Baba Ramdev, who is considered the yoga icon, along with Acharya Balkrishna.

    Patanjali provides the manufacturing, distributing, and selling of incredible Indian household products. The most prominent thing about Patanjali products is that they are considered entirely natural, using the conventional methods of producing household products. Patanjali offers various consumer goods, minerals, herbal products, and Ayurvedic medicines.

    The company was founded in 2006 with an official registered office in Delhi, India. The company’s headquarter is established in Haridwar, Uttarakhand. Patanjali utilizes the best technological method together with conventional prescriptions of Ayurveda and produces absolutely promising and natural products. In this article, we will be discussing the most remarkable business model of Patanjali and its revenue generation methods. Let’s get started!

    About Patanjali
    Where does Patanjali operate?
    Key products of Patanjali
    Target Audience of Patanjali
    Business Model of Patanjali
    What is unique about the Business Model of Patanjali?
    How does Patanjali make money?
    FAQ

    About Patanjali

    Patanjali is known to be India’s multinational consumer products manufacturing company, headquartered in Haridwar, Uttarakhand, India. The company was established by Baba Ramdev and Acharya Balkrishna in the year 2006.

    Patanjali produces various household products including cosmetics, Ayurvedic medicines, and food products. Patanjali serves various other countries, especially in the middle east and other Indian subcontinents.

    Patanjali is known to be the fastest-growing FMCG company across India. As of 2019, the estimated valuation of Patanjali was around $35 billion (Rs. 3,000 crores). The annual turnover of the company is around Rs. 10,216 crores.

    With the incredible success of the Patanjali brand, various companies like Colgate, Godrej Consumer, ITC and others, are majorly affected in the market. Patanjali has experienced some very remarkable developments in the market and gained a huge loyal customer base.

    Where does Patanjali operate?

    The official registered office of Patanjali is established in Delhi, whereas its headquarters is in the industrial areas of Haridwar, Uttarakhand. The company serves many foreign countries as well, especially in the Middle East and the subcontinent of India.

    Patanjali has been remarkable with its products and services that’s why the company is growing more immensely towards its expansion in other countries.

    Key products of Patanjali

    Patanjali manufactures dozens of household products, categorizes them in various segments such as cosmetics, food products, personal care, beverages, and Ayurvedic medicines.

    Later in 2018, the company expanded its hands and took over the manufacturing of clothes also. It even opened a store for clothing in Delhi under the brand name, Patanjali Paridhan.

    Patanjali Paridhan Store
    Patanjali Paridhan Store

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    Target Audience of Patanjali

    Patanjali entirely focuses on targeting an immense Indian audience. The company provides goods at very low pricing and the influence of Baba Ramdev over the general public, promotes the Patanjali brand more vibrantly. Patanjali targets its audience entirely, without any sub-categories.

    Business Model of Patanjali

    The business model of  Patanjali is based on the FMCG model. The company manufactures herbal and minerals based products and sells them in the market at some very affordable prices. Patanjali holds a huge network with people in its yoga and Ayurveda sector.

    The Yoga sector has around 5 lakh branches and 5 lakh mentors in them for its Patanjali Yoga Samiti. Along with this, Patanjali’s consumer goods company gains immense profit. Patanjali has always been upfront for promoting and guiding people for yoga, it even organizes yoga-based camps across the country. Its Yoga network is pretty huge, which brings out great benefits to the goods brand.

    Patanjali Yoga Camp
    Patanjali Yoga Camp

    Patanjali’s business model is quite similar to the other FMCG-based companies, where they manufacture the products and sell them. But in comparison to other FMCG companies, Patanjali has experienced incredible growth.

    Patanjali has made some remarkable marketing strategies that bring out great outcomes. Now, as we got the idea of Patanjali’s business model. Let’s move forward to how this business model is beneficial and unique for the company.

    What is unique about the Business Model of Patanjali?

    The most significant thing about Patanjali consumer goods company is that the company is built to provide quality to the customer and not engage with the burden of profit. Patanjali offers products at a very low price as compared to any other FMCG company. The company manufactures its products with the accurate raw materials obtained from the farmers in order to minimize the production cost.

    The distributors and the retailers find very low profit through Patanjali products. That’s why Patanjali establishes its retail outlets in various cities and towns.

