Category: Business Case Studies

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Business Case Studies

Transportation Landscape: A Deep Dive into the Uber Case Study

Uber Case Study
Uber Case Study

In the realm of modern transportation, few companies have managed to revolutionize the industry as profoundly as Uber. What started as a small startup in 2009 has grown into a global behemoth, altering how we think about getting from point A to point B. The Uber case study serves as a captivating tale of innovation, disruption, challenges, and opportunities that have reshaped urban mobility and ignited conversations on various fronts.

The Genesis of a Game-Changer: Birth of Uber

The story of Uber began with Travis Kalanick and Garrett Camp, two entrepreneurs who sought a more efficient and convenient way to hail taxis. Their frustration with the traditional taxi industry’s shortcomings laid the foundation for Uber’s disruptive concept. With the tap of a smartphone screen, users could summon a ride driven by an independent contractor, using their vehicles, at a competitive price. This seamless blend of technology and transportation marked the inception of the ridesharing era.

Disruptive Innovation Takes Flight

Uber’s ascent to dominance was meteoric, largely attributed to its innovative business model. By circumventing the need for extensive fleet ownership, Uber reduced overhead costs significantly. This, coupled with a real-time pricing mechanism based on supply and demand, created an appealing value proposition for both riders and drivers. As Uber rapidly expanded into new markets, it encountered resistance from traditional taxi services and regulatory bodies, setting the stage for legal battles and debates about the gig economy.

Challenges and Controversies

Uber’s rapid growth was accompanied by a trail of controversies. Critics raised concerns about driver working conditions, passenger safety, and the potential implications for the broader transportation ecosystem. The company faced backlash for inadequate background checks, surge pricing during high-demand periods, and a lack of accessibility for disabled passengers. Regulatory challenges also emerged as local governments grappled with categorizing and regulating this innovative business model.

Innovating Beyond Ridesharing

Uber’s innovative spirit extended beyond ridesharing. The company ventured into various other realms, such as food delivery (Uber Eats), autonomous vehicles, and even urban air mobility (Uber Air). The pursuit of self-driving cars led to partnerships and research initiatives, but it also faced setbacks after a fatal accident involving an autonomous vehicle during testing.

The Path Forward: Adaptation and Evolution

In response to criticism and challenges, Uber underwent significant changes. It began investing in safety measures, enhanced background checks, and initiatives to improve the driver experience. The company also worked on diversifying its offerings, incorporating electric and hybrid vehicles to address environmental concerns.

Lessons Learned and Future Prospects

The Uber case study offers several lessons for businesses and industries seeking to disrupt traditional models:

  1. Embrace Innovation:
    Uber’s success hinged on its ability to leverage technology to solve real-world problems, and this approach can be applied across sectors.
  2. Anticipate Regulatory Challenges:
    Innovators must be prepared to navigate regulatory hurdles and work with stakeholders to find common ground.
  3. Prioritize Safety and Ethics:
    Balancing innovation with passenger and worker safety is paramount. Addressing concerns head-on can help build trust.
  4. Adapt and Diversify:
    Markets evolve, and successful companies must be ready to pivot and diversify their offerings to stay relevant.

As Uber continues to evolve and adapt, its journey serves as a testament to the transformative power of technology and entrepreneurship. The case study of Uber underscores the potential for even the most entrenched industries to undergo radical shifts, with innovative ideas and perseverance at the helm.

entrepreneurs-Launchpad

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Business Case Studies Finance

71% Indians Expect Companies to Accelerate Digital Initiatives, Says Report

Online Business
Online Business

Bengaluru, October 29: A new report has revealed that about 71 percent of Indians expect companies to accelerate digital initiatives which means that the customer engagement is changing amid the COVID-19 crises. A report by leading Cloud software company Salesforce said that the Indian customers estimate 60 percent of their interactions with businesses take place online this year, compared to 47 percent in 2019. According to the fourth edition of Salesforce’s ‘State of the Connected Customer’ report, about 94 percent of customers said how a company acts during a crisis demonstrates its trustworthiness.

The global report is based on insights from over 15,000 consumers and business buyers across 27 countries, including 650 respondents from India. In India, 94 percent of customers said that COVID-19 has elevated their expectation of digital capabilities and 95 percent said the societal role of companies is changing.

