INTRODUCTION

Do you know that there are millions of unemployed youth in the country and by the time
you graduate, this number would have increased substantially? Do you want to be part of
that group which keeps knocking from pillar to post, checking with employment
exchanges, relatives, friends, and neighbours and still not able to get a job to their liking
and then settle for a second or third rate job?
You can also choose to be like Mr. atel of !irma who was a chemist"s assistance and has
a #s. $%&& crore company today. Did you know that the original Mr. 'ata was a cobbler?
(nd now has stores in more than )& countries all over the world. *r you could be like
Dhiru bhai (mbani who started life as a clerk in a +rench company in (den. ,e was not
born into a business family nor did he possess an M'( degree and yet, he is a household
name in -ndia and figures in the +orbes list of the richest (sians. .akshmi Mittal, the
steel giant, /atbir 'hatia of ,otmail fame and !arayan Murthy of -nfosys are some other
names in the endless list you could choose from.
-f your answer is yes then you can definitely opt for a career in entrepreneurship. (nd let
us remind you that this career opportunity is not only for boys but also for girls 0 all those
girls who think smart, are ready to act and script the story of their own life 0 like /hehna1
,ussain or #itu 2umar or 2iran Majumdar /haw.
(n entrepreneur is a person who starts an enterprise. ,e searches for change and
responds to it. ( number of definitions have been given of an entrepreneur0
3he economists view him as a fourth factor of production along with land labour and
capital.
3he sociologists feel that certain communities and cultures promote
entrepreneurship like for example in -ndia we say that 4ujaratis and /indhis are very
enterprising.
/till others feel that entrepreneurs are innovators who come up with new ideas for
products, markets or techni5ues.
3o put it very simply an entrepreneur is someone who perceives opportunity, organi1es
resources needed for exploiting that opportunity and exploits it. 6omputers, mobile
phones, washing machines, (3Ms, 6redit 6ards, 6ourier /ervice, and #eady to eat +oods
are all examples of entrepreneurial ideas that got converted into products or services.
/ome definitions of an entrepreneur are listed below7
Stems: from the +rench word 8entrependre" meaning one who undertakes or one who is a
8go0between"
Richard Cantillon7 (n entrepreneur is a person who pays a certain price for a product to
resell it at an uncertain price, thereby making decisions about obtaining and using the
resources while conse5uently admitting the risk of enterprise.
J.B. Say7 (n entrepreneur is an economic agent who unites all means of production0 land
of one, the labour of another and the capital of yet another and thus produces a product.
'y selling the product in the market he pays rent of land, wages to labour, interest on
capital and what remains is his profit. ,e shifts economic resources out of an area of
lower and into an area of higher productivity and greater yield.
Schumpeter: (ccording to him entrepreneurs are innovators who use a process of
shattering the status 5uo of the existing products and services, to set up new products,
new services.
David McClleland7 (n entrepreneur is a person with a high need for achievement 9!0
(ch:. ,e is energetic and a moderate risk taker.
Peter Drucker7 (n entrepreneur searches for change, responds to it and exploits
opportunities. -nnovation is a specific tool of an entrepreneur hence an effective
entrepreneur converts a source into a resource.
Kilby: ;mphasi1es the role of an imitator entrepreneur who does not innovate but
imitates technologies innovated by others. (re very important in developing economies.
lbert Shapero7 ;ntrepreneurs take initiative, accept risk of failure and have an internal
locus of control.
!. Pinchot7 -ntrapreneur is an entrepreneur within an already established organi1ation.
Peter Drucker ;ntrepreneurship is defined as 8a systematic innovation, which consists in
the purposeful and organi1ed search for changes, and it is the systematic analysis of the
opportunities such changes might offer for economic and social innovation."
;ntrepreneurship can be described as a process of action an entrepreneur undertakes to
establish his enterprise. ;ntrepreneurship is a creative activity. -t is the ability to create
and build something from practically nothing. -t is a knack of sensing opportunity where
others see chaos, contradiction and confusion. ;ntrepreneurship is the attitude of mind to
seek opportunities, take calculated risks and derive benefits by setting up a venture. -t
comprises of numerous activities involved in conception, creation and running an
enterprise.
;ntrepreneurship is a discipline with a knowledge base theory. -t is an outcome of
complex socio0economic, psychological, technological, legal and other factors. -t is a
dynamic and risky process. -t involves a fusion of capital, technology and human talent.
;ntrepreneurship is e5ually applicable to big and small businesses, to economic and non0
economic activities. Different entrepreneurs might have some common traits but all of
them will have some different and uni5ue features.
-f we just concentrate on the entrepreneurs then there will be as many models as there
are ventures and we will not be able to predict or plan, how and where, and when these
entrepreneurs will start their ventures.
;ntrepreneurship is a process. -t is not a combination of some stray incidents. -t is the
purposeful and organi1ed search for change, conducted after systematic analysis of
opportunities in the environment. ;ntrepreneurship is a philosophy0 it is the way one
thinks, one acts and therefore it can exist in any situation be it business or government or
in the field of education, science and technology or poverty alleviation or any others.
R"#$ "% $&'R$PR$&$(R )& $C"&"M)C D$*$#"PM$&'
3he industrial health of a society depends on the level of entrepreneurship existing in it.
( country might remain backward not because of lack of natural resources or dearth of
capital 9as it is many times believed: but because of lack of entrepreneurial talents or it
inability to tap the latent entrepreneurial talents existing in that society. ;ntrepreneurs
historically have altered the direction of national economies, industry or markets0 <apan,
/ingapore, 2orea, 3aiwan to name a few.