    Patanjali sells products from all categories under just one brand, this saves the extra promotion and advertisements cost.

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    Revenue of Patanjali Ayurveda across India
    Revenue of Patanjali Ayurveda across India

    How does Patanjali make money?

    As being an FMCG company, Patanjali also manufactures the product and sells them. But aside from this, Patanjali has a huge loyal customer base with great marketing strategies in hand.

    Patanjali increases its sales and revenue through the means of credible existence in the target base. Patanjali sells its products at some pretty low prices that bring out more reach and sales for the company.

    Patanjali holds a very effective revenue generation method through its huge loyal customers base along with an absolutely affordable cost structure, obtaining various marketing tactics. Moreover, the company includes several distribution strategies including:

    1. Patanjali Chikitsalaya: Doctors checkup the health of patients without any charge and recommend Patanjali’s Ayurvedic medicine.
    2. Swadeshi Kendra: The outlets of Patanjali where you can find all the household and non-medicine products.
    3. Patanjali Arogya Kendra: Yoga experts guides for yoga exercises and fitness tips and training for the customers. Also, they suggest various Ayurvedic medicines.

    Conclusion

    Patanjali is a remarkable FMCG-based company that manufactures incredible household products with great quality at very reasonable pricing. Patanjali prioritizes quality at the top and with such a huge loyal customer base, the company receives great outcomes. Patanjali has been in the market for over 15 years and in these years, the company has experienced incredible success and growth graph. And with time, the company is all set to achieve more heights.

    FAQ

    What is the revenue of Patanjali?

    The revenue of Patanjali is 30,000 crores INR in 2021.

    Who is the CEO of Patanjali?

    Acharya Balkrishna is the CEO of Patanjali.

    When was Patanjali founded?

    Patanjali was founded on January 2006 by Ramdev and Balkrishna.

  • An Insight into the Business model of Quora

    Quora is a very popular question and answer platform that has evolved much before voice assistants and artificial intelligence developed into becoming a very common feature. Sustained and developed by real humans who answers the questions raised, Quora is indeed a unique one in the industry.

    This Q&A platform was launched by Adam D’Angelo and Charlie Cheever in 2009. They were former Facebook employees. Initially, it had no revenue until 2014. But today this social media network that flourishes with questions and answers have an estimated value of $2 billion.

    With an aim to have a three-digit growth rate, the sole motive of Quora is to generate high-quality answers to the questions that are asked by its users who run into millions. Over the years Quora has become a very reliable platform for getting answers regarding almost all the niches that exist. In this article, a glimpse of Quora’s business model will be looked into.

    About Quora
    Key Partners of Quora
    Key Activities of Quora
    Resources of Quora
    Business Model of Quora
    What is unique about the Business Model of Quora
    What is the Source of Revenue of Quora?
    FAQ

    About Quora

    When it was launched in 2009 it had no particular revenue earning source. However, its prevalence in the industry started to increase over the years and it subsequently got around $226 million from four funding rounds that were inclusive of 14 investors in 2014. As of 2018, it has reported $8 million in revenue and more than 300 million unique monthly visitors in 2020.

    Key Partners of Quora

    • Top Writers
    • Users
    • Media Platforms
    • Investors
    • Publishers
    • Online Businesses

    Key Activities of Quora

    The most important activity in Quora is answering questions posted by its users. The platform demarcates each question based on the topics. These umbrella topics are known as spaces and the users will get a chance to choose their space.

    Quora also categorises the feed in a very personalised manner depending on the interest and activities of the user in the platform. Various companies find it as a great opportunity to share their stand in a very detailed manner through these answers.

    Quora Website
    Quora Website

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    Resources of Quora

    Its major resource is its user base. They have a very enthusiastic community that asks questions and answers them. They have been funded by many investors through various stages of funding.

    One such popular funding which changes the game of Quora was that of 2014. As it further expanded to being a platform that promoted advertisements, companies that wanted to promote their products and services became a very important resource.

    Business Model of Quora

    Its very friendly user interface and educated consumer base have significantly helped in improving activities in Quora. Apart from random questions and answers it also allows business profiles to start accounts and make use of promoted answers.

    As mentioned earlier apart from the benefit of getting a platform to share their stand, they are also allowed to promote their brand in such a way that their answers come first. However, it is not in a dangerous manner. The users also have the right to like, upvote and comment on answers which will increase their reach and credibility.