The report adds that while a string of crises has affected all facets of life, including a fundamental shift in how customers connect with brands, factors like empathy, personalisation, convenience, and digital transformation are the keys to customer relationships. According to a report by IANS, as these same customers re-evaluate the role of business in society, the notion of stakeholder capitalism is increasingly factored into purchase decisions. Vala Afshar, Chief Digital Evangelist at Salesforce, said in a statement said that regardless of who they market, sell, or provide service to, businesses are navigating a landscape they couldn’t have imagined at the beginning of this year. “A massive shift to digital channels isn’t the only challenge that leaders have to grapple with”, he said.

“Connecting customers at various touchpoints — digital, human, or other — to gain a holistic understanding is the first step on the path to resiliency and growth. They also need to listen and respond to customer demands for empathy and understanding, innovative products and services, and a fundamental rethinking of the role of business in society,” Afshar said.

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Business Case Studies MSME

How Entrepreneurship Education Makes You Future Ready Entrepreneurs

In the past years, entrepreneur education has gained immense relevance. This knowledge helps future entrepreneurs to look for opportunities for them. We all know entrepreneurs are a very significant part of Indian economic growth.

With each passing day, jobs are getting limited, and when problems like COVID-19 happens then, job risks get double. With the growth of technological advancements and population growth, be your boss seem to the best option of all.

This education does not only contribute to economic growth but also creates many job perspectives. Therefore, pushing budding entrepreneurs for taking more programs in the field of entrepreneurship education results in many benefits for them in the end.

New Path of Success

As we mentioned, entrepreneurship education is relevant to budding entrepreneurs. It facilitates in developing entrepreneurial skills and knowledge that in future benefits for them only in bringing off their start-up.

This education helps in progressing to the entrepreneur industry-ready with the skills for future businesses and helps in contributing to the Indian-economy. This education helps you in walking a new route to success and growth.

Enhancing Basic Skill and Creativity

By providing entrepreneur education, you capture an understanding of essential life skills of an innovative approach to solving problems, learning to work with a team, and collaborating with people.  These skills can never be taught in the books as these are equally important for the development of an individual.

When you discover an innovative way to solve problems, then you open the door of creativity. By boosting creativity, innovation builds more effective for individuals facing the tough world outside the classroom.

Learn to Solve Problem

Finding out how to solve the problem and identifying it is two important points of learning and understand in the growing years. With years of practice and experience, one can get the skill of problem-solving. But it’s tough to identify the problem before it comes to you, and taking steps to solve it is different.

When you learn both skills of resolving problems and identifying, it creates you as a successful entrepreneur.

Building Leadership Quality

Leadership is the quality which the whole world needs. As a person, if you are interested in making a difference, then this quality will help you surely help in paving a different pathway. While learning about the skills of entrepreneurship, then you tend to incorporate skill and thinking like a leader.

And if you are a women entrepreneur, then this quality will help you to create your own identity in a world full of hurdles.

Making You Ready For An Uncertain Future

Uncertainty is something that you find in anything and everything. In unpredictable and dynamic times, you need to be ready and prepared for the future-ready. By learning the skill of entrepreneurship, you will have one door of the opening venture of your own.

The future is for people who have innovative and leadership skills. A simple entrepreneurship learning can emerge as a path changer and trendsetter in your future. This education is gaining huge friction every day and seeing changing time it can be a great benefit for you.

 

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Business Case Studies

How E-Commerce Marketplace is Redefining the Industry?

E-Commerce Marketplace

Introduction

  • What is E-commerce Marketplace?
  • What are its advantages and disadvantages?
  • Are you planning to take your business on the E-commerce platform?

India is the 3rd largest E-commerce market in the world after China and the United States of America, and in the next few years, e-commerce marketplace in India is set to surpass that of the USA.

What is E-commerce and How it Grows

It is the most innovative way of doing business without establishing any physical store around the world. It has seamless potential to “expand your business as swiftly as never before”.

E-commerce marketplace is an online platform to sell products to customers all over the world without any physical barrier around the clock.

It not only increases your sales but reduces cost drastically.

It helps you in:

  • Fast selling of goods and services.
  • Reach out to a huge customer base.
  • Less investment in marketing and sales promotion.
  • Fast supply chain and electronic funds transfer mechanism.

