BUSINESS STRATGIES OF FEW WELL KNOWN COMPANIES

Business/enterprises/start-ups/entrepreneurship are the terminologies which are at the tip of the tongue in nowadays conversations. Actually among these, Business is very old term, as there are many well known businesses still leading the market from past many years. Every time we hear the word business or businessmen, the first thought that hits our mind is, they will be great planners, strategists etc. Yess!!! Exactly, when we dig deep we will come to know the way they handle business to survive in this competitive market. One such attempt has been done in this blog to share few of strategies used by few of the popular brands. And I am sure some of you may feel surprised to know these hidden information because even I was surprised, when I got to know about them and that’s how I started scratching more about it and ended up writing these few lines.

Before letting you know about those interesting facts, let us understand meaning of these terminologies – Parent company, Subsidiary company. So what is meant by these terminologies ?? To make it clear here’s the Google answer for it: A subsidiary is a company with voting stock that is more than 50% controlled by another company, usually referred to as the parent company or the holding company. A subsidiary is partly or completely owned by the parent company, which holds a controlling interest in the subsidiary company. In simple terms, you are the owner of a house and also you invest more than 50% cost in building a house for your friend, in this scenario until your friend pays back your investment, you will be the parent for both houses and he is subsidiary. Hope you understood. Because the main success mantra of many successful companies or groups, is they have their stakes in many of other companies which make them parent company for many subsidiary companies, these will act as multiple source of income and also parent company plays very well using these to maintain the command in the market.

Let’s understand about these business conglomerates from different sectors:

1. FASHION
   Many of we millennials unknowingly getting obsessed with the fashion/dressing and specially with the brands. It has become a growing trend nowadays in India to get attracted to the clothing brands. Obviously branded will be expensive as compared with local, but the quality and design makes us buy them. I suggest you to take a look on all popular clothing brands of India and 90% have attractive Western names. And this makes many people to buy them. Like they say, To impress an Indian, if you are foreigner than speak in Hindi or if you are also an Indian than speak in English. This mindset has been captured very well by this parent company which has many popular brands under its roof. That is the Aditya Birla Group, which owns many brands like People, Peter England, Louis Philippe etc. The Birla group has owned few of these brands and few of them which are very own of birla group have been given a western name to attract the Indian market. Reference link:  https://en.wikipedia.org/wiki/Aditya_Birla_Group

2. EYEWEAR
 Have you ever thought why the branded sunglasses are so expensive???
Offcourse the feel/experience/coolness which branded sunglasses give cannot be experienced by wearing a non-branded. But do you think, because of difference in quality the cost is tagged so much for branded sunglasses? Even there are many who are obsessed with sunglass brands and sometimes they even get into verbal fight to prove their brand is better. To all such people here is a fact which may surprise them. There is an Italian company called Luxottica, which is the very old company, which makes eye glasses/ lens etc. So, this same company produces sunglasses and sells them with different brand names all over the world. Many brands which you may like are of this company such as Rayban, Vogue, Oakley, they also make lenses for Dolce & Gabbanna and many more companies. When the Luxottica manager was interviewed, he said we make all types of sunglasses and sell them with different brand names because people always look for varieties, and thus we have created competition in market with our own products but with different names, of which public is unaware. And when asked about expensive cost of sunglasses, he says our manufacturing cost is much much lesser but we have kept MRP of those high, because people are ready to take them for displayed amount. Check out full video here: http://desinema.com/have-you-ever-wondered-why-ray-bans-are-so-expensive-heres-why/

Reference lik: https://en.wikipedia.org/wiki/Luxottica

3. SMARTPHONES

In last one year, in India may be many of you have observed that entire market in almost all cities were decorated with OPPO – VIVO banners, hoardings, flyers etc(2017-18). I don’t know how many of you were surprised to look at that, but after looking at those, one question arises I.e how come these two companies both are from China, creating a high competition at a time in the market with their huge spending on marketing? And even this unstoppable branding of these smartphones made many people to go and buy atleast to experience once, such competition has been built up in market among these two. But the hard truth behind this is again a very strategic plan of a chinese giant to capture Indian market. One chinese company named BBK Electronics is the owner of these two OPPO & VIVO along with one more popular brand i.e One Plus. This company BBK electronics strategy is such that both smartphones will be made by them, but they will be marketed and sold with different names, and they created a competition between these two brands and attracted people.
Reference link: https://en.wikipedia.org/wiki/BBK_Electronics

4. AUTOMOBILES

We have one such company in automotive sector also which owns more than 8 branded cars/truck companies. Its the Volkswagen group which own many companies such as Porsche, Lamborghini, Scania, AUDI etc
Reference link: https://en.wikipedia.org/wiki/Volkswagen_Group

To sum up,

1) Some companies will have subsidiary companies to compete in the market.

2) Some release their own products with multiple brand names to create competition in market.

Please comment to share the other strategies, which you are aware of…

So, this was a small effort in gathering these interesting facts.

Let’s give top priority to Quality in everything. As saying goes ”Chase the Quality, as Quantity chases you”.