Category: Case Study

Scam 1992: Harshad Mehta Scam Story
The 1992 Indian Stock Market Scam, being masterminded by Harshad Mehta, stands as one of the biggest financial frauds in India. Its repercussions became highly felt when it came to the Indian economy, regulations to be followed in the stock market, and investor confidence. It showed the weakness in the Indian banking and financial system that forever altered the horizon of Indian finance. This blog goes deep into the intricacies of the Harshad Mehta Scam story, thus including the background of Harshad Mehta, the techniques he used to create the ruckus in the stock market, and the after-effects that followed.

Overview of the Scam 1992

The Harshad Mehta scam refers to the 1992 Indian stock market scam, which featured a sequence of fraudulent trading on the Bombay Stock Exchange (BSE). The scam reportedly resulted in a loss of around ₹4,000 crores (approximately $1 billion) to banks and investors. Due to his charm and connections, Mehta has often been labeled as the “Big Bull,” who allowed his ingenious scheme to inflate and manipulate stock prices with methods such as bank receipts (BRs), creating the illusion of liquidity. He manipulated loopholes in the banking system and regulations to artificially inflate stock prices and thereby amassed a fortune.

Manipulation reached its peak in 1992 when Mehta’s activities were brought out in public, and a stock market crash shook the Indian economy. The scandal resulted in regulatory reforms in the Indian financial sector, bringing immense changes in the way that the stock market was monitored and regulated.

Background of Harshad Mehta

Born on July 29, 1954, in a middle-class family in Mumbai, Harshad Mehta had a humble beginning. He graduated with a degree in commerce and did a number of odd jobs before he became a salesperson in a brokerage firm. His sharp financial acumen and understanding of the stock market soon led him to establish his own brokerage firm, Grow More Research and Asset Management. With a sharp eye for investment opportunities and an impassioned ambition, he rapidly climbed the ranks of the financial world.

Mehta emerged as a major player in the Indian stock market in the late 1980s and early 1990s. His investments and financial strategies made him famous in the country. He came to be known as the “Big Bull” of the stock market for making bold predictions and wonderful returns. However, this success stood on a shaky platform of unethical practices and deception.

Harshad Mehta Scam Amount in Rupees

The Harshad Mehta scam of 1992 is one of the biggest financial frauds in India’s history. The total amount involved in the scam was around ₹4,000 crores (approximately $1 billion at that time). This massive fraud shook the Indian economy, exposed loopholes in the financial system, and led to major changes in how the stock market and banks operate.

Read Also: Financial Scams in India: Types, Resolution, and Awareness

Scam 1992 Details

The Harshad Mehta scam was a result of several strategic moves which Mehta undertook to alter the stock prices. Below is a comprehensive case study of how the scam was carried out:

1. Ready Forward Deal

During that time, banks were required to invest a certain amount of their deposits in government securities. Banks in need of funds or liquidity used to transfer these securities among themselves through the “Ready Forward Deal” mechanism. The Ready Forward Deal was a mechanism used by banks to buy and sell securities in exchange for funds with the help of brokers. Harshad Mehta, being a famous broker, used to get cheques issued in his name instead of the bank. When the bank demanded funds in exchange for its securities, he would approach another bank and repeat the same process.

2. Bank Receipts (BRs)

Bank receipts are documents issued by the bank to acknowledge the receiving of funds in exchange for selling the securities. Harshad Mehta manipulated and convinced the banks to issue fake BRs, which were used to raise huge sums of money from banks without any actual underlying securities. Harshad Mehta used these fake Bank Receipts (BRs) to raise high loan amounts from banks without actually owning any securities. He then bought a large number of shares in the market and artificially inflated their prices. The scam led to huge losses for the banks when it finally came to light.

3. Circular Trading

Circular trading refers to a situation where shares are sold and bought between different groups of traders for the sake of creating an artificial case in which the demand for the stock is high. Harshad Mehta used such trading practices to raise the prices of stocks, thus attracting unsuspecting investors.

4. False Information

Mehta also spread false information about various companies to whip up mania and artificially pushed their stock prices much higher than their actual value. The reason behind spreading false information was to generate excitement about certain stocks and modify the market sentiment so that other investors would invest more money into these popular stocks.