    The reason Quora been very popular even after a long time since its launch is because of its wide audience base. It does not have a particular age group as the target audience. Their services are solely dependent on the interest of the user and customise their experiences accordingly.

    What is unique about the Business Model of Quora

    A unique factor about the business model is that one can observe a blend of both Facebook and Google in their methodology. It is similar to the models of Facebook because it allows you to afford like and comment on questions just like Facebook does and the similarity with Google is because of its mechanism to rank answers and the usage of algorithms. Like them, Quora also makes money through advertisements.

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    What is the Source of Revenue of Quora?

    They have text and image ads with which they began their advertising journey. It is one of the most used ad formats since it goes very well with the structure and texture of the answers. They make sure that their ads go along with the content that the user is reading.

    Ads on Quora
    Ads on Quora

    A person who is following a particular Space will be shown ads that are relevant to that topic. However, it may not be the case always. Many ads are also staged on this platform to increase the web traffic to their place.

    They charge for these ads in three different ways. The first one is CPA which is also known as Cost Per Action. Secondly, to get more conversions, they have another advertising strategy called CPC also known as Cost Per Click is made available for those who wants to get more traffic into the landing pages. Another one is CPM, which is the cost per thousand impressions. It targets those people who want increased impressions on their ads.

    Conclusion

    The factor that drew Quora to such greater heights and wide popularity is because of their vision to democratise knowledge in a way that is accessible to all. It is also completely crowdsourced and it thrives entirely on its user community. It is this mentality to share and grow that made Quora a social networking platform, a search engine and a very strong community that is as competent as Google simultaneously.

    One thing is sure from the business model of Quora, that it will continue to grow in future as well. This is mainly because of the fact that no technology can ever replace the uniqueness and capability of human beings. It is definitely an important takeaway from Quora to believe in yourself and understand that you are irreplaceable.

    FAQ

    Who is the founder of Quora?

    Quora is a question-and-answer website founded by Adam D’Angelo, Charlie Cheever in 2009.

    Is Quora owned by Google?

    No, Quora is a privately held company.

    How many visitors does Quora have?

    Quora has around 300 million unique monthly visitors as of 2020.

  • The Success Story of a 113 years old drink: Rooh Afza

    Did you know that there is a drink that is enjoyed by 1 billion people all over the world? No, I’m not referring to water. Okay, I’ll give you a hint: it’s red, and it’s over 100 years old. It is consumed in Pakistan, England, New Zealand, India, France, Germany, and many more European countries. I’m referring to Rooh Afza, of course.

    Both millennials and baby boomers are aware of this beverage, and they all have distinct perspectives on it. But the point is that we all grew up with Rooh Afza, and it has since become a significant part of our life.

    Rooh Afza is India’s favorite soft drink. It originated from Pakistan and is initially exported to Dubai, then imported to India. It has been rooted in our culture. Rooh Afza appears in a variety of media, including films, advertisements, and books. Rooh Afza is the companion to khajoor, the ultimate falooda topping, and now a carbonated drink as well.

    How did it last so long in such a highly competitive market? To answer this, I’ll tell you about Rooh Afza’s remarkable past.

    History of Rooh Afza
    Designing the logo of Rooh Afza
    The role of the partition in Success of Rooh Afza
    Significance of Rooh Afza during Ramzan
    FAQ

    History of Rooh Afza

    It has a long and fascinating history. Why you might wonder? Well, the reason is this beverage was created before India got its freedom. It has been around since 1907, making it more than 113 years old. Hakeem Abdul Majeed came up with the name “Rooh Afza” for a drink he created at a Dawa khana (in Old Delhi).

    It was intended to protect people from heatstroke and dehydration during the hot summers of India. In a nutshell, a drink that improves your immune system. He researched a lot into the field of Unani medicine and came up with this drink that eventually gained momentum. But it didn’t have a communal angle, meaning it wasn’t a “Muslim” drink but a drink for everyone.

    Designing the logo of Rooh Afza

    Apart from the kings of Delhi, Rooh Afza became a part of their samurai for rulers throughout India. Hakeem then decided to market this product. Hakeem asked Mirza Noor Ahmed to create the Rooh Afza logo in 1910. This therapeutic heat buster is made out of extracts from rose, kevda, carrot, spinach, and wine-soaked raisins.

