Competitiveness: Indian Players vs. MNCs
This is old data, but big picture will not be too different still. It is worth noticing that all the Indian companies (Except Tata) are not operating in free market space / truly competitive space. MNCs are performing better in profitability and are at par in size too.
Reasons:
1. Low investment in R&D due low risk appetite, high expectation in terms of pay back pd.
2. Under estimation of power of marketing or poor marketing skills.
3. Lack of valuing talent - most private Indian companies undervalue Indian talent, have incessant drive to extract more from asset or fears giving autonomy. Usually promoters belief in command-and-control model. This behavior drives away good talent.
4. Lack of customer focus i.e. giving respect to Indian customer and her needs. They are shit, give them shit mentality (try calling any Indian company's customer service)
Many Indian companies have been aberrations. I am not saying that you will not find companies who are doing well on one or all of these, but majority companies are based on product based business models and are driven by promoters. This becomes an issue when they try to scale up.
Also, profitability is driven by investments in R&D (which results in innovation and better quality) and high brand value (needs marketing), both of which are under valued by Indians.
In the current start up frenzy, lot of good talent and new business models are entering the game and hopefully, they will change this culture.
Reasons:
1. Low investment in R&D due low risk appetite, high expectation in terms of pay back pd.
2. Under estimation of power of marketing or poor marketing skills.
3. Lack of valuing talent - most private Indian companies undervalue Indian talent, have incessant drive to extract more from asset or fears giving autonomy. Usually promoters belief in command-and-control model. This behavior drives away good talent.
4. Lack of customer focus i.e. giving respect to Indian customer and her needs. They are shit, give them shit mentality (try calling any Indian company's customer service)
Many Indian companies have been aberrations. I am not saying that you will not find companies who are doing well on one or all of these, but majority companies are based on product based business models and are driven by promoters. This becomes an issue when they try to scale up.
Also, profitability is driven by investments in R&D (which results in innovation and better quality) and high brand value (needs marketing), both of which are under valued by Indians.
In the current start up frenzy, lot of good talent and new business models are entering the game and hopefully, they will change this culture.
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