Advantages of E-commerce Marketplace Services

1: Engage with your Customers
With more and more people coming on an online platform, your presence on the internet “builds a healthy relationship with customers”, which imbibes trust among them towards your products and services.

2: Windfall Gain of New Customers

In the traditional business model, only selected people, who know you personally or who reside in the vicinity, purchase from your shop, while on the online market platform “the whole world is your market”.

Today, anybody can purchase your product from any corner of the world on figure tips.

3: Saving on Operational Cost

Here, the whole business is built on “web management system” with automatic inventory calculators, which “saves your cost on manpower”.

Now, you don’t need teller, accountant, and office building to accommodate your business.

4: Data-Driven Selling

In the traditional business model, you are unable to understand the needs of your customers.

However, in the online market place, you can understand the buying habits of your customers through data-driven traffic.

5: Digital Branding is Fast and Cost Effective

As compared to TV, Radio, Print adds, digital branding is fast and cost-effective.

You just need to “develop your digital marketing team” to beat big brands.

6: Digital Sales Pitching vs. Physical Sales Pitching

There is a greater chance of human error in the sales mechanism of the traditional business model; while in digital sales pitching you can give perfect information without any error.

The online platform provides an opportunity to “showcase products with unlimited details and visual presentation”.

7: Re-Marketing and Re-Targeting in a Boundary Less Market

It’s a barrier-free market where a person can visit anytime, anywhere even if he/she doesn’t intend to purchase a product.

The online market place is so efficient that even if a customer doesn’t purchase your product, you can “re-market” and “re-target” your products to that particular customer through various Google tools and increase your visibility.

But it is not possible at physical stores.

8: 24/7 Potential Real Income

A physical shop cannot remain open for 24 hours, while the digital platform is available 24 x 7, where customers can buy products any time from any place.

9: International Profitable Scalability

You can expand your business seamlessly at lightning speed across the globe through an E-commerce marketplace.

You can increase your profit as you can decide your margin and scale-up it without opening a physical store.

10: Affordable Employees and Affordable IT Infrastructure

The online market place doesn’t need an actual office as it can be operated from a virtual office.

You can engage people from any corner of the country through a virtual office, without investing heavily on salary, office and administrative cost.

11: Fast Order Processing Despite Huge Market Place

A physical store has limited capacity to accommodate customers at a single point of time, but in E-commerce, you can attend any number of customers simultaneously.

Moreover, people have the tendency to purchase from big market place instead of a small physical store with limited choices.

Challenges in E-Commerce Marketplace

1: Site Crash

Due to technical problems and external attacks, your website can break down anytime during a transaction, which may affect your business and customer base.

2: Customers can’t try before they buy

Before buying a product, a customer wants to try it physically which is impossible on an online platform.

This problem can be resolved by showcasing your product through graphical and visual presentation.

3: Customer can be Impatient if there is Limited Information

At a physical store, customer can ask as many questions as he wants to know about a product before buying, which has been a shortcoming of the online marketplace.

4: Shipping Delays can be Irritating

Many times online market place suffers a delay in shipping due to the logistic process or unavailability of products which leads to a decrease in customer satisfaction.

5: Constantly Upkeep Technology and Inventory

An E-commerce marketplace should have constant up-gradation of software to make the shopping experience more smooth and convenient.

6: High Competition, Low Margin, and Marketplace Fee

Many times you need to decrease your margin profit due to high competition. You also have to pay a fee to marketplace on the sale of products.

7: Limited Control in Other’s House

Here, you have little control over e-commerce marketplace services as your products are sold by someone else’s platform.

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Business Case Studies

How to Make your Business Successful

?Introduction

  • Do you clearly know the purpose of your business?
  • Have you planned to make your business successful in the long term?

In this article, we will analyze the Vision, Mission, Objective, Strategy and Action Plan (VMOSA) of some well-known organizations like Tesla Motors, Microsoft, Facebook, Burger King, Google, etc.

We will also discuss VALUES i.e. What, Where, When, How and Why of the company.

We will give you very simple frameworks which you can easily apply in your company.

Numerous small and large entrepreneurs have been benefitted by implementing these frameworks in their organizations. 

Some of the keys to a successful business are discussed as follows. 