5. Key Manipulated Stocks

Mehta targeted a number of key stocks to carry out his plan. Here are a few of them:
- ACC (Associated Cement Companies): One of the significant victims of Mehta’s manipulation was ACC. He manipulated the stock price using his influence and contacts, and the stock price increased from ₹200 to over ₹9,000 in a few months. This huge jump in stock prices was due to heavy buying and circular trading, creating a misconception about demand for the stock.
- Sterlite Industries: Sterlite Industries is yet another Indian company whose stock price was manipulated by Harshad Mehta. He inflated the price of the stock from INR 30 to INR 1,500 by using the funds borrowed from banks. Artificial demand created through circular trading and heavy buying caused the share price of Sterlite to increase tremendously, though there was no actual change in the real financial health of the company.
- Videocon: Videocon, a leading manufacturer of large electricity appliances and electronics, was also targeted by Harshad Mehta. The stock price of Videocon increased from INR 45 to INR 2,000. This price increase caught the attention of other retail investors who believed that the stock was going very well, only to find themselves losing money when the bubble burst.
Key Figures Involved in Scam 1992

Following are the number of key players either involved or not involved knowingly in the Harshad Mehta scam Story:
- Harshad Mehta: He was the mastermind behind the scam. His innovative thinking and illegal ways helped him in manipulating the market quite successfully. His strategies exploited the loopholes in the regulatory systems.
- S. Venkitaramanan: He was the Governor of the Reserve Bank of India at that time and was duty-bound to monitor and regulate the banking sector. RBI failed to detect the loopholes before the scam happened. He played an important role in introducing reforms after the scam so that such activities would not repeat again in the future.
- Sucheta Dalal: Sucheta Dalal was actively involved in unveiling the scam. She was a journalist with the Times of India. In April 1992, she wrote an article disclosing the connection between the high lifestyle of Harshad Mehta and skyrocketing stock prices, which helped the government authorities detect the fraud. Her work uncovered inconsistencies in the stock market and the banking sectors, causing the regulatory bodies to conduct investigations.
- P. V. Narasimha Rao: He was the Prime Minister of India when the fraud happened. He was accused of accepting a huge amount of money as a bribe from Mehta in order to get out of the legal cases. Though it was never established in the court, the case provided a political angle to the scam, redirecting the public concern on the strong nexus between politicians and the stock market manipulators.
Apart from these, there were many more characters involved in creating an atmosphere that helped Harshad Mehta flourish, which had a disastrous effect on the Indian stock market.

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Impact on the Indian Stock Market and Economy

The Indian stock market and the overall economy were deeply affected due to the Harshad Mehta scam Story. The impacts are as follows:

1. Stock Market Crash

The scam came to light in April 1992 and the public of India witnessed a stock market crash like never before. Indices on the Bombay Stock Exchange (BSE) crashed as the investors panicked and sold their investments. BSE Sensex lost nearly half of its value within weeks, which altogether erased investor wealth worth billions of rupees.

2. Regulatory Reforms

It was in the wake of the scam that the Indian government had to undertake drastic regulatory reforms. SEBI was made more potent, and new regulations to protect investors and increase transparency were introduced. Regulations for initial public offerings and trading practices became stiffer, with the stock market being overseen much more strictly.

3. Erosion of Investor Confidence

The scam significantly eroded investor confidence in the Indian financial system. Many retail investors, having invested their life savings into stocks, suffered huge losses. The negative sentiment due to the scam did not go away for years, and it took a lot of time to build investor confidence.

4. Economic Aftermath

The ripples of the scam extended beyond this as the wider economy felt its aftershocks. Financial institutions suffered enormous losses that resulted in tighter credit conditions and decelerated economic growth. The banking sector was subject to consequential inquiries and reforms focused on strengthening accountability and governance.

Public and Media Reaction

Public and Media response to the Harshad Mehta scam was highly profiled. The news of the scam splashed on the front pages of newspapers for months. Investigations unraveled minute details of Mehta’s fraudulent schemes. The 1992 scam attracted the following reactions:

1. Media Coverage

The scam received extensive media coverage on television news channels and newspapers as they analyzed its implications and the personalities involved. Indeed, the media played a pivotal role in enlightening the public on the scams that, more broadly, contributed to public outcry.

2. Public Outcry

The public reacted with shock and a sense of being betrayed. The investors were betrayed, and across the board, there was a demand for accountability and reform. Protests erupted in cities as people whose lives were affected by the scam demanded justice from authorities.

3. Cultural Representations

Films, documentaries, and even web series have been inspired by the saga of Harshad Mehta scam. As such, his legacy is firmly established as an icon of financial deception. The recent popularity of the web series “Scam 1992” has only sparked renewed interest in the events of 1992, bringing the story to a newer generation.

Read Also: Explainer on UPI Scams: Latest Scams, Economic Data, Government Actions, and Prevention Tactics

Conclusion

The Harshad Mehta Scam story is a lesson drawn from Indian financial history. It recounts how vulnerabilities in financial systems can take a tremendous toll when someone with enough ambition uses those loopholes. While his story may feature an individual’s financial success culminating in failure, it goes on to capture the intricacies associated with market manipulation and the need for strong regulations to protect investors.

