Reliance Fuel Pumps: A Business Model Masterstroke

A typical Reliance fuel pump has only 1.5% market share by number of pumps, but 60% market share by volume of fuel sold. Unbelievable. Right? Let us delve deeper to understand. The market gap Let us take an 80 km radius (a.k.a. Trading area) as our unit of analysis here. This may not be accurate … Read more

Verticalization May Kill Google’s Golden Goose

Context Amazon is now already ahead of Google in Product searches (38% of shoppers now start with Amazon, 35 % start with Google). In fact, most of the google searches are category or vertical specific. Moreover, the searches all seem to have a hugely profitable vertical associated with them (e.g. hotel reservations, airline reservations, eating out, entertainment, or … Read more

There Are Still Only 2 Ways To Compete

Context In 1960s, BCG asserted that there was only one way to successfully compete: gain relative market share. This would result in lower costs than the competitors. In 1980s, Michael Porter pointed out that there is another way to compete: differentiation. But, do these 2 ways of competing still hold true today? Does strategy today need to … Read more

E-commerce in India: Succeeding due to Business Model, Failing Due to Strategy

A Business Model is a higher-order concept than Strategy. It answers 3 basis questions on How to: Create value, Deliver value, and Capture a part of that value. E-commerce has gown phenomenally fast owing to its disruptive Business Model: First Inventory-based and then the Marketplace-based. The online/mobile shopping model has become successful because it did … Read more