$conomic Development + ;ntrepreneurship is basically concerned with creating wealth
through production of goods and services. 3his results in a process of upward change
whereby the real per capita income of a country rises overtime or in other words
economic development takes place. 3hus entrepreneurial development is the key to
economic development. -n fact it is one of the most critical inputs in the economic
development of a region. -t speeds up the process of activating factors of production
leading to a higher rate of economic growth, dispersal of economic activities and
development of backward regions. -f a region is unable to throw up a sufficient number
of entrepreneurs then alien entrepreneurs usually step in to provide goods and services
needed by the people. ,owever the profits earned by these entrepreneurs are usually not
ploughed back but repatriated to their place of origin. (s a result development in that
region cannot take place. Dr. M.M. (khori refers to this practice as 83he .eech ;ffect".
3he above reiterates the importance of entrepreneurship development for fuelling
economic growth of a region.
;ntrepreneurship begets and also injects entrepreneurship by starting a chain reaction
when the entrepreneur continuously tries to improve the 5uality of existing goods and
services and add new ones. ;.g. when computers came into the market there was
continuous improvement in the models, their functions etc. like first generation
computers, personal computers, laptops, palmtops etc.
!ot only had this fostered the development of the software industry, computer education
institutes, computer maintenance and stationery units etc. but also other industries like
banking, railways, education, travel, films, medical and legal transcriptions, business
process outsourcing 9'*s: etc. -n this manner by harnessing the entrepreneurial talent a
society comes out of traditional lethargy to modern industrial culture. -ndia needs
entrepreneurs to capitali1e on new opportunities and to create wealth and new jobs.
$ducation + 3owards the end of the sixties, two significant contributions were made in
the field of entrepreneurship .*ne was that there is a positive linkage between
entrepreneurship and economic development and the other was regarding the emergence
of a strong hypothesis that entrepreneurship can be developed through planned efforts=.
6onse5uently planners reali1ed that absence of a strong entrepreneurial base acts as a
serious handicap in the industrial development of a region. 3he identification and
development of first generation entrepreneurs through ;ntrepreneurial Development
rogrammes is an important strategy.
3here is a growing reali1ation that presence of resources and favourable government
policies cannot automatically manufacture economic development. -t is the
entrepreneurial spirit of the people, which can transform the economy of that region.
'oth the 5uantity and 5uality of entrepreneurs are of utmost significance for achieving
the goal of economic development. 3he myth that entrepreneurs are born with some
innate traits is fortunately no longer held. You will learn more about this in the lesson on
motivation. Many research studies have brought out that entrepreneurship can be taught
and learned. ;ntrepreneurship is a discipline and like all disciplines it has models,
processes and case studies, which can help an individual to study this subject. 3he
necessary competencies re5uired of a successful entrepreneur can be ac5uired through
training and development. !umerous courses in entrepreneurship are being taught all
over the world in schools and colleges, seminars and conferences are being organi1ed and
;Ds are being conducted. 3he thinking today is why just create managers why not
create people who can absorb managers. *ne can ac5uire the traits and learn the skills for
becoming an entrepreneur .
FUNCTIONS OF ENTREPRENEUR
(n entrepreneur fre5uently has to wear many hats. ,e has to perceive opportunity, plan,
organi1e resources, and oversee production, marketing, and liaison with officials. Most
importantly he has to innovate and bear risk. 3he main functions of an entrepreneur are as
follows7
,. )nnovation7 -nnovation is one of the most important functions of an entrepreneur
according to /chumpeter. (n entrepreneur uses information, knowledge and intuition to
come up with new products, new methods of reducing costs of a product, improvement in
design or function of a product, discovering new markets or new ways of organi1ation of
industry. 3hrough innovation, an entrepreneur converts a material into a resource or
combines existing resources into new and more productive configurations. -t is the
creativity of an entrepreneur that results in invention 9creation of new knowledge: and
innovation 9application of knowledge to create new products, services or processes.:
/ystematic innovation means monitoring the following for innovative opportunity7
3he unexpected success or failure or any unexpected outside event, >e.g. when the -3
bubble burst the -3;/ sector started growing.?
-nnovation based on process need 9e.g. plate based cameras, film based cameras, digital
cameras:
6hanges in industry and market structure 9e.g. video cassette @6D, D@D, 'lue ray disc:
Demographics changes >e.g. increasing number of working women and nuclear families
in most metropolitan cities?
!ew knowledge >e.g. entium chip?
-. Risk and uncertainty bearin.: (ccording to ,o1elist an entrepreneur performs the
function of risk and uncertainty bearing. ;very decision pertaining to development of
new products, adapting new technologies, opening up new markets involves risk.
Decision0making in an environment of uncertainty re5uires anticipation of risk. rofit is
said to be the reward for anticipating and taking such risks. ,owever it is pertinent to
mention that the entrepreneur is not a gambler, he only takes calculated risks. (n
entrepreneur develops the art of decision0making under conditions of uncertainty as a
matter of survival.
/. "r.ani0ation buildin.: (n entrepreneur has to organi1e men, material and other
resources. ,e has to perform the functions of planning, co0ordination and control. ,e has
to use his leadership 5ualities to build a team, generate resources and solve problems.
Aith his organi1ational skills an entrepreneur builds an enterprise from scratch, nurtures
it and makes it grow. ,is vision sows the seeds for a sound and vibrant organi1ation and
synergies are built in he enterprise. (ccording to 2ilby in a developing country even the
imitator entrepreneurs are very important and the entrepreneurial role encompasses the
following7
erception of market opportunities
4aining command over scarce resources
urchasing inputs
Marketing the products
Dealing with bureaucrats
Managing human relations within the firm
Managing customer and supplier relations
Managing finance
Managing production
(c5uiring and overseeing assembly of the factory
-ndustrial engineering
Bpgrading process and product.