The lessons from the events of 1992 made the Indian stock market change in crucial ways. Though the scars of this scam may never fully heal, the reforms undertaken after that have enabled the emergence of an even more resilient and transparent financial system.

Frequently Asked Questions (FAQs)
1. What was the total fraud amount in the Harshad Mehta scam 1992?
  The total fraud amount in the Harshad Mehta scam was approximately ₹4,000 crore.
2. How much money was lost in the Harshad Mehta scam?
  The Harshad Mehta scam amount is estimated at around ₹4,000 crore, approximately $1 billion, which includes losses of numerous banks and investors
3. Who was Harshad Mehta?
  Harshad Mehta was the mastermind behind the 1992 Indian Stock Market scam. Mehta manipulated the stock prices by using illegal methods, resulting in a stock market bubble, which finally culminated in huge losses to investors.
4. How did Harshad Mehta inflate stock prices?
  Mehta used the loopholes in the Ready Forward Deal mechanism, fake BRs, circular trading, and fabricated rumors about the stocks, hence artificially inflating the prices.
5. What were the impacts of the 1992 scam on the Indian economy?
  The scam led to a big stock market crash, loss of investor confidence, and reforms in the regulatory system of the financial sector, apart from increased scrutiny of banking practices.
6. How did the public and media react to the scam?
  The public’s response to the scam was characterized by outrage and shock, largely due to the extensive media coverage about the details and after-effects of the scam. Recently, the events of the scam served as a storyline of a web series, which has renewed the public interest in the scam.

October 8, 2024

Adidas Case Study: Business Model and Pricing Strategies

Each individual needs to exercise to stay healthy, and if you’re a health nut, then you must be spending a lot of time in the gym. However, comfortable exercise gear is essential, and “Adidas” is one of the first names that pop up when someone talks about sports shoes. Do you know the history of Adidas, one of the most popular shoe brands in the world?

In this blog, we’ll discuss Adidas and show you how it went from being a shoe producer to becoming the most popular sportswear brand worldwide.

Company Overview: Adidas

Adolf and his brother Rudolf Dassler created the Adidas company in 1924 under the name “Dassler Brothers Shoe Factory.” At first, the company’s primary concentration was on producing athletic footwear. In 1949, a dispute between the brothers resulted in the division of the business. Adolf Dassler went on to create Adidas, while his brother Rudolf founded Puma. Adidas shoes became popular when the German team wore them with screw-in studs and won the 1954 Football World Cup. This helped Adidas become a household name. The business became well-known over time when it was chosen as the official footwear partner of the World Cups. Due to fierce competition from Nike in the 1990s, the brand began producing fashion-oriented footwear and sportswear. The corporation has made several significant acquisitions, but the acquisition of Reebok in 2005 is seen as one of the most important ones since it allowed Adidas to compete with Nike and grow their market share in North America. The company established a digital presence and introduced a range of environmentally friendly products manufactured from recycled materials. The firm sold the Reebok brand in 2021 and started concentrating on its leading Adidas brand due to the COVID-19 pandemic and the tough economic conditions.

Business Model of Adidas

Adidas’s business Model is essential to its success. The following are the main components of their business model:-

Sponsorships – The company’s brand visibility is enhanced by sponsoring significant global events, such as FIFA and the Olympics.
Endorsements – The company endorses athletes like Mohamed Salah and Lionel Messi, which helps increase the popularity of the brand.
Collaborations – Adidas collaborates with influencers, artists, and celebrities, including David Beckham and Kayne West, to promote its brand.
Digital Marketing – The business uses a variety of hashtags and social media ads to promote its brand.
Event Marketing – Adidas also organizes events in many cities around the globe to engage with its target audience and increase brand awareness.
Customer Loyalty Program – This is another incredibly distinctive aspect of the business, whereby it uses several loyalty programs to reward its devoted customers.

Pricing Policy of Adidas

The company gains market share by utilizing a dynamic pricing strategy. Here is a summary of Adidas’ pricing strategy.-

Limited Edition – Adidas releases limited edition products in collaboration with different celebrities, which generates hype in the market.
Innovative Products – The business also specializes in high-performance footwear that uses cutting-edge technologies, such as 4D printing technology, etc. However, these products are expensive.
Value Pricing – The company also offers value-for-money products to draw mid-range customers and expand its market share.
Seasonal Discount – Adidas uses promotional offers, stock clearance deals, and seasonal reductions to move out of its inventory.
Geographical Pricing – The company’s pricing strategy varies depending on the location. For instance, prices in developed countries will be greater than in less developed countries.
Pricing Segment – Adidas categorizes its products into entry-level, mid-range, and luxury segments.