Vision and Mission

To make your business successful, you should have a clear vision and mission statement of your company.

People generally don’t know the difference between vision and mission. Let’s understand this. 

Suppose you are at point A and want to reach point B, this projection is called Vision. It is generally five to ten years. 

’Vision is where you want to reach and mission is why you want to reach there.’

Profit should not be a mission, it is an outcome. When you will focus on purpose i.e. your mission, then profitability is just an outcome. 

Making money shouldn’t be the sole purpose of your company.

The problems of your customers which you will solve should be the purpose or mission of your company. 

Vision and mission act as a motivating factor for your employees, which is crucial for a company’s success.

’You cannot see the vision with physical eyes but from the mental eyes’.

Vision and Mission are the keys to a successful business.

Objectives, Strategy, and Action Plan

Objectives, strategy, and action plan are the keys to a successful business. 

What do you need to do to reach from point A to point B? This comes under objectives, strategy and action plan.

For this, you need to answer the following questions:

  • Where you want to go?
  • Why do you want to go?
  • What needs to be done to reach there?

Make your business successful by defining the objectives, strategy, and action plan of your company.

Values
 

How will you behave in this process is called values. It includes nature, belief system, and work culture of your company. 

It is also one of the keys to a successful business. 

To make your business successful, you need to define the values of your company.

For Example:

Jack Welch, the founder of GE Company, said, ’If any of our employees, irrespective of his/her performance, was not following the core values of our company, then he/she had to leave the company.’

Even Bill Gates does not hire the near-fit employees but perfect-fit employees who follow the value system of Microsoft.

This helps in forming a ’strong and deep-rooted organization’ with a clear sense of direction. Hence, clarity is power.

Vision and Mission Statement

Let’s have a look at some interesting Vision and Mission statements of a few companies.

Elon Musk’s Tesla Motors

VISION
– ’To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.’

MISSION
– ’To accelerate the world’s transition to sustainable transport.’ 

There are 3 important components to it.

  • First, ’accelerate’ i.e. they will work with high speed.
  • Second, ’World’s transition’ i.e. shifting from diesel/petrol vehicles to cleaner alternatives.
  • Third, ’Sustainable transport’ i.e. using renewable sources of energy.

Microsoft

VISION
– ’To help individuals and businesses realize their full potential.’

Individuals and business – clearly identify their key customers i.e. both individual and business

Amazon

VISION
– ’To be Earth’s most customer-centric company where customers can find and discover anything they might want to buy online.’

MISSION
– ’We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.’

Here, Amazon wants to sell a wide range of products at the best possible price by providing due comfort to the customers.

Intel

VISION
– ’If it is smart and connected, it is best with Intel.’ Here, anything and everything which is smart and connected works best with Intel.

P&G

VISION
– ’Be & Be recognized as the best consumer products and Service Company around the world.’ 

Google

MISSION
– ’Organizing the world’s information.’

Google may say that they are the best search tool for the web but by their mission statement, it is very clear that they need to work on the back-end to organize the information for you.

Nike

MISSION
– ’To bring inspiration and innovation for every athlete in the world.’

Here, Nike cleared that its sole mission is to inspire and bring innovation so that every athlete can optimize their potential.

Hindustan Unilever Limited

MISSION
– ’To add vitality to life.’

We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. 

It clearly states what they will offer and how it will help consumers gain vitality in their day to day life.

Burger King

MISSION
– ’Offer reasonably priced quality food, served quickly, in attractive and clean surroundings.’ 

In their mission statement, they focused on the core of customers’ needs i.e. price, quality, quick-service, and hygiene.

Facebook

MISSION
– ’To give people the power to share and make the world more open and connected.’ 

Here, Facebook wants to empower the people and provide them a platform to share and connect with the world. 

Let’s quickly summarize it-

  • VISION – Where do you want to go?
  • MISSION – Why do you want to go?
  • OBJECTIVES, STRATEGY & ACTION PLAN – How will you get there?
  • CORE VALUES – Your behavior and belief system which will help you achieve your vision.

You should also define the vision and mission statement of your company to make your business successful.

A businessman who solely works for money is doomed to decline. Money is only an outcome which will fuel the growth of your company. 