ENTREPRENEURSHIP AS CAREER OPTION
3he vast majority of human beings direct their activities towards earning a living,
generating wealth and improving their standard of living. You can choose your career
from two broad categories of options C Aage ;mployment or ;ntrepreneurship. 3he term
8career"
signifies a continuous, ever evolving, ever expanding opportunity for personal as well as
business growth and development. Ae may define entrepreneurship as a career in your
own business 9Y*': rather than wage employment 9<*': .-f you opt for a job then you
ill work for others. -n case you opt for entrepreneurship you will be your own boss.
-n case of wage employment one is engaged in routine work carried on for others for
which he receives salary or wages. ,e has to follow instructions and execute plans laid
down by his superior. *ne can choose to be employed in 4overnment /ervice or the
ublic /ector or the rivate sector. /ome of the main differences between
entrepreneurship and wage employment career options are as under7
1a.e $mployment $ntrepreneurship
Aork for *thers *wn 'oss
+ollow -nstructions Make own plans
#outine <ob 6reative activity
;arning is fixed, 6an be negative
never negative sometimes, generally surplus
Does not create wealth 6reates Aealth,
contributes to 4D.
6an choose from0 6an choose from0
4overnment service -ndustry
ublic /ector 3rade or
rivate /ector /ervice ;nterprise
-n the context of employment generation the three terms0 -ncome generation, /elf
employment and ;ntrepreneurship are often used interchangeably.
)ncome .eneration is the initial stage in the entrepreneurial process in which one tries to
generate surplus or profit. 3hey are often taken on part0 time or casual basis to
supplement income e.g. a man with some surplus money might put his money in a fixed
deposit account in a bank or a chit 0fund to earn some interest.
Sel2+employment is the second stage in the entrepreneurial process and refers to an
individual"s fulltime involvement in his own occupation. e.g. a person who starts a tea
shop and remains happy and satisfied and has no plans to add on any other items like
samosas, buns, soft drinks etc. or to grow in any other manner9e.g. supplying
teaDcoffeeDsandwiches to others in the vicinity:.
$ntrepreneurship is the terminal stage of the entrepreneurial process wherein after
setting up a venture one looks for diversification and growth. (n entrepreneur is always
in search of new challenges. (n entrepreneur is not a routine businessman he might not
have resources but he will have ideas. ,e is innovative and creative. ,e can convert a
threat into an opportunity. /mall businessmen might shut0down or change his business if
he anticipates losses but an entrepreneur will try again after analy1ing the situation. *n
the other hand an entrepreneur can leave a perfectly running business to start another
venture if he so desires.
+unctionally all entrepreneurs are self0employed and income generating persons but the
reverse is not true0 all self0employed and income generating persons are not
entrepreneurs. -f seen on a continuum, income generation, self0employment and
entrepreneurship can be considered as the initial, middle and final stages of the
entrepreneurial growth process. -ncome generating experience encourages self0
employment, which in turn facilitates graduating into entrepreneurship.
)&'R"D(C')"&
3hings are easier said than doneE 3o reali1e our dreams and that also in such a grand
manner is really a tough task. 3he founders of +lipkart have probably con5uered their
dreams with the ama1ing success of +lipkart. +lipkart is something which has really
opened up the -ndian e0commerce market and that also in a big way.
+lipkart was co0founded by /achin 'ansal and 'inny 'ansal in *ct $&&F. 'oth are
graduates from --30Delhi and have prior work experience in (ma1on.com 3hey both
were solid coders and wanted to open a portal that compared different e0commerce
websites, but there were hardly any such sites in -ndia and they decided to give birth to
their own e0commerce venture 0 +lipkart.com
3hus was born +lipkart in *ct $&&F with an initial investment of G lac >co0founders
savings?. -t was never going to be easy since -ndia has had bad past experiences with e0
commerce trading. -t was not an easy segment to break into, people were very particular
in paying money for something which they had not seen and received. 3he trust was
missing in the -ndian customers. /o what +lipkart had to do was to instill trust and faith
in their customers. (nd they did exactly the same, will discuss more on how they did so
later in the post.
+lipkart began with selling books, since books are easy to procure, target market which
reads books is in abundance, books provide more margin, are easy to pack and deliver, do
not get damaged in transit and most importantly books are not very expensive, so the
amount of money a customer has to spend to try out oneHs service for one time is very
minimal. +lipkart sold only books for the first two years.
+lipkart started with the consignment model >procurement based on demand? i.e. they had
ties with $ distributors in 'angalore, whenever a customer ordered a book, they used to
personally procure the book from the dealer, pack the book in their office and then
courier the same. -n the initial months the founderHs personal cell numbers used to be the
customer support numbers. /o, in the start they tried their best to provide good service,
focus on the website 0 easy to browse and order and hassle0free, and strove hard to
resolve any customer issues. /ince there were not any established players in the market,
this allowed them a lot of space to grow, and they did in fact grew very rapidly.
+lipkart had a revenue of G crore in +Y $&&I 0 $&&J, $& crore in +Y $&&J 0 $&=&, F% crore
in +Y $&=& 0 $&==, and the revenue for +Y $&== 0 $&=$ which ends on )= Mar $&=$ is
expected to be %&& crore. 3his is indeed a massive growth. 3he company targets revenues
of %&&& crore by $&=%.
3he company started from $ employees and now has around G%&& employees.
+lipkart started with consignment model as discussed above, since most of the customer
issues like delivery delays etc. result from procurement model, the company started
opening its own warehouses as it started getting more investments. 3he company opened
its first warehouse in 'angalore and later on opened warehouses in Delhi, 2olkatta and
Mumbai. 3oday the company works with more than %&& suppliers. (s on date more than
I&K orders of +lipkart are handled via warehouses which help in 5uick and efficient
service.
( humble beginning from books, +lipkart now has a gamut of products ranging from7
6ell phones, laptops, computers, cameras, games, music, audio players, 3@Hs, healthcare
products, washing machines etc. etc. /till, +lipkart derives around %&K of its revenue
from selling books online. +lipkart is the -ndian market leader in selling books both
offline and online, it enjoys an online share of around I&K. 3he electronic items have a
large number of players like !aaptol, .etsbuy, -ndiapla1a, 3radus, -nfibeam, Yebhi etc.