    Rooh Afza Logo
    Rooh Afza Logo

    The logo was designed keeping in mind the ingredients used. That logo is still the same. However, because the printers in Delhi were not advanced at the time, they decided to print the logo in Bombay simply to ensure the colors were correct. Rooh Afza rose to prominence in Delhi in 1915, particularly within the Muslim community.

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    The role of the partition in Success of Rooh Afza

    Rooh Afza was a huge success. However, in 1947, when India was partitioned and Pakistan was formed, the story of Rooh Afza became much more intriguing. The split ushered in the world’s greatest forced migration. It was a horrible situation. But a border could not block a wonderful idea.

    Abdul Majeed’s eldest son chose to remain in India, while his younger brother traveled to Karachi to start a new Rooh Afza plant where he started producing Rooh Afza in a two-room rented house.

    Fun Fact: Hakim Said and his small team utilized old bottles and affixed the labels separately when Rooh Afza was only a startup.

    New bottles for Rooh Afza were designed in Germany after a few years. Initially, glass bottles were used, but subsequently, plastic bottles were developed. Hamdard Laboratory was set up in Pakistan, and it soon became the country’s favorite beverage.

    The partition of India was not only a separation of territory but also a division of families as well. However, we should be grateful that ideas like Rooh Afza did not completely vanish in India.

    This Indian brand grew into a global one. More than half of the syrup market is now controlled by Rooh Afza. Rooh Afza is so popular that when the lockdown was implemented in 2020, it was designated as a necessary commodity. This therapeutic heat buster is made out of extracts from rose, kevda, carrot, spinach, and wine-soaked raisins.

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    Significance of Rooh Afza during Ramzan

    During Ramzan, the value of this drink rises to a new level for all of us. After a long day of fasting, this syrup in cold water is precisely what you need. During Ramzan in 2019, India was running out of Rooh Afza. People from Pakistan aided in the transport of this history-infused drink to India at the time.


    Our rivalry is frequently featured in the news. But this story is about friendship. Although the bottle of Rooh Afza is from Pakistan, the components for this recipe are from India. So in short, I think it’s okay to refer to Rooh Afza as “our” drink.

    Final thoughts

    Isn’t it sad that whenever we go abroad and meet a desi guy we feel “This is ‘our’ man” but living in the same country draws us apart? I get it British tore us apart just so they could show their supremacy but that was a long time ago.

    Today, whenever Pakistan loses a cricket match to India we mock our Muslim friends. Rather we should respect diversity and understand each other as other nations always benefit from our disputes.

    All of us must look beyond this bottle to discover the history contained inside it. Perhaps we all need to realize that there are some wonderful things that we share. Maybe all of our disputes can be settled over a drink, as Mahatma Gandhi rightly said, “Even if the whole of India, ranged on one side, were to declare that Hindu-Muslim unity is impossible, I declare that it is perfectly possible “.

    FAQ

    How old is Rooh Afza?

    Rooh Afza is 113 years old when Hakim Abdul Majeed started the company Hamdard in Delhi in 1906.

    Who is the founder of Rooh Afza

    Hakim Hafiz Abdul Majeed founded Rooh Afza in 1906.

    What is Rooh Afza made of?

    Rooh Afza is made out of extracts from rose, kevda, carrot, spinach, and wine-soaked raisins.

  • Google Business Model | An Insight on How Google makes money

    Me: Ok Google what’s the best TV show?

    Google Assistant: That’s not a question. It’s F.R.I.E.N.D.S.

    Just kidding Google might not say that, I’m just a F.R.I.E.N.D.S. fan. We all have different preferences and I respect that.

    We all use Google for a variety of purposes, including shopping, keeping up with new web series, assignments, and projects, among others. It provides you with the most relevant search results at no cost. So, what makes this a tech behemoth? Is there some sort of magic that allows them to make money? The answer is they operate on a hidden revenue model and there is no magic trick.

    In a hidden revenue model, customers aren’t charged for Google’s services; instead, businesses pay for advertising to reach their target audience.

    We’ll go over it in more detail later, but first, let’s look at how Google came to be.

