Institute of professional education and

research
PGDM-2009-11

Assignment On

“Business Models of various companies”

Submitted to:- Submitted By:-

Prof. Mahesh soni Praveen Mayar(21)
 Airtel’s Business Model
USP’s-Innovation,widest network coverage

Airtel

Telecom
DTH service
services

Broadband Cellular Tele -

services services services

Retailer
Retailer

Customer
SWOT Analysis Bharti Airtel

Strengths
 Bharti Airtel has more than 65 million customers (July 2008).
 It is the largest cellular provider in India, and also supplies broadband and telephone
services - as well as many other telecommunications services to both domestic and
corporate customers.
 Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with
whom they hold a strategic alliance. This means that the business has access to
knowledge and technology from other parts of the telecommunications world .
 The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.

Weaknesses
 An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and experience of
how a cellular telephone system actually worked. So the start-up business had to
outsource to industry experts in the field.
 Until recently Airtel did not own its own towers, which was a particular strength of
some of its competitors such as Hutchison Essar .
 The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal
the lack of any real emerging market investment opportunity for the business once
the Indian market has become mature.

Opportunities
 The company possesses a customized version of the Google search engine which will
enhance broadband services to customers.
 The tie-up with Google can only enhance the Airtel brand, and also provides
advertising opportunities in Indian for Google
 Global telecommunications and new technology brands see Airtel as a key strategic
player in the Indian market.
 The new iPhone will be launched in India via an Airtel distributorship.
 Another strategic partnership is held with BlackBerry Wireless Solutions.
Despite being forced to outsource much of its technical operations in the early .

Threats
  Airtel and Vodafone seem to be having an on/off relationship.
 Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and
instead invested in its rival Hutchison Essar. Knowledge and technology previously
available to Airtel now moves into the hands of one of its competitors
 The quickly changing pace of the global telecommunications industry could tempt
Airtel to go along the acquisition trail which may make it vulnerable if the world goes
into recession.
 Perhaps this was an impact upon the decision not to proceed with talks about the
potential purchase of South Africa's MTN in May 2008. This opened the door for
talks between Reliance Communication's Anil Ambani and MTN, allowing a
competing Inidan industrialist to invest in the new emerging African
telecommunications market.

Porter five force model

Substitutes
 Landline

 CDMA

 Video Conferencing

 VOIP - Skype, Gtalk, Yahoo Messenger

 e-Mail & Social Networking Websites

 DELL
Dell’s Business Model
USP’s:- Customization

Procurement

DELL

Retailer Internet

Revenue Customer Revenue

SWOT Analysis of Dell Computer

Strengths

 Dell's Direct Model approach of enables the company to offer direct relationships with
customers such as corporate and institutional customers
 Dell Computer's award-winning customer service, industry-leading growth and consistently
strong financial performance differentiate the company from competitors(Price for
performance,customization,Reliability,service and support).
  The company's application of the Internet to other parts of the business --including
procurement, customer support and relationship management -- is growing at a rate of 30
percent. The company's Web site received at least 25 million visits at more than 50 country-
specific sites.

Weakness

 Dell’s biggest weakness is attracting the college student segment of the market. Dell’s sales
revenue from educational institutions such as colleges only accounts for a measly 5% of the
total. Dell’s focus on the corporate and government institutional customers somehow
affected its ability to form relationships with educational institutions. Since many students
purchase their PCs through their schools, Dell is obviously not popular among the college
market yet.
 For home users, Dell’s direct method and customization approach posed problems. For one,
customers cannot go to retailers because Dell does not use distribution channels. Customers
just can’t buy Dell as simply as other brands because each product is custom-built according
to their specifications and this might take days to finish.

Opportunities

 Personal computers are becoming a necessity now more than ever. Customers are getting
more and more educated about computers. Second-time buyers would most likely avail of
Dell’s custom-built computers because as their knowledge grows, so do their need to
experiment or use some additional computer features.
 Demand for laptops is also growing. As a matter of fact, demand for laptop has overtaken
the demand for desktops. This is another opportunity for Dell to grow in other segments.
 The internet also provides Dell with greater opportunities since all they have to do now is to
visit Dell’s website to place their order or to get information. Since Dell does not have retail
stores, the online stores would surely make up for its absence. It is also more convenient for
customers to shop online than to actually drive and do purchase at a physical store.

Threats

 In a volatile market such as personal computers, threats abound. Computers change in a

constant sometime daily basis. New software, new hardware and computer accessories are
introduced at a lightning speed. It is essential for Dell therefore to be always on the lookout
for new things or introduce new computer systems.
 The threat to become outmoded is a pulsating reality in a computer business. Not only that,
companies must produce products that are high in quality but low in price. This is one
challenge that Dell contends with.
 One of the biggest external threats to Dell is that price difference among brands is getting
smaller. Dell’s Direct Model attracts customers because it saves cost. Since other companies
are able to offer computers at low costs, this could threaten Dell’s price-conscious growing
customer base. With almost identical prices, price difference is no longer an issue for a
 customer. They might choose other brands instead of waiting for Dell’s customized
computers.
 The growth rate of the computer industry is also slowing down. Today, Dell has the biggest
share of the market. If the demand slows down, the competition will become stiffer in the
process. Dell has to work doubly hard to differentiate itself from its substitutes to be able to
continue holding a significant market share.
 Technology dictates that the most up-to-date and fastest products are always the most
popular. Dell has to always keep up with technological advancements to be able to compete.

Porter’s Five Force Model

The competitive force of substitute products

The competitive force of substitute products matters when customers are attracted to the products of
firms in other industries. Substitute products are a strong force when the sales of substitutes are
growing rapidly and/or the producers of substitutes are planning to add new capacity. Typically, we
will find that the profits of the producers of substitutes are up, adding incentive for them to compete
more aggressively.

