Blogs

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 existed...

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 industry...

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 serviced,...

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...