3he electronic market share is distributed among them in different unknown proportions.
-ndia has around =).% crore internet users today where as the number of homes with
6able and /atellite >6L/? television is =&.% crore. 3he expected internet users will reach
a figure of )& crore by $&=G and 6L/ homes are expected to be =G crore by $&=G. 3hus
-ndia has a tremendous internet growth and with the customers getting accustomed to e0
commerce, the future of e0commerce sector is definitely rosy. (n approximated $% lac
people have transacted online this year, the number is all set to increase with time.
(lso to mention most of the +lipkart customers use internet from 6HsD.aptops to order
goods. 3he use of mobile internet is very less at the moment, but with the advent of smart
phones the use of mobile internet for e0commerce transactions will soar with time. -ndia
has I crore mobile net users at the moment, the number is expected to swell to $$.% crore
by $&=G.
%undin.:
-nitially funded by the 'ansals themselves with G .akhs>-!#?.
+lipkart has since then raised two rounds of funding from venture capital funds (ccel
-ndia >in $&&J? and 3iger 4lobal Management >up to the tune of B/M=& million? >in
$&=&?.
rivate e5uity firms 6arlyle and 4eneral (tlantic are in talks to jointly invest about
M=%& million to M$&& million in +lipkart, according to sources.
c3uisitions:
-4,47 1$R$D, a social book discovery tool. 3he stated goal was to give +lipkart a
social recommendation platform for buyers to make informed decisions based on
recommendations from people within their social network.
-4,,7 Mime/54, a digital content platform company.
-4,,7 Chakpak.com is a 'ollywood news site that offers updates, news, photos and
videos. +lipkart ac5uired the rights to 6hakpak"s digital catalogue which includes G&,&&&
filmographies, =&,&&& movies and close to %&,&&& ratings. +lipkart has categorically said
that it will not be involved with the original site and will not use the brand name.
-4,-7 #etsbuy.com is -ndiaHs second largest e0retailer in electronics. +lipkart has bought
the company for an estimated B/M $% million.
%lipkart6s Success Mantra
4reat customer service7 +lipkart users are more satisfied than that of their competitors.
4reat customer service has been its hallmark.
;asy to use website, hassle free payment system7 3he user interface is sleek and easy to
use.
6ash on deliveryD6ard on delivery mode of payment7 3his has been a major instrument in
+lipkart"s success. (lmost N&K of its sales happen through this mode. 6ash on delivery
created trust in the minds of -ndian customers who were always weary of making payments
online.
+ocused on user experience7 ;very other e0commerce site, tried to cram the maximum
of amount of information possible into every single page whereas +lipkart focused on
providing only the relevant info
+uture #oad Map
3hey aim at =& times growth and eyes at M ='illion sales by $&=%.
3hey will look at bigger investments in their supply chain and technology.
-nvestment will be made in large warehouses and increased automation of their
process, so that the product is not delayed.
3hey intend to enter in to various new categories and expand their current categories
as well.
;verything except for groceries and automobiles will be available on +lipkart in
future.
3o go further in the value chain, +lipkart is looking at associations with a larger
number of suppliers and partners, both nationally and internationally.
'hreats in 2uture:
3here are no major foreseeable threats in the future. 3he company has built a great brand
name, they just have to maintain and enhance the same. !eed to keep introducing more
products, adapting to the changing needs of the customer with time. 3he entry of
(ma1on.com in $&=$ in the -ndian e0commerce space has been cited as a big challenge to
+lipkart. ,owever +lipkart is a respected 'rand name in -ndia and should be able to
compete with (ma1on. (ma1on being a very big company can bring in serious
competition to +lipkart, since (ma1on can bear more losses in the beginning to gain
customer base. 'ut again -ndian market is growing at a rapid pace as access to internet
increases and people become more aware of e0commerce sites and start trusting the sameO
hence -ndian market is sufficiently big at0least for these two giants to co0exist beneficiall
dvertisements (sed in &e7spapers and Ma.a0ines:
!ewspaper advertising works on the fundamental of building trust and confidence with
the readers.
!ewspapers have the greatest impact because of the following reasons7
=. ;xperts say the greater the exposure of the advertisement, the longer is the period of its
impact among the readers. 3herefore experts feel if an advertisement stays in the memory
of a consumer for a longer time, chances are 5uite probable that he might opt for
purchasing or availing your services as and when re5uired. 3his counts for higher sales
and brand awareness.
$. ( newspaper reader is so involved in his reading that sometimes the content in the
advertisements creates an emotional impact on him. -t is this power of being able to
evoke an emotional response with the reader that goes in favor of newspaper advertising.
). -n other media, especially online media, people get perturbed by the distractions in the
form of pop0ups and other advertisement forms that keep flashing on and off the screen.
-n fact experts" points out that instead of having any favorable impact, these ads serve to
distract the readers. ,owever newspapers, point out experts, involves a focused reading
where there are no disturbing and unwanted flashes of advertisements. (s there is no
distance between the reader and the story it seems that the reader actually undergoes all
the emotions in the story himself, leading to increase in the trust factor. 3aking advantage
of this trust 5uotient, advertisers cash on newspapers to send their messages loud and
clear among the readers.
,ence, +lipkart has used advertisements in newspapers and maga1ines which are
colorful, brightO most of the images consist of kids, and have clear messages. ,ere are
some of the advertisements used by +lipkart in !ewspapers and Maga1ines.
"nline dvertisin.