For Example:

?1. If a doctor opens a hospital to make money, then he will definitely resort to malpractices.

Just to make money, he will suggest various costly operations like cesarean, angioplasty, open-heart surgery, etc. even when they are not required.
Within 30-60 months, the whole town will come to know about the unethical practices of that hospital. This may result in their debacle.
2. On the other hand, if a doctor has made a mission to provide affordable healthcare service to people, then his brand will become popular soon.
Within 30-60 days, the whole town will come to know him as a highly efficient & professional doctor and he will become famous across the town. This doctor will not only make a good profit but sustain in the long term.

Hence, the mission should be to solve the burning problems of your customers, and profitability will come naturally.

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Business Case Studies

Lijjat Papad Company – A Story of Women Empowerment

Women Empowerment

Introduction

  • Do you want to know how the Lijjat Papad company led to the empowerment of women?
  • Do you want to know how the cooperative movement can lead to scalable business?

Lijjat Papad Company was started in South Mumbai by seven women on 15th March 1959.

They started preparing papad at an operational cost of Rs. 80 and made a profit of 50 paise.

They kept on increasing their manpower (which included only women).


Lijjat Papad Company did not have an owner; they made everyone an owner. This is called cooperative movement.

In cooperative movement, if there is a loss or a profit, it will be for everyone. So, let us study some of the vitals of the Lijjat Papad business.

Empowerment of Women

Lijjat Papad Company has encouraged the housewives to use their cooking skills and become the owner of an organization. These women started earning between Rs. 10,000-15,000, which lead to the empowerment of women from a disadvantaged background.

Lijjat has provided respect to women. Some of the women of Liijjat were able to make their children study in AIIMS and IIT. The women working in the Lijjat Papad Company are called Lijjat sisters.

Built a Strong Channel

Every day, Lijjat sisters are picked up by a Lijjat Papad Company bus from their homes to the Lijjat branch center, which has three windows:

(i) Deposit Window

At this window, the Lijjat sisters deposit the Papad made by them. After receiving the Papad, a quality check is done and the Lijjat sister receives a deposit slip.

(ii) Payment Window

Lijjat sisters show the deposit slip at the payment window and get their daily wages.

(iii) Collection Window

At this window, Lijjat sisters get the kneaded dough to make more Papad.

After collecting the dough, the Lijjat sisters get back into the buses that drop them at their homes.

Standardization

The Branch head of a Lijjat Papad Company center is called “Sanchalika”. She gets the full training from the company and an aluminum rolling board.

This rolling board is standardized. It keeps the shape, size, weight, and thickness of a Papad standardized.

Standardization in the Papad is the reason why 4.8 Billion Papads made by 45,000 Lijjat sisters all over India have similar tastes.

Network

The Cooperative Movement triggered by women entrepreneurs led Lijjat Papad Business to spread their legs to 82 branches in 17 states of India. Today, they export papad worth Rs 80 crores in 25 countries. They have a turnover of Rs. 1600 crores.

They have also come up with different products like masala, Mirchi, soap, detergent, and readymade chappati.

They are able to expand their business because of their stringent sourcing policies.

They maintain standardization in their raw materials like asafoetida (heeng), black pepper (kali mirch), and urad dal by bringing them from specific places.

They never use machines for making Papad. Whenever they need to expand, they increase the number of Lijjat sisters.

They distribute the profit among the Lijjat sisters. They have a profit-sharing model.

As a result, they are able to bring unity among the Lijjat sisters and are ready to work extra for the company.

Maintain Transparency
Lijjat Papad Company has strong foundational policies. It has 0% gossips and 100% transparency policy.

In this policy, whispering and politics are not allowed and if someone wants to say anything then they have to say it aloud.

As a result, a common purpose and vision are designed for the empowerment of women for poor communities to increase their economic participation.

Strong Vision

Octogenarian Jaswantiben Jamnadas Popat is the co-founder of Lijjat Papad Company. If she had wanted, she would have become the owner of the billion-dollar company.

But, she wanted to empower the women and give them respect so that they can make their children study.

From starting, the business model of Lijjat Papad Company is business-oriented instead of NGO oriented.

They have a sound foundation of accounts and finance. They have focused on sales, marketing, branding, and promotion from starting.

They have standardized the sourcing and the quality, size, and shape of the Papad.

