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  • Category: Miscellaneous

    Too many cooks spoiling the broth: Consumer product Industry

    If you look at any major service industry, telecom services, cable networks ,IT sector,fastfood, restaurants, healthcare and many others, the one common thing that stands out is there are too many companies viving for the consumer market share. Did we make a mistake allowing this unregulated growth? because
    Today three major telecom companies are reeling under crores of debt, thousands of jobs are at risk. IT sector also has similar issues.Healthcare has numerous private players who feel the pinch with the government pricing capping laws, there are far too many cabs on the roads making us wonder are they really breaking even.There are at least 15 restaurants/MNCs chains, around each residential locality who do free home delivery for a meagre order of Rs 150-250.
    I'm sure there will huge loses suffered by these companies on their books and finally one by one the government and taxpayer ends up paying for it.
  • #614270

    What I feel that without accessing the market properly the companies start new product or service and later fail in their endeavor. The three telecom companies when launched as new was started with much fanfare and alter when stiff competition was on scene, the companies could not prosper and more over the after sales service was worst and hence the customers started leaving to greener pastures. All lead to over head charges increasing and now the telecom companies are on the verge of amalgamation, closer or take over. But in India all these things happen at the drop of the hat.

    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #614294
    This has become a habit in India. Instead of searching for new ways we always try to copy somebody who is doing well without assessing the demand and supply position in the market.
    In our colony, a known friend started a curry point. That is the first of its kind in that area. Many people started purchasing the curries from him. Especially in the nights, there was a very good demand. By seeing this another 3 people started the same business in the same area. The public started getting distributed and started paying attention for quality. So it has become a compulsion to all the vendors to maintain quality and offer at a low price. My friend lost the charm and stopped that business. This is happening in all sectors in all places. So the present position in many sectors is very bad. Telecom industry is the worst affected sector.

    always confident

  • #615209
    too many companies compete for the consumer base and then force some of the competitors out of existence, a regulated growth based on the market needs would be more stable.

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