Conclusion

In conclusion, Adidas is one of the most popular shoe brands in the world. Adidas started operations as the “Dassler Brothers Shoe Factory” and was later renamed Adidas by Adolf Dassler. The company is known all over the world for its athletic apparel and sports footwear. As the leader in the athletic footwear industry, the firm maintains its position by using strategic pricing and marketing approaches. The business has also shifted to manufacturing products using eco-friendly and sustainable items.

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Frequently Asked Questions (FAQs)

Where is the headquarters of Adidas?
Adidas’ headquarters is in Bavaria, Germany.
What is the full form of Adidas and its slogan?
Adolf Dassler was also known by the nickname Adi Dassler, which he combined to form Adidas. The company’s motto is “Impossible is Nothing.”
Who is the CEO of Adidas?
Bjorn Gulden is the CEO of Adidas as of 28 September 2024.
Does Adidas own Reebok?
Adidas acquired Reebok in 2005 but later sold it again in 2021.
When did Adidas start its business in India?
Adidas started its business in India in 1996.

October 3, 2024

Zara Case Study: Business Model and Pricing Strategies

Clothing is more than just fabric but is also a form of expression. Stylish clothing is necessary if you want to appear and express yourselves well at both parties and meetings. There are many different fashion labels on the market, and “Zara” is one of them.

In this blog, we will provide an overview of Zara, including their pricing strategy and business approach.

Zara – An Overview

Amancio Ortega and Rosalia Mera launched the business in Spain in 1975. The company was originally named Zorba and was later renamed Zara. Initially, the company sold fashion clothes at lower prices, similar to the designs of high-end fashion brands. Later, in 1980, the company expanded rapidly in Spain and became a well-known name in the fashion industry. The company efficiently manages its supply chain by manufacturing clothes in small batches, which helps in saving inventory costs. In 1988, the company expanded operations outside Spain and opened its first branch in Portugal. In 1990, the business opened several stores in cities like Tokyo, New York, and Paris. In 2001, Zara’s parent company, Inditex, went public and was listed on the Spanish Stock Exchange. Amancio Ortega, the founder, rose to prominence and became one of the richest persons in the world after the IPO. The company began operating its online store in 2010 to take advantage of e-commerce technology. The company launched the “Join Life” campaign, which reflects the company’s promise to utilize only sustainable fabrics by 2025 and use only eco-friendly materials.

Business Model of Zara

Zara has a fashion-centric business model, and the company changes it according to market trends. The main components of Zara’s business model are as follows-

Supply Chain – The business guarantees that the product reaches the consumer on time because the company has an integrated supply chain, which includes distributors located all over the world.
Product Upgrade – The company reacts to the shifting fashion trends by launching new products in two to three weeks.
Designing of Products – With more than 700 internal designers, the organization produces more than 10,000 designs a year.
Production Policy – Due to the company’s restricted production of the dresses, a high turnover ratio is guaranteed as limited supply creates urgency among customers.
Product Policy – The corporation doesn’t manufacture in large quantities, which allows it to increase production if a new product succeeds and restrict output if a product fails.
Customer Satisfaction – The company requests feedback from customers regularly to enhance the quality of its products. Additionally, the company’s stores must submit daily sales reports to the company’s headquarters.
Limited Advertising – The company opens its store in prime locations in the city, relies heavily on word-of-mouth advertising, and spends very little on product advertising.
E-Commerce – The company has invested in developing its e-commerce platforms to further expand its operations in regions where Zara’s physical stores are not present.

Pricing Strategies of Zara

A company’s pricing strategy is an essential component of its business model, especially if it is associated with the fashion industry, which can be extremely competitive. Zara’s pricing strategy is mentioned below:

Affordability – The company’s premium goods are accessible to the general public while still giving their customers a feeling of exclusivity due to restricted production.
Market Pricing – The company adjusts the product’s price according to the nations it operates in. For instance, in developed countries, prices are often higher than in developing countries.
Limited Discounts – Zara only offers discounts after the conclusion of a specific season to clear out their inventory. In general, they do not offer frequent discounts in their stores.
Cost Efficient – Zara has control over the production process, which allows them to reduce costs and increase their profit margins.

Conclusion

Zara is an excellent example of how a regional fashion brand can become one of the world’s leading fashion brands through integrated operations, innovative designs, and effective pricing strategies. The company’s strategy to manufacture products in small batches generates urgency among customers and helps it maintain its exclusive image. The company’s commitment to sustainability and the use of eco-friendly materials will be beneficial to the environment and will also help the brand attract new customers.