They have never accepted donations instead they have given donations. They want to keep their cash flow statement positive.

So, they keep their accounts and finance so strong that they have never taken supplies on credit and they make the payment of suppliers instantly.

Also, they have never given goods on credit to their distributors. They take instant payment from the distributor. They make daily payments to Lijjat sisters.

Maintains Career Growth
The growth of the Lijjat sisters is also very transparent. They join as a roller and then gradually go through various departments to become the Branch head.

After promotion, the Branch head is posted to the corporate office of Lijjat Papad Company in Mumbai where she becomes a member of the committee. This committee has 21 members who govern the whole business.

Among these 21 members, some become the treasurers, some vice presidents, and some presidents.

This committee conducts weekly and monthly review meetings- branch wise, department wise, division wise, and product-wise.

Quality Control

Lijjat Papad Company also has a quality control team branch wise. One member from the quality team visits the home of Lijjat sisters to ensure that they are using all the quality parameters while making the Papad.


The coming period is not good for Lijjat Papad Business because today is the time of innovation, automation, process orientation, and Blue Ocean.

Any big businessman can purchase machines for rolling and making Papad with the help of only 450 women.

He can give growth, promotion, incentive, and training to the talented manpower and can make Papad at high speed and grow the business rapidly through a scalable model.

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Business Case Studies

How to Build a Successful Franchise Business

Introduction

  • Do you want to expand your business?
  • Do you know to know what makes a franchise successful?

Franchise is one of the easiest and fastest ways of expanding a business. If you want to know how to build a successful franchise business, you need to first clear about different franchise business models.

Once you are clear with the franchise business model, you can look forward to investing your money in an established brand or even can set up your own franchise chain.

Before getting into the details of how to build a successful franchise business, let us first understand why businessmen are more interested in expanding their business through franchise business.

Why go for Franchise Business?

One of the reasons that people go for a franchise business is its increasing success rate and decreasing failure rate.

    • In franchise businesses, the startup cost gets minimized because the working model is already made, and you don’t have to invest in various combinations to make your business come on track.
  • In this business, you get a master franchisor that helps you in developing the skills to run and expand the business.

There are many advantages as well as disadvantages in the franchise business.

Let us first discuss what makes a franchise successful.

Advantages of Franchise Business

1. In this business, you get a proven trademark, logo and an established brand name.

2. An established working business model.

3. You get the customer’s ready footfall.

4. Everything is already defined be it the content, context, training, or print.

5. A system to train your manpower.

6. In some brands, you also get the support of the national marketing team as well. This saves the investment of your extra money and time because the marketing is done by the team for you.

Disadvantages of Franchise Business

1. Higher Entry Cost and Ongoing Cost

If you want to know how to build a successful franchise business, then you should understand that taking up the franchise of an established and popular brand will cost you a lot. You have to invest a good amount of money.

On the other hand, if you start your own burger shop the cost reduces to almost 10% and the profit also increases.

There are several franchisors that will give you their own infrastructure, software, database, and computer but in return, they will:

  • Keep a tight eye on what you are doing; you will be under strict surveillance.
  • Check the standard of the place, the database and everything, regularly.
  • Not support you as you would have expected.

All they are interested in is royalty.

2. Lack of Flexibility

Do you want to jump into a business where the possibility of bringing in some other product becomes zero?

  • In this case, you will not be able to bring in any new ideas or variations.
  • You will just have to stick to the basic standards and follow them.

Big brands standardize their processes and products as this is what makes a franchise successful. However, this restricts the franchisee.

The bigger the brand the stricter will be their rules and norms because they already have a large customer base.

So, choose wisely before you join hands with someone for kick-starting a successful franchise business.

3. Thorough Research

Thorough research of the brand whose franchise you want to take is one of the important factors of how to build a successful franchise business.

If you are willing to take the franchise of a brand, then do check that what it’s market status is because your brand will also be known with the parent brand.

If your parent brand is not going well in the market, your reputation will also be hampered irrespective of the efforts and money you invest in it.
So, you should do the following:
  • Check the brand’s product, positioning, and pricing.
  • Go and meet the other franchisees of the brand and ask them about:

1. Gap between what they expected and what is deliverable.

2. Gap between commitment and achievement.

3. Support from the company.

The above points are the factors that make a franchise successful.