    Google Insights
    Business Model of Google
    Revenue Model of Google
    Is Google safe to use?
    FAQ

    Google Insights

    On August 10, 2015, it was decided that Google would have a new public holding company called “Alphabet Inc.” Google and other bets (which includes Calico, Nest, Fiber, Verily) are among Alphabet Inc.’s many subsidiaries, but Google is the most important. Sundar Pichai, Google’s product chief, is now the company’s new CEO, while Sergey Brin and Larry Page, the company’s original co-founders, have taken over the job for Alphabet Inc.

    Business Model of Google

    Google’s business strategy is based on advertising. It relies on three key players i.e. users, businesses, and publishers. These players are intertwined. Let’s have a look.

    Users:

    Google’s USP is its feasibility. Google provides you with appropriate search results whenever you search for something. It can scan billions of pages for you thanks to its incredible search engine. You don’t even have to pay for the information you need. Isn’t it amazing?

    Businesses:

    Google makes money from two sorts of advertisements: search ads and display ads. Businesses pay a lot of money to get their products in front of the right customers.

    If you search for sneakers online or near your location on Google, it not only gives you relevant websites or stores but also offers you advertising linked to your search, which helps businesses identify their ideal target audience. When you click on an ad, the advertiser pays Google a particular amount. This is how they make money from search ads.

    The next type is display ads, in which Google can place ads on a variety of internet platforms such as Gmail, YouTube, mobile apps, and more, resulting in a more diverse source of revenue for them. In other words, they learn what their audience wants from these ads and display appropriate ads accordingly, which benefits both businesses and Google.

    Youtube Ads
    YouTube Ads

    Publishers:

    On Google, we notice a lot of blog pages about skincare, health, fashion, and a lot more. Let’s assume there’s a fashion blog. Google will include ads (40% off at H&M) to capture your attention, and when you click on that ad, it will take you to that shopping website, where you will eventually buy something.

    As a result, Google, businesses, and publishers all benefited (for website traffic i.e. more views on that blog).

    Revenue Model of Google

    Take a look at this pie chart below. As you can see, ads are Google’s primary source of revenue. Google ads account for over 83.29% of its entire revenue. Google Cloud contributes 5.51% , Google others contribute 10.51%.

    Revenue of Google
    Revenue of Google

    You might be wondering how they make money from adverts alone. Are there any other divisions? Allow me to assist you.

    Detailed information about Google advertising revenue:

    Google Revenues
    Google Revenues

    This chart illustrates Google’s advertising revenue over the last three years, which has risen steadily from $95577 to $134811. What a jump in revenue! Now, what caused the dip from 86.5 to 83.9 percent? It means that if Google’s total revenue was $100 million in 2017, 86.5 percent of it came from ads alone.

    If Google’s total revenue was $100 million in 2019, Ad revenue accounted for 83.9 percent of overall revenue, while other revenue streams also contributed to the total. Nonetheless, 83.9 percent is a significant portion of total revenue.

    How do they get money from Google search and other sources (the first one)? The amount of money earned rises from $69811 to $98115. Let’s understand this step by step.

    Most of us have done online shopping at some point in time. You come out of that website after seeing a product you like, whether you buy it or not. The next thing you are doing is surfing and an ad appears indicating that you were seeking this item and that you intended to purchase it.

    This is where Google’s AI comes into play, as they analyze people’s purchasing habits and ensure that you don’t forget about the goods and that you buy them. This is how they show ads and make money from Google search ads.

    A skippable or non-skippable ad appears whenever you watch a YouTube video. Ads presented while watching a YouTube video generate revenue for YouTube, and because YouTube is owned by Google, a portion of that revenue goes to Google.

    Revenues are increasing for Google Network Members’ properties, as well. You might see AdMobs or AdSense in this section. I’ll give you an example for AdMobs. Assume I have an app and I enable the AdMobs functionality. Ads will begin to display on my app, generating income for Google, with a portion of that revenue shared with me. Similarly, AdSense comes into play if it’s a website.

    That is how they generate revenue from a variety of sources, such as Google search ads, YouTube ads, and Google network member ads, which all contribute to their overall revenue.

    Google Q3 update:

    Google Q3 update
    Google Q3 update

    People would have consumed a lot of content during the lockdown, which is why YouTube ad revenue and Google search revenue will also increase. That’s why, in 2019-2020, revenue increased by about 10%, from $24741 to $26338. It’s a significant increase from $3804 to $5037 for YouTube ads. All of these figures are in millions of dollars, so it’s a significant sum.