Frequently Asked Questions (FAQs)

Who founded Zara?
Amancio Ortega and Rosalia Mera founded Zara in 1975.
Is Zara an Indian company?
Zara is a global fashion brand that is owned by the Spanish fashion company Inditex. Tata’s Trent formed a joint venture with Inditex to run Zara stores in India.
When did Zara start their operation in India?
Zara began operations in India in May 2010 when it opened its first location in New Delhi.
Which company owns Zara?
Inditex is a Spanish company that owns Zara.
Who are Zara’s biggest competitors in India?
Zara’s biggest competitors in India include H&M, Reliance Trends, Zudio, GAP, Vero Moda, Marks and Spencer, etc.

October 3, 2024

Procter & Gamble Case Study: Business Model, Financial Statements, And SWOT Analysis

Procter & Gamble Hygiene and Health Care, a subsidiary of Procter & Gamble, has played a vital role in the evolution of hygiene standards in India. This blog aims to present a complete case study on P&G Hygiene and Health Care Ltd., including a company overview, business model, and products it provides.

Procter & Gamble Hygiene & Health Care Ltd. Overview

Procter & Gamble Hygiene & Health Care Limited, an Indian subsidiary of US-based multinational company P&G, was incorporated on 20 July 1964 and is headquartered in Mumbai. The company operates in the FMCG sector in India, and its core operations are manufacturing and selling packaged FMCG products like feminine hygiene and health care products. The company has created a reputation for selling high-quality products to meet the ever-changing needs of consumers. P&G Hygiene and Health Care is one of the best FMCG companies in India.

Business Model of Procter & Gamble Hygiene and Health Care Ltd

Procter & Gamble Hygiene and Health Care Ltd. operates a very robust business model centred around product innovation, brand strength, and wide distribution. This results in the company generating revenue through personal care products, such as sanitary napkins, healthcare items, and beauty products, which amount to around 70% of the sanitary protection segment.

Strong brand loyalty and a portfolio of brands like Whisper and Vicks have contributed to its stable revenues. The company uses both conventional retail channels and e-commerce platforms. This helps ensure a very large outreach and accessibility for consumers across all strata of urban and rural society, further strengthening overall sales performances.

Products Portfolio of Procter & Gamble Hygiene and Health Care Ltd

The company operates in two segments: Health care products and Hygiene products. The hygiene products segment consists mainly of feminine hygiene products and other skin care hygiene products, whereas the health care segment comprises ointments and creams, cough drops and tablets, etc.

As of 2024, the company portfolio includes some very familiar brands such as Whisper, with more than 25% market share in sanitary napkins and Vicks, a popular healthcare product. The beauty segment includes Olay, while Gillette products cover the grooming segment. With over 40 different items in various categories, the company has a wide customer base. The company has such a big customer base mainly due to the firm’s line of women’s hygiene, oral care, and health supplements. P&G’s focus on quality and innovation helps the company build a loyal consumer base.

Market Details of Procter & Gamble Hygiene and Health Care

Current Market Price	INR 16,579
Market Capitalization (In Crores)	INR 53,816
52 Week High	INR 19,250
52 Week Low	INR 15,306
Book Value	INR 239
P/E Ratio (x)	79.7

(as of 30 September, 2024)

Financial Statements of Procter & Gamble Hygiene and Health Care Ltd

Income Statement

Particulars	June 2024	June 2023	June 2022
Sales	4,205	3,917	3,900
Total Income	4,257	3,958	3,925
Total Expenditure	3,291	3,107	3,123
Net Profit	675	678	575

(The figures mentioned above are in INR crores unless mentioned otherwise)

Balance Sheet

Particulars	June 2024	June 2023	June 2022
Total Non-Current Assets	659	642	547
Total Current Assets	1,200	1,496	1,134
Total Shareholders Funds	775	946	738
Total Non-Current Liabilities	103	106	86
Total Current Liabilities	981	1,085	858

(The figures mentioned above are in INR crores unless mentioned otherwise)

Cash Flow Statement

Particulars	June 2024	June 2023	June 2022
Cash flow from Operating activities	471	825	573
Cash flow from Investing activities	1	-9	-26
Cash flow from Financing activities	-862	-477	-568

(The figures mentioned above are in INR crores unless mentioned otherwise)

Key Performance Indicators (KPIs)

Particulars	June 2024	June 2023	June 2022
Net Profit Margin (%)	16.05	17.30	14.75
Return on Equity (%)	87.11	71.68	78.06
Return on Capital Employed (%)	110.03	80.85	97.31
Current Ratio (X)	1.22	1.38	1.32
EV/EBITDA (x)	52.19	49.99	50.19

SWOT Analysis of Procter & Gamble Hygiene and Health Care Ltd

Strength

Strong Portfolio of Brands: P&G has a broad portfolio of well-known brands around the world, like Whisper and Vicks, that command significant market shares.
Robust R&D Capabilities: The company spends a great amount on R&D, which supports new ideas and the creation of new and better products for its end-users.