4. Check the Failure Rate

Now after meeting the existing franchisees, you must go and search for some of the franchisees who have been shut down.

  • Go and have a word with them to get an insight and the problem due to which they were forced to close down.
  • You have all the right to know that where was the problem, was it with the franchisor or the franchise.
  • Check on the internet and decide only after you have satisfactorily done your research.

5. Franchisor Controls all the Cards

After finalizing the brand you want to work with, the documentation is the next most important part of how to build a successful franchise business.

  • Before you sign the papers, get assured that they are benefitting you as well.
  • Let your lawyer read the terms and ask him for guidance.
  • Carefully go through the agreement before signing and if needed negotiate things with the franchisor.

6. Consider Doing it Yourself

It is true that joining with a big brand will give you big business and will demand big investment but on the other hand, sometimes things can go well for your brand as well.

Who knows the brand you built that is low on business and investment could boom up and become a bigger brand.

Business is not rocket science; it needs possibility, passion, a business mindset, and some analytical ability.
Hope these points will prove to be helpful on how to build a successful franchise business.
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Business Case Studies

How to understand consumer buying behavior?

Introduction

  • Do you understand consumer buying behavior?
  • Do you want to retain your customers?

Consumer behavior plays an important role in the positioning of your product. So, before launching a product it is certainly inevitable to understand consumer buying behavior.

Variety Seeking Buying Behavior vs. Habitual Buying Behavior

You need to ascertain whether your consumer is exhibiting a ’variety-seeking buying behavior’ or ’habitual buying behavior.
A consumer exhibiting ’variety-seeking buying behavior’ is always looking for buying something new or options. He can never be your permanent consumer.
On the other hand, a consumer exhibiting ’habitual buying behavior’ is not looking for any options. He has developed the habit of buying your products only.
So, whom to focus on? Naturally, the second type of consumers.
But, do you know how to convert a consumer from ’variety seeking from buying behavior’ to ’habitual buying behavior.

Let us take some case studies to understand consumer buying behavior.

#1: PepsiCo

Indra Nooyi, the global CEO of PepsiCo, has earned so much esteem that she was once the part of the advisory team of the American president.

But, when it comes to the products of her company, she goes to the malls and checks all the products with respect to ’Shelf offtake’ and understand consumer buying behavior.

Shelf Off-take means ’How the product is looking in the shelf and how much the customer is interested in buying it?’

She is not just making product innovations, but also bringing innovations in the product designs.

Why?

Because: Designs have a significant effect on the consumers’ buying behavior.

For Example

Indra Nooyi once found that the size of ’Sun Chips’, a product by Pepsico, was much bigger than the bite-size making it difficult for the consumers to eat it.

She not only changed the size of the Sun Chips but also brought changes in its packaging, form, functions, design, and layout of the product.

#2: Coca-Cola

One of the most selling products of Coca-Cola in America is Diet Coke but in India, the scenario is completely different.
In America, sugar is one of the biggest health issues and regular coke contains a good quantity of sugar.
So, Coca Cola came up with Diet Coke that does not contain sugar and is successful in America.
However, in India, a huge population is still malnourished, so, even if they consume more sugar in the form of regular coke nothing will happen to them.
So, after understanding the consumer needs and their behavior, TKK Krishnakumar, the Indian Head of Coca Cola, decided not to take the Diet Coke beyond tier 3 cities.

#3: Nike and Adidas

Both these companies deal in sports gear, wear, accessories, and shoes. They faced a lot of problems when they entered India.

Later, they understood the behavior of Indian consumers and promoted their products accordingly.

For Example

In the North-western states of India, cricket is a popular sport; people here are a huge fan of Sachin Tendulkar, whereas in the South-Eastern as well as North-Eastern states football is the popular game and everybody wants to become Maradona.

Based on this consumer behavior and preferences, Nike and Adidas have positioned and promoted their products in different parts of India.

#4: McDonald’s

When McDonald’s entered India, it failed. Later, they studied the consumer behavior of India and found that Indians use potato as a snack in one or the other form.

So, they introduced Mc Aloo Tikki, which got highly successful in India.

#5: Health Drinks

In India, all the health drinks related to lactating and pregnant mothers failed but children health drinks got highly successful.