Competitive pressures from substitute products are strong when:

• prices of substitutes are attractive and they are readily available
• buyers' switching costs are low
• buyers believe substitutes have equal or better features.

Competitive force of suppliers

Suppliers are a strong competitive force when the item makes up a large portion of product costs, is
crucial to production process, and/or significantly affects product quality. Generally in such cases it is
costly for buyers to switch suppliers, which have good reputations and growing demand. Suppliers
also have a competitive edge when they can supply a component cheaper than industry members can
make it themselves. They are in the strongest position when they do not have to contend with
substitutes themselves. When these factors exist, buying firms are not important customers. As a
general principle of competitive markets suppliers are a stronger force the more they can exercise
power over: prices charged; quality/performance of items supplied; and, the amounts and delivery
times.

In summary, the key factors determining the competitive force of powerful suppliers are:
• few suppliers
• unique product
• high switching costs
• threat of forward integration
• supplier has cost or quality advantage
• unimportant industry for supplier.
Dabur FMCG COMPANY

Usp’s- Herbal products,R&D

Upstream partners Dabur

Downstream
Partners

Retailers

Consumers

SWOT of Dabur
Strength
 Having alliance with other strong and popular business is a major plus point for dabour India
as it help bring in new customer and make business more effective.
 Being a market leader as dabour India is, is key to their success as it boost reputation profit
and market revenue
 Competitive pricing is a vital elements of dabour indias overall success, as this keeps them
link with their rivals
 Dabour India has a extensive customer base, which major strength regarding salces and
profit.
 Dabour India’s reputation is strong and popular, meaning people view it with respect and
believe in it.
 Weakness
 A series weakness for dabour India is the fact their product/services are of low quality.
Meaning people have better quality substitute.
 Over pricing setting to high price for dabour India’s product/services make them
uncompetitive.
 Problem with stock is major weakness as they need to keep up with demand.
 Onion presence is a vital for success these days and lack of one is limitation for dabour India.
 Dabour India is a limited product lion is major weakness .

Opportunities
 Dabour India could benefit from government support, in the form of grant, allowances
training etc.
 Looking at export opportunities is way for dabour India to raise profits.
 As the economic climates improve so do the opportunities for dabour India.
 Reaching out into other markets is a possibility for dabour India and big opportunities
 Structural change in the industry opens the other doors and opportunities for dabour India .

Threats
 Consumer life style change could lead to less of a demand for dabour India’s
product/services.
 Change in demographic could threaten dabour India.
 Extra competition and new competitor entering in the market could unsteady for dabour.
 Raising cost could major downfall for dabour as it would eat into profit. Substitutes product
are available in the market present a major threats for dabour.

Substitutes of Dabur

 Kerala hub of ayurveda. Foreign products, HUL products,

Mcdonalds
Business model

Usp’s:- Value for money,customer delight

Upstream partners Mcdonalds

Raw materials

Franchise

consumer

SWOT analysis
STRENGTH

 Large market share

 Strong supply chain

 Strong brand name, image, and position

 Strong financial position and performance

 Affordable price and high quality product

 Nutritional information available on packing

  Specialized training for manager known as the hamburger university

 Strong global presence & performance in the global market

WEAKNESS
 Seasonal

 Legal action related to health issue, use of Trans fat & brief oil

 Customer losses due to fierce competition

 Location of outlets are sometimes are not to closer to storage center so due to which it
affect on quality

 Break –even sales can generated after operating for a certain number of year only

 Low cost menu that will attract the customer

 Joint ventures with retailer (supermarkets)

 Focus on middle class income group customer with low price quality goods will enhance
the profit margin

 Growing health trend among consumer

THREAT

 Focus by consumer on nutrition and healthier lifestyle

 Anti-American segment

 Relation between corporate level McDonalds and the franchise dealer

 Environmental pressure

 Competitors threatened the market share of the company both internationally and
domestically.

PORTERS FIVE -FORCE MODELS

COMPETITION

Restaurant industry is highly competitive industry. There are many fast foot business in the
industry who may fight with each other to improve there customer base McDonalds is not the
exception. McDonalds came out with the breakfast to compete with the existing business serving
the breakfast. Hence this industry is extremely competitive and MDC should be up to dated with
the customer taste and preference.

EASE TO ENTER

Although it is hard to enter into the restaurant business and to established it brand name. There
is high cost of entry in the market and there is high research and development cost, large strong
company with strong brand identity such as McDonald do to make it more difficult to enter and
succeed within the marketplace new entrant find that they are faced with price competition
from existing chain restaurant

SUBSTITUTES

There are many substitutes in the industry. Since there are wide varieties of product that people
can choose, they could either be substituted by MDC burger, beverages dairy products and
other.

SUPPLER

Power of supplier within the fast food industry would be relatively small. Unless the main
integrants of the product is not readily available

BUYER

Relatively strength of buyer is low in the industry

HUL
.

BUSINESS MODEL

USP’s-Distribution channel
HUL

CARRYING & FORWARDING AGENT

DISTRIBUTION STOKIST

WHOLESALLER

RETAILER URBAN RETAILER

CONSUMERS

SWOT ANALYSIS
STRENGTH

 Wide distribution channel with over 3400 distribution and 16 main outlets
  growth rate is high

 Innovative Aspects

 Presence of Established distribution network in both.

 Strong R& D

 Highly skilled HR

 Effective CSR

WEAKNESSES
 Strong Competitors

 Low Export Level (At Present)

 Changing consumption pattern

 High advertising costs

OPPORTUNITIES
 Large domestic Market

 Untapped rural Market

 Changing life styles & rising income levels

THREATS

 Tax & Regulatory structure

 Mimic of brands

 New Entrants

 Increasing cost of raw material.