Weakness

High Operational Costs: Due to intense competition in these segments, they are experiencing high production and distribution costs, which may affect performance.
Dependence on Mature Markets: Developed countries account for a large portion of P&G’s sales, which makes it susceptible to economic instability in those countries.

Opportunities

Changing Health Constraints: A higher degree of knowledge of hygiene and health will lead to more consumers seeking health-related P&G products.
Expansion in Emerging Markets: Emerging regions are commonly characterized by increased disposable income and, therefore, present a growth opportunity for P&G.

Threats

Regulatory Hurdles: Product safety and environmental concerns have a lot of regulatory rules associated with them that P&G must follow. Strict regulations result in high operating costs and make product development more complex.
Changing Consumer Behaviour: Consumer shifts toward natural and organic products can threaten the existing product lines of the company.

Conclusion

Procter & Gamble Hygiene and Health Care Ltd. stands out due to its strong portfolios of brands, commitment to innovation, and its direction toward sustainability and e-commerce. Even with such harsh conditions coming in the form of intense competition and economic fluctuations, the strategic focus on sustainability and e-commerce development has helped the company grow significantly over the years. Procter & Gamble is in a very great position to continue as a market leader and constantly looks to reach new consumer bases with improved products.

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Frequently Asked Questions (FAQs)

How does P&G maintain its product quality?
P&G follows very stringent quality standards through highly advanced research and development as well as aggressive testing on every product.
Is P&G committed to sustainability?
Yes, P&G has a strong commitment towards sustainability. For example, the company aims to use 100% recyclable or reusable packaging by 2030.
What is P&G’s market share in the sanitary napkin category?
P&G has about 25% of the market share in the sanitary napkin category due to its flagship brand, Whisper.
How relevant was P&G’s investment in R&D for the company?
Investments in research and development (R&D) made by P&G led to new product offerings that had positive responses from the market, enhanced customer satisfaction, and strengthened the firm’s competitive advantage.
In what ways did P&G reach out to the consumers regarding the hygiene initiatives?
P&G reached out to consumers by conducting surveys, community programs and social media & feedback pages.

October 2, 2024

Intel Case Study: Marketing Strategy and Pricing Strategy

No matter the brand of computer or laptop you own, whether you enjoy playing video games on it or use it for business purposes, most systems are powered by a single US-based manufacturer called “Intel Corporation.”

In this blog, we will delve into an Intel case study, exploring its costs and marketing tactics in Detail.

Intel Overview

Gordon Moore and Robert Noyce, with the help of an investor named Arthur Rock, established Intel in 1968. The company first concentrated on producing memory chips, and in 1971, it unveiled the Intel 4004, the first microprocessor in history. Additionally, they launched the x86 family of microprocessors, which went by the name of Intel’s 8088 chip and was found in nearly all personal computers. The corporation launched a Pentium series of processors during the dot com boom, increasing the value of its brand among customers. The company expanded its product line beyond processors in 2000, adding technologies such as networking, graphics, and mobile computing. AMD is another fierce rival of the corporation in the microprocessor market. The company lost out on a chance to get into the mobile chip business, but thanks to its Xeon processor, it dominated the cloud computing and data center markets. The corporation has purchased numerous companies throughout the world. For example, the company acquired Mobileye in 2017 for $15.3 billion to become a key player in the autonomous driving and advanced driver-assistance systems (ADAS) markets. The company’s CEO unveiled the IDM 2.0 plan in 2020, which calls for the company to manufacture chips for other businesses and consolidate its market position. However, AMD and other players like Apple, with their competitive products, pose a severe threat to the corporation. The headquarters of the corporation are located in California, USA.

Marketing Strategy of Intel

The Intel marketing strategy has played a pivotal role in establishing the company as a global leader in the technology sector. The following are some essential components of Intel’s marketing strategies:

Brand Recognition – The business launched a successful marketing effort called “Intel Inside” in 1991, which helped it establish itself as the industry leader. Even today, “Intel” stands for performance and quality.
Segment Marketing – Intel provides various goods to meet the demands of every user. For example, they manufacture processors for laptops and desktops and also make graphic cards for other applications.
Strategic Partnership – The company has partnered with several equipment manufacturers, including Dell, HP, and Lenovo, to supply them with Intel processors.
Digital Marketing – To sell its products, the company also uses digital marketing and collaborates with various tech influencers and reviewers.
Event Marketing – The organization hosts events worldwide on different tech platforms to engage with IT experts, developers, industry professionals, etc.