Why?

Because: Indian mothers are more concerned about their children’s health than their health.

So, they buy a drink that helps their children to grow well.

#6: Johnson & Johnson

Johnson & Johnson studied the behavior of urban mothers in India. They found that the Indian urban mothers are alone at their homes.

There is nobody to advise and help them with what they should do to grow their children well.

After understanding this, Johnson & Johnson launched the ’Best for a Baby’ campaign.

As part of the campaign, they provided content about everything that could help a mother to keep their babies protected and safe.

They also gave many problem-solving videos on their YouTube channel.

With this, they created their recall value among the Indian urban mother before positioning their product.

Do not introduce any of your products before studying consumer behavior, otherwise, you may get fail.
With these consumer buying behavior examples, you can ascertain the market need and integrate the requisite changes in your product.
Categories
Business Case Studies

How to Start Quick Service Restaurant?

Introduction

The idea of starting a food restaurant, definitely, would have crossed your mind once in a lifetime. Isn’t it?

But are you confused,

  • Whether to start a QSR or FSR?
  • How to start a quick service restaurant in India?
  • Which, QSR would be more successful?

 

If you have decided to start QSR, then how to start it and make it successful would be your next objective!

No need to be confused further. Here we will discuss the ways how to start quick service restaurant and make it successful?

 

How QSR Differs from FSR?

Quick Service Restaurant (QSR) offers fast food at a reasonable price and minimum time. The concept of QSR is evolving fast because today, people neither have time nor patience.

In QSR, the fixed menu is prepared in bulk in the semi-cooked form so that whenever the customer requires they can provide the food in minimum time while maintaining its quality.

Full-Service Restaurant (FSR) offers complete cuisine, like Chinese, Thai, Indian, Continental, etc. It is good for fine dining and it is comparatively expensive. Here, people come to spend some time and eat lavish, and so, the ambiance is also designed accordingly.

Full-Service Restaurant usually does not prepare a lot of food in advance because of the variety they offer and hence, it takes time for them to prepare food.

Reasons for the Success of QSR

Starting a Quick Service Restaurant (QSR) has become a norm. Why this is so? Let’s see the reasons for its success of QSR:

  • Limited Menu.
  • Semi-cooked food items (Repetition of the same items).
  • Franchisor and Franchisee both are easily available in the market.
  • The actual cost per meal is less due to bulk production and bulk cooking.
  • Easy to replicate; so, sales volume increases.
  • Outlets are ready whether it is Mall, Railway station or Market Area.
  • Delivers tasty food within minutes.

 

How to Start Quick Service Restaurant?

Below given are 10 Tips to start a successful Quick Service Restaurant in India:

Tip #1: Innovation in Product and Process

Quick service restaurant industry needs continuous innovation in cooking and process of cooking.

Example:

Burger Singh delivers the Burger as other fast food restaurants do but with a different name and taste, viz., Chana Burger, Rajma Burger, Keema Pao, Patiala Shahi, Amritsari, Udta Punjab, etc.

Do not present a food recipe in a simple way;

try to represent them in a different way.

Tip #2: Use of Technology

Today, your business processes should be digitalized to make it successful. In a QSR, use of software and technology helps in – Taking Orders, Billing, Inventory holding, Backend support of Supply Chain Management, and Managing things in a better way.

Tip #3: Standardized operations for Progression

In QSR, you must have-

  • Centralized Procurement
  • Receiving Supply- 1. Good quality 2. Timely Delivery
  • Stocking and Inventory Management- 1. Fast Product 2. Slow Product 3. Non-Moving Product

Tip #4: Quality Control and Continuous Audit

You must have quality control at each and every department of your QSR business whether it is- Cooking, Delivery, Packaging, Services or Billing.

Do a proper audit of every outlet as well as Mother Kitchen.

Also, take care of following things -Hiring, Training, Handling Complaints, Making Reports, Quality Service, Safety, Cleaning, and Maintenance.

Tip #5: Retention of Quality Manpower at Affordable Rates

To be successful in quick service restaurant in India, you should retain quality manpower at affordable rates.

You need not hire an executive-level chef or a celebrity chef because food recipes and ingredients are already fixed. So, try to retain good staff at an affordable cost.