    If you sign up for a Gmail account, you get 15 GB of free storage (google drive space). When you receive more emails, upload more documents, or do anything else, the drive space fills up.

    Our mindset is to create a new or several Gmail accounts. Why would you want to pay for that? So if you pay for a Google Cloud or Google Drive subscription, you receive 2 TB of storage, i.e. you are paying rent to use their drive space, that’s how they make money.

    YouTube’s non-ad revenue is included in Google’s other. When you don’t want an ad to appear on YouTube, you can pay for a YouTube Premium. As a result, both YouTube and Google make money from premium subscriptions i.e. what it means by Google others revenue.

    Cost Structure:

    Two major costs are the Traffic acquisition cost and the other cost. Employee costs and a variety of other expenditures are examples of other costs.

    For Traffic acquisition costs, assume you’re an Apple customer who uses iPhones or other Apple devices. So, to acquire traffic, Google paid Apple to keep them as their primary search engine on their web browser, which is why it’s termed “Traffic acquisition cost” .

    Is Google safe to use?

    As Google accumulates more data, many people are concerned that their information will be exposed, putting them in danger. Even queries like what are the risks of using Google were raised. As a result, users may lose faith in them and would switch to other privacy-focused search engines. If Google does not take action, this could be a threat.

    Final thoughts

    When you look at Google’s business model it generates its revenue from multiple sources. They are distinguished by two factors: innovation and motivation. It functions not just as a business, but also as a research institute and a university.

    It has done an excellent job in its primary business while also giving back to the community and being environmentally conscious. Google has been acknowledged as the first corporation to be carbon neutral during its entire corporate history, according to a global sustainability study.

    In terms of security, I believe Google will be able to tackle this issue as well. Whatever the situation, Google has always been able to adapt thanks to its ability to innovate and take chances that no one else would ever take, in today’s business world.

    FAQ

    Who is the founder of Google?

    Larry Page, Sergey Brin founded Google in 1998.

    What is the revenue of Google?

    The parent company of Google, Alphabet generated almost $183 billion revenue in 2020.

    How does Google generates its revenue?

    Google generates its major revenue from AdSense and Ads.

  • Business Model of Treebo Hotels | How Does Treebo Hotels make money

    Treebo Hotels are well known for their tremendous facilities and services for its customers. With the advancing hotel budget network in India, Treebo Hotels are quite high on the list, closing a total of $34 million series in the C round.

    And it’s estimated that by 2021, Treebo Hotels will lay in more profit than ever. Treebo Hotels are backed by some very prominent investors SAIF Partners and Matrix India Partners.

    Treebo Hotels has experienced many ups and downs throughout the last four years which resulted in many lay-offs and fortunes plummet. Meanwhile, there was certain news in the market that Treebo Hotels are in acquisition deals with the Gurugram based Unicorn Oyo. That’s why Treebo Hotels spent around one year building a strong upholding strategy for the market that could bring the company back to its previous status and more.

    The strong deed that came out was reducing the cash burn and certain liabilities along with bold strategies for improving revenue sources. In this article, we have discussed the business model of Treebo Hotels, briefly. Let’s get started!

    About Treebo Hotels
    Where does Treebo Hotels operate?
    Key Services of Treebo Hotels
    Target Audience of Treebo Hotels
    Business Model of Treebo Hotels
    What’s Unique about the Business Model of Treebo Hotels?
    How does Treebo Hotels make money?
    FAQ

    About Treebo Hotels

    Treebo Hotels is a prominent digital hotel chain developed by IIT Roorkee graduates Sidharth Gupta, Rahul Chaudhary and Kadam Jeet Singh. Treebo Hotels aims for providing top-notch quality hospitality in a stated budget segment.

    The company focuses on the budget hotel sector by opting for a new well-organized hotel and taking that under the Franchise of Treebo Hotels. These become an official part of Treebo Hotel chains.

    The biggest competitors of Treebo Hotels are Oyo Rooms, ClearTrip, Fabhotels and MakeMyTrip.