3he number of internet users is on a rapid rise worldwide and is used by people of all age
and types. -nternet has become a major medium for communication, entertainment and is
in the process of replacing traditional entertainment, promo products, and informative
Medias. /ome businesses are finding that handing out a promo product such as pens,
business cards, and mugs are too costly and yield little results. .ikewise, traditional
marketing forms such as television, radio, newspaper, maga1ines, etc., are becoming a
thing of the past.
-nternet has also become a major and effective medium for advertising and it has be
predicted that the online advertising and marketing is soon going to replace the
advertising through traditional medias such as television, radio, newspaper and
maga1ines. - have picked around =& advantages of online advertising >not in that order?
when compared with the traditional offline advertising.
=? Aider 6overage 03he online advertising gives your ads a wider coverage and this
globally wider coverage helps in making your advertisements reach more audiences,
which may ultimately help you in getting better results through your online advertising
campaign.
$? 3argeted (udiences when compared with offline advertising, online advertising always
helps you to reach the targeted audience and this helps in making your campaign more
profitable and getting more relevant leads.
)? (ffordable 0(nother main advantage of online advertising or marketing is the much
affordable price when compared with the traditional advertising costs. Aith a much lesser
cost you can advertise on the net for a wider range of audience and geographical
locations.
G? ;asy to 3rack and Measure 6onversion 0
Measurability and easiness to track the conversion makes online advertising miles ahead
on the traditional advertising methods. ( lot of effective analytics tools are available to
measure online advertising campaigns which help in more improvisation of the ads.
%? /peed 0*nline advertising is much faster than offline advertising and you can start
sending out your ads to a wider audience, the moment you start your advertising
campaign.
N? -nformative 0-n online advertising, the advertiser is able to convey more details about
the advertisement to the audience and that too at relatively low cost. Most of the online
advertising campaigns are composed of a clickable link to a specific landing page, where
users get more information about the product mentioned in the ad.
F? +lexible ayment 0ayment flexibility is another added advantage of online
advertising and marketing. -n offline advertising you need to pay the full amount to the
advertising agency irrespective of the results. 'ut in online advertising there is the
flexibility of paying for only 5ualified leads, clicks or impressions.
I? 'etter #*- 0/ince online advertising is mainly focused on performance based
payment, you #*- is sure to be far better when compared with offline advertising.
J? ;asy (udience ;ngagement 0*nline advertisement makes is easy for the audience to
engage with your ads or products. (s an advertiser we would be able to get more
feedback from the audience and thereby improve the 5uality of our ads going forward.
=&? 'etter 'randing 0(ny form of advertising helps in improving the branding and online
advertising stands a notch high in improving the branding of your company, service or
product.
+lipkart being an online mega store advertises its products and the offers in different
internet sites, screenshots of which are being shown below
Su..estions:
+lipkart has successfully placed itself into the prospects mind making it the -ndia"s largest
online store with huge range of products. 'ut +lipkart still needs to work on their core
competence that is books and stationery items.
Aith the entry of (ma1on.com it will be a huge competitive market for +lipkart and
hence will have to position itself better, as we still see that huge percentage of females are
still unaware of +lipkart. 3hose female who purchase, has a very less fre5uency which
has remained unchanged. 3herefore they need to get aggressive at providing better
services which can be fulfilled by reducing the delivery time, selling second hand
products which will increase consumers" affordability much more and enhance
penetration into the market.
3hey can even have their retail stores which can give an access to consumers to feel and
analy1e the products, which will help them win the consumers faith.
rice will still be a factor as ama1on being a huge company will use its economies of
scale to remove their competitors from the marketO therefore they need to be more
competitive on that aspect. 'e very focused on consumers and build ama1ing experiences
for the customers.
Brijmohan Lall Munjal
-nstinctive from a young age, 'rijmohan .all made a rather unusual start in life. (round
the time when the freedom movement in -ndia was taking shape in the late =J$&s, he
walked into a newly opened Gurukul >-ndian heritage school? near his home in 2amalia
>now in akistan?. ,e was only six years old then.
3hus began an extraordinary tale of courage and perseverance. 'rijmohan began his
business story after partition in =JGF, when he and his brothers relocated to .udhiana.
3he family set up a company that provided poor people with basic transport >cycles?.
3hree decades later, as -ndia evolved, he added a second crucial chapter 0 which
visuali1ed affordable and technologically superior transport to millions of middle class
-ndians. 3he rest is history.
'uilding#elationships
Ahen 'rijmohan and his brothers started out, there was no concept of organi1ed dealer
networks. 6ompanies just produced, and most dealers functioned like traders. 'rijmohan
changed the rules of the business by trusting his gut instinctsO introducing business norms
that were ahead of their time, and by investing in strategic relationships.
'rijmohan built a series of bonds and networks with hundreds of family members,
vendors, dealers and employees. Much like the <apanese keiretsu system, these networks
are now the glue that holds the ,ero 4roup together.
P3hanks to the relationships that we have nurtured so passionately in the ,ero +amily, the
younger generations of some of our bicycle dealers have become dealers of ,ero ,onda.
3hese relationships have survived through generations 0 through bad times and good
timesHH the patriarch now reminiscences.
'esides bonding with his vendors and dealers, 'rijmohan has been personally responsible
for kindling a spirit of entrepreneurship amongst his employees, and today, G& of his
former employees are successful entrepreneurs.
Stayin.head
3hough not technically 5ualified in the conventional sense, few of his contemporaries
have understood the dynamics of technology better than 'rijmohan .all has. ,e could
always visuali1e the applicability of technology before others could. +or example, in the
=JI&s, when all two0wheeler companies in -ndia opted for two0stroke engine technology,
'rijmohan preferred a four0stoke engine 0 a technology that dramatically increased fuel
efficiency and reduced maintenance costs. 3his technology was one of the biggest
reasons for ,ero ,ondaHs stupendous success.
