Thursday, December 10, 2009

Efficiency is the name!

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One of my friends recently tweeted about a particular article. It was about a business in India. Some unique things about it were:

  • it didn't need millions to start this business, just some ingenuity on the part of the entrepreneur
  • it wasn't based on new products or inventions
  • it was closely connected to people's lives
  • it was uniquely Indian (where else would people wait to know when the water would come?)
  • it was simple - simple enough that you don't need an MBA to figure it all out
  • it doesn't need too much to run on, leaving the company to concentrate on expanding its business - lesser maintenance costs per customer
  • it takes advantage of the perks of other companies - For eg, this company (in the current model) would fail if the cell phone companies decide to charge for incoming SMSes; but the cell phone companies wouldn't do it in the near future for their profits still depend on these freebies.
  • it combines technology to what people basically need
  • it uses local resources (read, finding local unemployed youth to run the franchise) - lesser relocation costs and upkeep costs; add to it happier employees (as they don't have to relocate without families) who come with their own network that they can put to immediate use (their personal network - family, friends, etc) and you've got a solid deal for so less.
  • it doesn't need to train employees much (except for the basics)
  • it is not dependent on finding employees with special talent or degrees - if one employee quits, they can always find another; finding an unemployed youth who is ready to do this in their own town/village for such less a cost is not too hard
  • it fosters entrepreneurship - even if 1% of franchise owners decide to do more on their own, then entrepreneurship has grown - and that is something India needs!!
I could go on and on about this business, but I'll leave the rest to you guys! In one word, this business is effficient. They've taken care of the basics of any business, leading to a very successful business model. What are your thoughts on it?

1 comment:

Aths said...

It's interesting that quite a few companies succeed on the simplest of mantras, with very little resources and by employing local youths. India has quite a lot of such businesses, and these models have been around for many years. Rather than going global and recruiting people with thick diplomas and hefty paycheck demands, looking closer home and becoming "eco-friendly", sort of simplifies your business model a hell lot!