Pricing Strategies of Intel.

Intel Corporation maintains its leadership position in the market thanks to its pricing methods. The following are their various pricing schemes-

Premium Pricing – High-performance Intel Core i7, i9, and Xeon processors are among the best processors available and are thus priced at a premium.
Segment Pricing – The corporation sets its prices in response to the customers’ requirements. For instance, their mid-range pricing will cover items like i3 and i5 processors; on the other hand, buyers will pay more for their high-end processors, such as K series processors.
Dynamic Pricing – The business has a dynamic price structure and adjusts the prices of its products according to the locations it serves, i.e., offering its products at lower prices in developing nations than in developed ones.
Product-Based Pricing – Intel categorizes its products based on their features and prices them differently. For example, it charges differently for processors than it does for cloud computing and data application solutions.

Conclusion

Finally, Intel has grown from a memory chip producer to the largest microprocessor manufacturer in the world, making it a household name. The company caters to all customer groups by offering high-end processors for gaming and business use, cloud storage, etc. The business is up against fierce competition from recent entrants in the market, such as AMD and Apple. Nevertheless, their marketing approaches have enabled them to establish themselves as the industry leader.

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Frequently Asked Questions (FAQs)

Who is the CEO of Intel Incorporation?
The CEO of Intel Incorporation is Patrick P. Glesinger as of 29 September 2024.
What is the full form of Intel?
The full form of Intel is Integrated Electronics.
Where is the headquarters of Intel Incorporation situated?
The headquarters of Intel is situated in California, USA.
Can I buy Intel stock in India?
Yes, you can open a Demat account with a broker that facilitates trading in foreign stocks to purchase Intel shares.
Is Intel’s share listed on the Indian Stock Exchange?
No, Intel’s shares are listed on the NASDAQ stock exchange in the United States, not the Indian Stock Exchange.

October 2, 2024

Case Study on Walmart Marketing Strategy

In today’s fast-paced world, an individual may not find time to visit different stores to buy all the items on his shopping list. What if we told you that there is a superstore that offers everything you need—from groceries to electronics—and that they do it at the most affordable price?

In this blog, we’ll offer an overview of the world’s biggest superstore, “Walmart,” and its marketing tactics.

Walmart Overview

Sam Walton established Walmart in 1962. They established their first location in Arkansas, usually provide their customers with low-cost merchandise, and prioritize effective supply chain management and logistics. In order to fund its expansion, the firm went public in 1970 and was listed on the US Stock Exchange. By the end of the year, it had approximately 250 stores and recorded a $1 billion sale. The company uses cutting-edge technology to manage its supply chain distribution and inventory, and it quickly became one of the USA’s fastest-growing retailers. By 1991, they had opened additional locations in Mexico and Canada, made investments in e-commerce, and developed a website. Walmart grew quickly in the 2000s, entering markets including China, Germany, and the UK, and by that time, they had generated $200 billion in revenue.

Nevertheless, their rare forays into nations like South Korea and Germany proved unsuccessful, forcing them to leave those markets. In order to strengthen their e-commerce operations and market reach, the company purchased Jet.com. In 2018, it also acquired a majority stake in Flipkart. The company was able to grow its online business during the COVID-19 pandemic because most of its physical stores were closed worldwide. At the same time, it introduced contactless shopping and Walmart+, a membership program, to compete with rival Amazon Prime.

Walmart Marketing Strategies

The marketing strategy of the company focuses on its core value of offering the lowest price to its customers; a few of its strategies are mentioned below-

Lowest Price – Customers can compare its prices with other stores and see that it continually strives to deliver products at the lowest price.
Promotions and Discounts – The company offers weekly ad circulars with special discounts highlighted in them, as well as online coupons and promo codes.
Loyalty Program – The company provides exclusive discounts and loyalty benefits to its regular customers to keep them as clients for extended periods.
Membership Program – Similar to Amazon, the company offers memberships to its consumers and provides benefits like free shipping and other perks.
Store Experience – The company’s stores have a neat, orderly atmosphere and a variety of amenities. Additionally, their customer service representatives are incredibly polite and helpful to their clients.
Digital Marketing – Walmart’s online marketing team consistently shares interesting information on various social media networks.