3ime and again, 'rijmohan managed to steal a march over his industry peers. +or
example, when ,onda Motors of <apan was looking for a collaborator in the =JI&s, the
,ero 4roup was not high up the pecking order initially as there were other more eligible
and established suitors.
Yet it didnHt take long for the astute <apanese to reali1e that the ,ero 4roup and ,onda
had much more in common than earlier perceivedO there a sharp focus on financial and
raw material management, and employee turnover was low. ,onda officials were also
ama1ed to find that the Munjals were already practicing P<ust0in0time0inventoryP at the
time ><-3?. -t turned out that 'rijmohan .allHs aspiration to provide cheap transportation
to -ndiaHs poor by default ensured lean and cost0effective operations. 3his in turn
increased vendor efficiency and led to near01ero inventories.
Corporate Pro2ile
,ero ,onda Motors .td. is the worldHs largest manufacturer of two C wheelers, based in
-ndia.
3he company is a joint venture between -ndiaHs ,ero 4roup and ,onda Motor 6ompany,
<apan that began in =JIG.
-n $&&=, the company achieved the coveted position of being the largest two0wheeler
manufacturing company in -ndia and the 8Aorld !o.=" two0wheeler company in terms of
unit volume sales in a calendar year by a single company. ,ero ,onda has retained that
coveted position till date.
3oday, every second motorcycle sold in the country is a ,ero ,onda bike. ;very )&
seconds, someone in -ndia buys ,ero ,ondaHs top0selling motorcycle C /plendor.
*ision
3he ,ero ,onda story began with a simple vision C the vision of a mobile and an
empowered -ndia, powered by ,ero ,onda. 3his vision was driven by ,ero ,onda"s
commitment to customer, 5uality and excellence, and while doing so, maintaining the
highest standards of ethics and societal responsibilities. ,ero ,onda believes that the
fastest way to turn that dream into a reality is by remaining focused on that vision.
Strate.y
,ero ,onda"s key strategy has been driven by innovation in every sphere of activity C
building a robust product portfolio across categories, exploring new markets,
aggressively expanding the network and continuing to invest in brand building activities.
Manu2acturin.
,ero ,onda bikes are manufactured across three globally benchmarked manufacturing
facilities. 3wo of these are based at 4urgaon and Dharuhera which are located in the state
of ,aryana in northern -ndia. 3he third and the latest manufacturing plant is based at
,aridwar, in the hill state of Bttrakhand.
'echnolo.y
-n the =JI&"s ,ero ,onda pioneered the introduction of fuel0efficient, environment
friendly four0stroke motorcycles in the country. 3oday, ,ero ,onda continues to be
technology pioneer. -t became the first company to launch the +uel -njection >+-?
technology in -ndian motorcycles, with the launch of the 4lamour +- in <une $&&N.
Products
,ero ,ondaHs product range includes variety of motorcycles that have set the industry
standards across all the market segments. 3he company also started manufacturing
scooter in $&&N. ,ero ,onda offers large no. of products and caters to wide variety of
re5uirements across all the segments.
Distribution
3he companyHs growth in the two wheeler market in -ndia is the result of an intrinsic
ability to increase reach in new geographies and growth markets. ,ero ,ondaHs extensive
sales and service network now spans close to G%&& customer touch points. 3hese
comprise a mix of authori1ed dealerships, /ervice L /pare arts outlets, and dealer0
appointed outlets across the country.
Brand
3he company has been continuously investing in brand building utili1ing not only the
new product launch and new campaign launch opportunities but also through innovative
marketing initiatives revolving around cricket, entertainment and ground0 level
activation.
,ero ,onda has been actively promoting various sports such as hockey, cricket and golf.
,ero ,onda was the title sponsor of the ,ero ,onda +-, ,ockey Aorld 6up that was
played in Delhi during +eb0March $&=&. ,ero ,onda also partners the 6ommonwealth
4ames Delhi $&=&.
-448+,4 Per2ormance
3otal unit sales of GN,&&,=)& two0wheelers, growth of $).N per cent
3otal net operating income of #s. =%IN&.%= 6rores, growth of $I.= per cent
!et profit after tax at #s. $$)=.I) 6rores, growth of FG.= per cent
+inal dividend of =%&&K or #s. )& per share on face value of each share of #s. $
;'-D3( margin for the year =F.G per cent
;/ of #s. ===.FF, growth of FG.= per cent
9$R" 9"&D:S M)SS)"&
,ero ,onda"s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the 5uality, performance and price
aspirations of its customers. (t the same time maintain the highest standards of ethics and
social responsibilities.
3his mission is what drives ,ero ,onda to new heights in excellence and helps the
organi1ation forge a uni5ue and mutually beneficial relationship with all its stake holders.
9$R" 9"&D:S M&D'$
,ero ,onda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world0class products with cutting
edge technology from ,onda Motor 6ompany, <apan. 3he teamwork and commitment
are manifested in the highest level of customer satisfaction, and this goes a long way
towards reinforcing its leadership status.
PR"M)&$&' 1RDS &D CC"#D$S
'" '9$ C9)RM&
7ards and ccolades
H.ifetime (chievement (wardH for 3ranslating ;xcellence in 6orporate 4overnance into
#eality by 3he -nstitute of 6ompany /ecretaries of -ndia
-ndian (utomotive ,all of ride by *verdrive
6!'6 3@=I 6ommendation of 'usiness .eadership displaying extraordinary 6orporate
.eadership and ;ntrepreneurial /pirit
adma 'hushan by 4overnment of -ndia
Doctor of .etters >,onoris 6ausa? by ,emwati !andan 'ahuguna 4arhwal Bniversity,
/rinagar 4arhwal
.ifetime (chievement (ward by ;3 (wards for 6orporate ;xcellence
.ife 3ime (chievement (ward for Management by (ll -ndia Management (ssociation
D. .itt. >,onoris 6ausa? by 'anaras ,indu Bniversity
.ifetime (chievement (ward by (mity 'usiness /chool
.ifetime (chievement (ward by ,3 ower <obs
;ntrepreneur of the Year (ward by 'usiness /tandard
4iants -nternational (ward to the 6hairman in the field of 'usiness L -ndustry
'usiness .eadership (ward by Madras Management (ssociation
;ntrepreneur of the Year (ward by ;rnst L Young
/ir <ehangir 4handy Medal for -ndustrial eace 0 by Q.#-, <amshedpur
'usiness .eader of the Year by 'usiness 'aron
Distinguished ;ntrepreneurship (ward by ,D 6hambers of 6ommerce L -ndustry
!ational (ward for outstanding contribution to the Development of -ndian /mall /cale
-ndustry >!/-6 (ward 0 resented by resident of -ndia?