    Treebo Hotels entirely manage all the aspects of hotels through advanced technology and look for the best revenue management and enhance the quality. With the growing hospitality industry in India, the customers get total facilities and can easily book any hotel under Treebo Hotels or Oyo with a minimum charge of Rs. 3,000 to Rs. 5,000. This offers the customers total hostel facilities without any interceptions.

    Where does Treebo Hotels operate?

    Treebo Hotels is a major part of India’s budget hotel chain that took over other hotels through Franchising.

    With the latest data of 2020, Treebo Hotels has established its chain of hotels in over 113 cities with around 600 hotels across India.

    Key Services of Treebo Hotels

    It often becomes very tough in finding the right suitable hotel with fresh toiletries, clean rooms and affordable basic breakfast service. A middle-class always suffers in finding this at a reasonable price. And that’s where Treebo Hotels comes in.

    Treebo Hotels provide great customer services and manage the basic requirements of the customers at their convenience. It provides exclusive hotel choices at very reasonable prices and with covering all aspects of the requirements.

    Target Audience of Treebo Hotels

    Treebo Hotels compete with the biggest hotel services of Oyo Room and FabHotels. Oyo is backed by SoftBank while FabHotels is backed by Goldman Sachs and these hotel services are extensively popular.

    On this note, Treebo Hotels in its mid-to-premium segment targets corporate customers and especially middle-class customers.

    Business Model of Treebo Hotels

    Treebo Hotels believes in branding rather than aggregating a marketplace. Their business model is franchise based. Treebo Hotels looks for the most suited hotel with good service and keeps up the standard of their brand. They communicate with the owners and offer great customer acquisition channels, branding, management software and many more.

    It charges around 40% of total revenue per cent from each hotel, which is quite high.

    Treebo Hotels works through the mid-segment hotel industry and for that, a strong complete business model which holds the operational capabilities has become quite a necessity.

    Treebo Hotels is looking for all aspects that can be covered in order to build a strong market upholding. And in the upcoming years, it is expected to grow more extensively.

    What’s Unique about the Business Model of Treebo Hotels?

    With most of the successful hotel services companies, look for a few hotels and sell them online. This makes them no different from MakeMyTrip or any other travelling company. However, Treebo Hotels offers the entire hotel services while covering all aspects of the requirements.

    Customers often get upset or angry with the poor services by many hotels. But, Treebo Hotels offers great customer service and experiences.

    Treebo Hotels is a Hotel Brand, not an aggregator and that’s why it is known to be the largest budget hotel chain across India. Treebo Hotels offers different locations in different cities at some very reasonable prices.

    Good hospitality is very necessary for greeting the customers. And India greetings are more important than anything. Treebo Hotels offers such hospitality in their hotels.

    How does Treebo Hotels make money?

    In the past few years, Treebo Hotels experienced some major losses up to Rs. 114. 94 crore. That’s why from next year, 2018, Treebo Hotels increased its cash burn by 80 per cent and doubled the revenue growth. Treebo Hotels is now focusing on the immense profit deals by 2021.

    Treebo Hotels operates the franchise model that’s why its major source of revenue is the hotels that come under the Treebo brand.

    In the last funding round of Treebo Hotels, it raised around $23 million which includes the $17 million series B.

    Treebo Hotels charges around the range of INR 1,000-3,000 per night with the best facilities of clean linen, free WiFi, bedding and other things. The annual revenue of Treebo Hotels as of 2019 is USD 11.7 million.

    Conclusion

    In the hyper-competitive market, Treebo Hotels are building their strong upholding. However, it experienced a major loss in past years but now, with advancing technology and services Treebo Hotels are stabilising their position.

    Developing a strong technical on-ground operation is very important in this sector to bring consistent experience for the customers. This is known as the capital intensive business which requires funding and great effort to establish. And Treebo Hotel is quite prominent among the members of India’s rising budget hotel networks. Stay tuned for more updates!

    FAQ

    Who is the founder of Treebo?

    Treebo Hotels is a budget hotel chain founded by Sidharth Gupta, Rahul Chaudhary, Kadam Jeet Jain in 2015.

    What is the revenue of Treebo Hotels?

    The estimated revenue of Treebo Hotels is $9.7 million as of 2020.

    When was Treebo founded?

    Treebo hotels was founded in 2015 by Sidharth Gupta, Rahul Chaudhary, Kadam Jeet Jain.