THE GREAT INDIAN BUSINESS RIVALRIES

BUSINESS

It’s a dog eats dog world out there. The competition is stiff and the money involved is big! In the bid to out do their rival and capture the market, companies sometimes get involved in petty drama. Take a look at how big Indian companies or corporate firms took on each other because of fierce market competition.

Times Now versus CNN-News18

Couple of years back, CNN-News18 called themselves the numero uno of Indian news but India’s self proclaimed number 1 channel Times Now took major offense to it. They released data (36 weeks of it, mind you) from BARC and even went on take their rivals head on by asking questions like, “What’s the desperation CNN?” and “Release the real numbers”. But sadly, the nation did not want to know the answer!

Pepsi versus Coca-Cola

When asked about, who they thought their real competition was, Coca-Cola India had this to say….

“Our real competition is water, tea, nimbupani and Pepsi… in that order.”

For these two American companies, battle fields have been many and India was one among them. This corporate war reached its crescendo in the late 90s when the two indulged in a bitter ad war. This went on for years before both sides realised how silly the entire fight was.

The Hindu versus Times of India

Known for its no-nonsense approach to news, The Hindu, is popular among the older readers. But the Chennai edition of TOI used this as a ploy to attack the Hindu, and they asked The Hindu readers “Stuck with news that puts you to sleep?”. Staying true to their classy self, The Hindu simply released a full front page ad saying, “Stay ahead of the Times”

Colgate versus Pepsodent

After Pepsodent claimed that they were 130% superior than Colgate, the latter dragged the former to the court. “India’s most recommended brand by a dentist” was upset with Pepsodent and asked the court to intervene. Colgate’s claims were set aside by the Delhi High Court. But Pepsodent was panned for using Colgate’s name in the ad. Who knew those pearly whites would cause so much drama.

AMAZON- THE GROWTH STORY

BUSINESS, World Affairs
Year Milestone
1994 Jeff Bezos quits his job, launches Amazon.  Initial startup capital- his parent’s personal savings
1995 Amazon.com goes online with book sales. Bezos raises an $8 Million round of funding from Kleiner Perkins
1997 Amazon goes public at $18 per share
1999 Bezos named Time Magazine’s “Person of the Year” for popularising online shopping.
2009 Bezos acquires Zappos through  stock swap
2013 Bezos acquires the Washington Post
2015 Amazon surpasses Walmart as the most valuable retailer in the United States
2016 Becomes the fourth most valuable public company, goes offline with its first bookstore in Seattle
2017 Amazon acquires Dubai-based Souq.com, Bezos becomes the second richest person in the world

Amazon founder Jeff Bezos became the second richest person in the world, moving ahead of when Amazon acquired on 29 March acquired Middle East’s largest online retailer, Souq.com. According to Bloomberg, Bezos added around $1.5 billion to his fortune (now at $75.6 billion) as his company’s share rose to $18.35 billion as of  29 March.

RATAN TATA TAKES ON CYRUS MISTRY

BUSINESS, National News

Just days ahead of the Extraordinary General Meeting of six Tata firms, the interim Chairman of Tata Sons pressed for the ouster of Cyrus Mistry as the director  of Tata Sons.

In a letter addressed to the shareholders, Tata sought their support to move a special resolution.

 

The right step would have been for him to resign as director. Unfortunately, he has not yet done so and his continued presence as a director is a serious disruptive influence on these company boards, which can make the company dysfunctional, particularly given his open hostility towards the primary promoter, Tata Sons. As a final step he was offered an opportunity to step down voluntarily from the Chairman position, which he rejected and said that it should be taken up at the Board,

RBI SURPRISES MANY, REFUSES TO SLASH MONETARY RATES

National News

Following the November 8th announcement to demonetize 500 and 1000 rupee notes, many had expected RBI to slash the monetary policy but the announcement shocked many.

  • Repo rate and Reverse Repo rate remained unchanged at 6.25 percent & 5.75 percent respectively.  
  • Cash reserve ratio or CRR unchanged at 4 percent
  • Growth forecast was cut to 7.1 percent, from 7.6 percent for this fiscal
  • Inflation target remained at 5 percent for March 2017
  • All MPC members voted in favour of status quo in policy
  • Demonetisation to result in short-run disruptions in cash-intensive sectors
  • Crude price volatility, surge in financial market turbulence could put March end inflation target at risk
  • Foreign exchange reserve rose to all-time high of USD 364 billion on 2 December.
  • RBI injected Rs 1.1 lakh crore liquidity through OMO purchases this fiscal
  • Next monetary policy to be announces on 8 February.

 

Bear has a free run at Sensex

BUSINESS

The S&P BSE Sensex slipped below its crucial psychological support level of 26,000 in the first hour of trade on Monday. This happened for the first time since June 24 on an intraday basis and May 25 on closing basis.

The Nifty50 also pared gains after a positive start and slipped below its crucial support at 8,000 level, weighed down by losses in realty, consumer durables, capital goods, autos and IT stocks.