'usinessman of the Year by 'usiness -ndia 4roup of ublications
,onorary Membership 0 -ndian -nstitution of -ndustrial ;ngineering (ward
Rahul Ba;a;
Chairman o2 Ba;a; !roup o2 Companies< Ba;a; uto #td
.
"b;ective
3he objective of selecting #ahul 'ajaj as our entrepreneur is to know about him in detail
and also gain some insight into the working of his company. (s every successful person
has some proven principles through which he has managed to enter the hall of fame, it
becomes apparent that we study those principles, mindset, techni5ues etc and try to
inculcate those in our life as well.
#ahul 'ajaj is one of the veteran industrialists who has got a rich business experience in
various industries and has chaired the managements of various companies in diverse
fields. ;ven at the age of F$ he actively participates in business activities which inspires
awe in every young entrepreneur of today"s world.
(part from being a business tycoon in automobile industry he has also received the
coveted Padma Bhushan award along with innumerable business awards from various
institutions. ( person of such a high profile and caliber definitely knows what he is doing
and therefore analy1ing and drawing conclusions about his activities is very much worth
our time.
*ur ultimate objective here is not just to be flabbergasted by the magnificence of his
lifetime achievements but learn some things which will aid us in reaching such great
heights
Bio.raphy
Rahul Ba;a; born =& <une =J)I is a prominent -ndian industrialist and member of the
-ndian arliament. ,e comes from the business house started by a #ajasthani Marwadi
businessman <amnalal 'ajaj. ,e is F$ years old now and has one brother, /hishir 'ajaj
and ) cousins, /hekhar, Madhur and !iraj together with whom he controls the 'ajaj
4roup of companies. (lso, he has two sons #ajiv L /anjiv and a daughter, /unaina
2ejriwal. 3he B/M =.)$ 'illion 'ajaj (uto is his flagship company. ,e resides in une,
-ndia.
Mr. 'ajaj is an ,onours 4raduate >'(? in ;conomics from Delhi Bniversity, Degree in
.aw >..'? from 'ombay Bniversity and a 'usiness 4raduate >M'(? from the ,arvard
'usiness /chool. ,e has studied at /t. /tephenHs 6ollege>Delhi?, 4overnment .aw
6ollege>Mumbai? and 6athedral and <ohn 6onnon /chool.
Corporate Port2olio
#ahul 'ajaj is the 6hairman of the 'ajaj 4roup, which ranks among the top =& business
houses in -ndia. 3he 'ajaj 4roup has diversified interests ranging from automobiles,
home appliances, lighting, iron and steel, insurance, travel and finance. #ahul 'ajaj is
one of -ndiaHs most distinguished business leaders and internationally respected for his
business acumen and entrepreneurial spirit.
Mr. #ahul 'ajaj presently serves as an ;xecutive 6hairman and ,ead of 'ajaj 4roup of
6ompanies of 'ajaj (uto .td. Mr. 'ajaj served as the 6hief ;xecutive *fficer of 'ajaj
(uto .td. since =JNI. ,e served as Managing Director of 'ajaj ,oldings L -nvestment
.imited until March )=, $&&%. ,e served as Deputy 4eneral Manager of 'ajaj 3empo
.imited. Mr. 'ajaj serves as 6hairman of the 'oard of 'ajaj +inserv .td., 'ajaj (llian1
.ife -nsurance 6ompany .td., and 'ajaj (llian1 4eneral -nsurance 6o. .td. ,e has been
the 6hairman and Director of 'ajaj (uto +inance .td. since <uly $N, =JF$. ,e has been
!on0;xecutive 6hairman and !on0;xecutive director of 'ajaj ,oldings L -nvestment
.imited since +ebruary $&, $&&I. Mr. 'ajaj serves as Director of 'ajaj +inserv .td.
Mr. 'ajaj served as !on0executive 6hairman of Maharashtra /cooters .td., until *ctober
=I, $&&N. ,e served as 6hairman and Director of Mukand .td. until <uly $&&F and served
as its Director until <uly $I, $&=&. ,e serves as a Member of ;xecutive 'oard at -ndian
/chool of 'usiness. ,e served as a Director of !ational (viation 6ompany of -ndia
.imited. ,e served as a Member of 4overning 'oard of -ndian /chool of 'usiness. ,e
serves as a Member of -nternational (dvisory 6ommittee of !Y/; ;uronext, -nc.
>+ormerly !ew York /tock ;xchange, -nc.?.
Mr. 'ajaj served as the resident of 6onfederation of -ndian -ndustry . ,e also served as
resident of /ociety of -ndian (utomobile Manufacturers >/-(M? and Mahratta 6hamber
of 6ommerce, -ndustry (nd (griculture >M66-(? and the 6hairman of the Development
6ouncil for (utomobiles and (llied -ndustries.
,e served as 6hairman of the 4overnment owned domestic carrier, -ndian (irlines from
=JIN to =JIJ. Mr. 'ajaj serves as 6o06hairman of the 'oard of 6ommonwealth 'usiness
6ouncil. ,e served as 6hairman of the -nternational 'usiness 6ouncil of the Aorld
;conomic +orum, 4eneva and serves as its Member.
