Blogs

Big and small banks, is size, the key? Elucidated through key benchmarks

The banking industry has undergone a tremendous amount of change in the past 8 years as a result of the 2008 financial crisis. During this period, many small and large banks performed badly, several were bailed out and various others changed their business strategies and operating models. These steps were taken in order to accommodate cost saving measures and enforce stricter regulations....

Restaurant Business–The Story of Long-Term Survival

The Restaurant Industry plays a pivotal role in shaping today’s world economy. The food brings distinct cultures and communities together in a truly globalised environment. With over $780 bn of sales (2015), the industry provides employment to millions of people and is one of the largest private sector employer. Although the industry is marked by low barriers of entry, the restaurant...

Motor Vehicle Parts Manufacturing: key operational criteria that define survival

The motor vehicle parts manufacturers sustain operations based on a healthy demand, driven by sales of new automobiles and demand from the replacement market.  An efficient operator in this industry will need to be extremely focussed on its cost structure to sustain the multiple volatilities that are driven by automotive demands and changes in prices of key costs. The industry consumes a...

Retail industry: analysing performance in the face of on-line retail

The global e-commerce sales were USD 994.5 billion in 2015 and are forecast to be around USD 1,506 billion in 2018 (Source: Televisory's Research). The consumer trends and preferences are changing, but these are not going to lead to the death of brick and mortar stores in the near future.     Televisory carried out a research on global companies, in a number of industry...

Surviving Coal Mines - what operational parameters have changed for surviving coal mining industry with depressing financial results

A lot is happening in the coal mining industry of late, most of which is quite painful for the stakeholders involved. There have been mine closures, suspension of coal fired power plants, bankruptcies and layoffs, to name a few. The coal industry today is stricken with number of interlinked problems, all at once: price decline, overcapacity, continuous demand contraction, haunting...

Benchmarking Construction Industry in Developed and Developing World

The construction industry plays a vital role in the economic development of a country. It contributes approximately 10% to the GDP for the developed economies and more than 4% for the developing ones (data from UNCTAD Stats). While major challenges such as capitalization, availability of labour (skilled and unskilled), technological constraints, proper planning of project timelines, etc....

Power generation: changing landscape with fluctuations in fuel costs and challenges involved.

Dominance of Coal Historically, the power generation industry has been dominated by coal as a source of fuel. The fossil fuel fulfilled 1,520 Mtoe of the 3,292 Mtoe of additional global primary energy need from 2000 to 2012, or a little more than 46%. The Economic Impact Analysis (EIA) projects, that global electricity generation is likely to increase by 69% from 21.6 trillion kWh in 2012...

Toll road, success defined even before the operations begin?

Toll road (or a tollway or turnpike) is a public or private roadway that makes travel easier and more convenient for commuters. A fee (or toll) is charged from the road user to provide this facility. A low government budget, increased demand for roadways to resolve traffic congestion, both on major highways and large metropolitan cities has facilitated the need for tollways. Nowadays, a large...

Key operational success formula in Retail Industry

The average foot-traffic and the customer conversion ratio are primary operational parameters that drive the revenue of a retail outlet. A retail store in a prime location will yield higher revenue per square foot. However, a rented retail outlet in a prime locality may have a higher rent, this may even exceed the revenue at times. A high rental expense can erode the EBITDA margin of a retail...

Outsourcing in garment manufacturing.

  A road to profit shareholders. Outsourcing can be stated as a real life implementation of the "Comparative Advantage Theory", since outsourcing, earlier has never been considered as significant, as it is in today's globalised business world. The process of sourcing goods at cheaper rates from developing countries, primarily attribute to a low cost of labour. This...

Global steel industry-witnessing integration and specialization.

It is no more a surprise that the steel industry is going through a rough patch, driven primarily by skewed demand-supply ratio. Steel experts predict a continuous slow growth and lack of demand in the near future, owing to slow economic progress in major nations. Thereby, adding further pressure for the survival of most of the existing players.     To add to...

Budget Vs Premium Airlines.

Operational benchmarks that unmask the financial performances. The strong financial performance of an air carrier requires not only a solid brand proposition, but sound operational strategies, that evolve in a continuous dynamic environment. Although the list could be exhaustive, operating characteristics include high operating margin routes, strong network on routes...

Digitization of Content a Bane for the Paper Industry.

Lead Evolution of technology and growth in the penetration of the world wide web has swung and shifted the consumer preference from accessing content in a tangible form (Books, Magazines, Journals, etc.) to retrieving it on the internet, in a digitized format. Over the past decade, this trend has adversely impacted the paper industry, specifically the companies which produce grades of...

Understanding a Classical Market Place Phenomenon Through Operational Benchmarking.

Apple Vs Blackberry In the initial phase, Blackberry was a standard executive gadget for sending and receiving emails, with its very convenient keypad and later it turned out to be a communication cum email gizmo. It was almost unimaginable to contemplate a device that could beat Blackberry in a niche market in the early 2000s. The launch of the tangible iPhone (surge of...

Why a combined Operational and Financial Benchmarking is Needed?

It is normal to come across a comprehensive financial analysis. What is missed is the fact that financial analysis is the end result of the operational performance of a company. Operational performance also highlights key factors that distinguish companies that operate in the developed world (low-interest rates, high wages) and the developing world (normally high-interest rates, low wages) and...

Slack set out to kill E-mail

Started as a side project for internal use in a gaming company High revenue growth with recurring revenues Went Public by offering shares through the Direct Public Offering ...

Will the Big Bang merger drive, of Indian Public Sector banks, provide the required impetus to the slowing economy?

India’s Government announces plans to merge 10 of the country’s public sector banks Probable impact of the mergers   India’s Finance Minister, Nirmala Sitharaman,...

Is Mothercare on the verge of collapse?

History of Mothercare What went wrong? Company moved into administration   Mothercare, an iconic brand for babies, children and parents to be, went into...

Rapidly growing Indian online food delivery industry and its unrealised profits

Evolution of online food delivery industry in India Geographical penetration and scope for expansion Key players and their zeal to balance revenue and costs   Online...

Tire manufacturing industry, analysing the cost and margin trends

The global market for tire manufacturing stands at $180 billion. Michelin anticipates the long-term demand to rise at the rate of 5 to 10% a year in developing markets and 1 to 2% a year in mature...