Walmart Product Portfolio

The company offers a wide range of products to its customers; the categorization of the products are as follows-

Groceries – The company delivers all types of grocery products, including meat, dairy, snacks, frozen, packaged food, etc., to its consumers. In addition, the corporation provides its clients with private-label brands at affordable prices. Bakery and healthcare products are also available at Walmart locations.
Footwear and Dresses – Besides providing a large assortment of clothing from different brands in their stores, the company also offers private label products in the footwear and clothing categories.
Furniture and Home Décor – A Walmart store also has a variety of other home décor products in addition to furniture.
Electronics – Walmart also offers electrical goods, such as video games, air conditioners, and televisions. Additionally, it sells CCTV and other home security solutions.
Sports Equipment – The company also sells fitness equipment at its stores, like baseball, fishing gear, accessories, and athletic wear.

Conclusion

Finally, it should be noted that Walmart has grown from a bargain retailer to one of the biggest retail chains in the world due to creative marketing strategies and cutting-edge technology. The business has encountered difficulties in a few nations that have forced them to suspend operations. Walmart has a devoted customer base as they have consistently provided the lowest prices on a wide range of products.

Frequently Asked Questions (FAQs)

Is Walmart an Indian Company?
No, Walmart is a US-based multinational retail corporation that operates various retail stores worldwide.
Is Flipkart and Walmart the same company?
No, Flipkart is an Indian online e-commerce platform, and Walmart is a US-based retail store operator. However, in 2018, Walmart acquired a controlling stake of 77% in Flipkart.
Who are the major competitors of Walmart?
Walmart faces intense competition from companies like Amazon, Alibaba, Best Buy, Reliance Retail, Spencer, etc.
Who is the CEO of Walmart?
Doug McMillion is the current CEO of Walmart as of 26 September 2024.
Which company is bigger: Amazon or Walmart?
Walmart recorded $648 billion in revenue for the previous year, while Amazon claimed $575 billion. However, Walmart’s growth rate is only 6%, while Amazon’s is 12%, meaning that Amazon will eventually surpass Walmart.

October 2, 2024

Apollo Hospitals Case Study : Business Model, Financial Statements, And SWOT Analysis

Apollo Hospitals is touching lives with its mission of delivering compassionate and innovative healthcare, its focus on advanced medical technologies, and its commitment to shaping the future of the healthcare industry while making a meaningful impact on patients’ lives.

In this blog, we will discuss Apollo case study, its business model, and its services. Moreover, we will go over their financial information and conduct a SWOT analysis.

Apollo Hospitals – An Overview

Apollo Hospitals was founded in 1983 by Dr. Prathap C. Reddy with the vision of making quality healthcare available in India. It was a time when Indians often traveled abroad for advanced medical treatments. Apollo made these services available in India, focusing on both quality and affordability. As the nation’s first corporate hospital, Apollo Hospitals is acclaimed for establishing the private healthcare revolution in the country. Apollo Hospitals has emerged as Asia’s primary integrated healthcare services provider and has a strong presence across the healthcare ecosystem, including hospitals, pharmacies, primary healthcare & diagnostic clinics, etc. It has a strategic focus on several areas, including:

Specialized Services: Apollo has developed several specialist healthcare services in cardiology, oncology, neurology, orthopedics, and transplant services. These specialized services attract patients from India and abroad and encourage medical tourism.
Digital Healthcare Services: Apollo recognized the potential of digital healthcare services after COVID-19 and launched its online platform Apollo 24/7, which allows patients to access healthcare services online. The company increasingly focuses on integrating AI, telemedicine, and data analytics to improve patient experiences.
Franchising: Apollo has expanded into tier 2 and tier 3 cities through a mix of owned and franchised hospitals, helping to promote its brand and provide healthcare services in underserved and untapped areas.

Business Model and Services of Apollo Hospitals

Apollo business model revolves around a multi-specialty healthcare model, offering a wide range of services across hospitals, pharmacies, diagnostics, and even telemedicine, including:

Hospital Chain: Apollo has one of the largest hospital chains in India, with over 70 hospitals across the country. These hospitals provide a full range of healthcare services, from routine health checkups to complex surgeries.
Pharmacies: Apollo’s massive pharmacy chain includes over 4,000 outlets. It is one of the top players in the retail pharmacy sector in India.
Health Insurance: Apollo entered the health insurance business with Apollo Munich Health Insurance, which later merged with HDFC Ergo General Insurance, broadening its impact on the healthcare ecosystem.
Telemedicine & Health Tech: The Apollo 24/7 platform offers teleconsultations, online pharmacy orders, and health monitoring, positioning it as an online health-tech leader.
Education and Training: Apollo has set up numerous nursing and medical training institutes to ensure a constant supply of skilled medical professionals.