Salary and Compensations
(!!B(. 6*M;!/(3-*!
/alary $%,=$=,&%%
3otal (nnual 6ompensation $%,=$=,&%%
/3*62 *3-*!/
(ll *ther 6ompensation )N,&&&,&&&
3*3(. 6*M;!/(3-*!
3otal (nnual 6ash 6ompensation $%,=$=,&%%
3otal /hort 3erm 6ompensation $%,=$=,&%%
*ther .ong 3erm 6ompensation )N,&&&,&&&
3otal 6alculated 6ompensation N=,=$=,&%%
.
Ratin. on the #ist o2 %orbes Billionaires
#ahul 'ajaj was ranked ==4
th
in the +orbes list of Aorld"s 'illionaires as of March $&=&
with a net worth of B/ M=.= 'illion dollars. ,is fortune has been inherited and is
exponentially increasing in the recent years. ,e is ranked --
nd
in -ndia"s richest people
according to +orbes maga1ine.
chievements
,e established factories at (kurdi and Aaluj. -n =JI&s 'ajaj (uto was top scooter
producer in -ndia and its 6hetak brand had a =&0year waiting period. #ahul 'ajaj became
a Member of arliament through the #ajya /abha. ,is company how0ever is being
handled very well in the safe hands of his son #ajeev.
3he recession and stock market collapse of $&&= hit the company hard and it was
predicted that the days of 'ajaj (uto were numbered. ,owever, 'ajaj (uto re0invented
itself, established a world0class factory in 6hakan, invested in #LD and came up with
'ajaj ulsar Motorcycle. 'ajaj ulsar is currently a leader in its segment.
Bnder his stewardship, the turnover of the 'ajaj (uto company has risen from #s.F$
million to #s.GN.=N billion.
,e was elected to the Bpper ,ouse of arliament >#ajya /abha? in <une $&&N. resident
of -ndia nominated Mr. 'ajaj as the 6hairman of the 'oard of 4overnors of the -ndian
-nstitute of 3echnology, 'ombay on =$th May, $&&).
-n =JF%, Mr. 'ajaj received the PMan of the YearP award from the !ational -nstitution of
Ruality (ssurance. ,e was selected as 'usiness -ndiaHs 'usinessman of the year =JI%. -n
=JII, he was felicitated for his achievements in a public function by the une Municipal
6orporation..
,e received the 'ombay Management (ssociation (ward for the most distinguished
services in the field of management in =JJ&. ,e was awarded +-; +oundation, the
#astrabhushan (ward in =JJN. .okmanya 3ilak /marak 3rust awarded Mr. 'ajaj the
.okmanya 3ilak (ward in $&&&.
,e was awarded the :Padma Bhushan: by the resident of -ndia in March $&&=. ,e was
awarded the <eevan /adhana 4aurav uraskar by the une Bniversity for $&&$ and he
was the first person to be inducted by the -6-6- 'ank and the leading automotive
maga1ine, *verdrive, in the -ndian (utomotive ,all of ride 0 $&&). Mr. 'ajaj received
both ;conomic 3imes and ;rnst L Young .ife 3ime (chievement (wards in $&&G.
Degree of Doctor of .etters
>,onoris 6ausa? was conferred on Mr. 'ajaj by the #ani Durgavati @ishwavidyalaya
>formerly <abalpur Bniversity? in March $&&%. ,e was also conferred the degree of
Doctor of (rts >,onoris 6ausa? by --3 #oorkee and the (lumni (chievement (ward by
the ,arvard 'usiness /chool, both in /eptember $&&%.
'he Business 'ycoon Speaks
'ajaj feels that the world has become a seamless place to live in and that liberali1ation of
the economy during =JJ=0J) was handled exceptionally well. 3he biggest problem
with the country is its apathy to creating wealth. #ahul 'ajaj feels that the bloated
structures and the unproductive systems need to be dismantled. 3he need of the hour
is efficient mechanism with free and fair competition.
3ips from the master for entrepreneurs
a. .isten effectively
b. 3hink like an entrepreneur
c. 6ross functionality
d. /mart work combined with hard work

Mr. 'ajaj also talks on the black money stacked in hidden accounts in foreign banks. ,e
says that it is very difficult to prosecute those -ndians who have hidden their black money
in foreign accounts. -t will take many years for the judgment and therefore he is of the
opinion that the disclosure of their names at present will not serve any purpose. -nstead,
he suggests that a new law be passed wherein their money must be taxed on higher rates
and if they abide by it then no 5uestions will be asked to them regarding their wealth.
3hey be given certain amount of time to bring their money back and even then if they fail
to do so then their names be disclosed to the public at large and they be punished to the
maximum extent.
conclusion
'usiness organi1ation is living, breathing entities which grow organically. (nd he also
believe that there is lot that org can learn from understanding nature. !ature is the best
designer and very often they have been inspired nature work. -n nature, there are no
fundamental tension between conservation change, *rder and freedom, organi1ed and
disorgani1ed. 6omplex city and simplicity co exist in nature, there is continues fight for
survival and yet there is harmony interdependence among all living organism
3he idea of flow is extremely for any business organi1ation and it part of their
organi1ation"s core value. if one believes in the idea of flow one always move on rather
than getting stuck and wasting time in making decision . -n most org manager keep
working in circle discussing and re0discussing everything from every possible angle. (nd
yet of the =& decision they make only I turn out to right. 3wo still go wrong. (n
organi1ation never has perfect info or complete consensus before leading a new initiative.
3here will always be some amount of conflict and a lot of certainty. 'ut the movement it
stops to resolve each issue and make everything certain, it moves towards stagnation.
;veryone in their organi1ation, irrespective of what level they work is encouraged to take
initiative and make decision.