Demise of "Toys R Us"

"Toys R Us" is an American company, which was one of the world's leading retailers of toys, children clothing and baby products. It was founded in 1948 by Charles Lazarus which was then called "Bargain Town" and the name " Toys R Us" made its debut in 1957. It is a stylized version of the phrase " toys are us". 

             Over the next few decades after the company was started, it was dominant in toy sales market. By 1978, they were able to make profits of approximately $ 36 million that year. They were also expanding into international markets. 

             But during the late 90's they started experiencing competition from other big retailers like Walmart and a serious loss in court to Federal Trade Commission. In 2000's Toys R Us partnered with Amazon in a 10 year contract,to become the exclusive seller of toys and baby products on Amazon. But the company was completely reliant on Amazon for online sales and ignored the idea of building their own e-commerce business. Amazon also branched out and started working with competitors, which further hurt its market share and online sales.

              Rising competition from internal retail giants such as Amazon and massive mounting debt, eventually forced Toy R Us to file for bankruptcy in 2017. The company ended up selling or liquidating and closing most of its retail stores in Asia and Europe in 2018. The last 2 stores of business in New Jersey and Texas closed in 2021.

            In conclusion, Toys R Us failed because it didn't change. Instead they competed on price alone , relied on Amazon , had poor customer experience and focused on short-term.

Article by

Jacquiline P Benny 

Xerox 's downfall

Xerox was established in 1906 in Rochester, New york by chester carlson. At first the company was known as holaid company. Xerox was pioneer in photocopier Industry, dominating the world market with its innovative produts and services. Chester Carlson's invention of elctorphotography, which later became known as xerography revolutionised the way documents were duplicated and laid the groundwork for Xerox's success in the photocopier industry.Xerox's Palo Alto Research Center (PARC) played a crucial role in developing many of the key innovations that later became integral to personal computers, including the graphical user interface (GUI) and mouse. Instead of using these innovations they allowed other companies, particularly apple to adopt and refine this concept. They doesn't recognized the potential of personal computer and focused on to innovative its photocopy machine. With the increasing demand for personal computer the need for copy and printing systems decreased.  Xerox failure to capitalize the personal computer innovation made negative impact on their growth. As PCs gained popularity and became integral to businesses and households, Xerox's lack of involvement in this sector meant it lost market share to companies that embraced pc revolution. The company's focus on traditional photocopiers limited its ability to adapt to the changing technological landscape and keep up with market trends.Despite having a lot of technical knowledge, Xerox was unable to adapt to the changes brought about by the twenty-first century. The once-innovative business became stagnant 

VOLKSWAGEN Emissions Cheating Scandal

Volkswagen is a German Automotive Manufacturer headquartered in Wolfsburg, Germany. Founded by German Labour Front in 1937. Its name derived from the German language terms Volk and Wagen, translating to "People's Car" when combined.

Volkswagen Emissions scandal is an example for corporate governance failure.  Management of Volkswagen failed to fulfill their legal and ethical responsibilities towards the company and its stakeholders, employees, customers and the wider community.

It was a huge scandal. It all started back in 2014 when scientist is the International Council on clean transportation discoverd that several Volkswagen engines performed differently during emission testing than they did on the road. At the time Volkswagen really pushing and alternative to hybrid vehicles that they clean diesel Technology. 

Clean diesel which is kind of and oxymoron sins diesel fuels inherently burn sootier than regular gasoline engines. But diesel emits more nitrous oxide and particular matter both of which are very bad. Volkswagen claimed that they developed a nitrous oxide trap that help engines get good gas mileage. International Council of clean transportation scientists discovered that in Volkswagen diesel vehicles exceeded nitrous oxide level on the road test. It exceeded oxide emission standard level by up to 40 Times. In May 2004 the California Air resources board and the EPA opened an investigation into Volkswagen. the EPA decided several of the company's diesel models would not be certified for American sales in 2016. And that was the straw that finally broke Vin Diesel's gate. Volkswagen admitted to having knowingly installed a quote "sophisticated software algorithm" that could sense test scenarios by monitoring speed, engine operation, air pressure, and the position of the steering wheel. Between 2009 and 2015, the software was installed. in about 11 million vehicles worldwide split between VW and two of its subsidiaries, Audi and Porsche. Now, Volkswagen's stockholders were about to pay the price. Volkswagen CEO, Martin Winterkorn, was quickly forced to resign and eventually charged in the United States with fraud and conspiracy. In April of 2016, the company announced plans. to spend $18 billion dollars on repairing the affected cars. Nine months later, Volkswagen pled guilty to criminal charges brought by US Attorney General Loretta Lynch, and was fined $4.2 billion dollars. To date, Volkswagen has paid around $35 billion dollars total in fines, penalties, financial statements, and buyback costs. And while it's difficult to calculate the total effect on stock prices, the penalties are over, either. In September of last year, German prosecutors announced charges against eight more employees. Winterkorn's trial hasn't even begun yet. And a couple of months ago, Volkswagen lost a ruling in court that clears the way for them to be sued by the State of Ohio. Volkswagen admitted that they had been basically treating EPA regulations as a suggestion to be ignored. in the scandal's first two months, the company lost 46% of its shareholder value for about $42.5 billion dollars. There was also the damage done to dealers. Volkswagen paid its US dealers $1.2 billion to compensate them for losses.But again, the total impact can't really be calculated. And then there's the 30,000 jobs that Volkswagen eliminated in the wake of the scandal. 

The Cheating scandal was affected the people's trust towards them and also faced a huge loss. 

The company has some social responsibility towards the society. The Volkswagen failed to fulfill the ethical rules and it became a massive issue for them.  

DISSOLUTION OF Doc Talk

DocTalk is an application that stores medical reports and prescriptions.It helps patients to communicate with their doctors online. It is also known as Pulse India and is a private company. This app was very useful during the corona period. It was founded by Akshat Goenka and Vamsee Kamakura with the legal name Doc Talk Solutions Inc. in August 2016. It works on the subscription model. It charges a subscription fee from patients. It pays starting fee to doctors to join with it and guide the patients. The main marketing strategies are social media advertisements, visual marketing, advertisement through the doctors and targeting patients. There were certain challenges faced in this kind of app like communication gap between doctor and patient, service continuity, gaining patient trust, trustable staff members with a high patience level. The major reason that caused the shut down was, it's  inability to pivot which meant it did not have a plan B in case it's initial business model did not succeed. The planned transition into Electronic Medical Record (EMR) business from existing business model didn't yield the acceration needed.To conclude this can be a lesson for all of us planning for a start up to have an alternative business route.

                           Article by

                           Deeya A Snehal 

satyam computers corporate failure

Satyam computers was founded by Ramalinga raju.Satyam was one of the most promising IT companies in india.

The company presented fake accounts and misled market by lying about the financial health.

Satyam's founder Ramalinga Raju confessed on Jan 2009.As per his confession they manipulated company's account for 7 years.They inflated company's profit and revenue on paper this led to increase its share price.

The balance sheet figures was mostly fictitious.They paid 186.91 cr on fictitious interest income from bon existent fixed deposit.He used the amount to buy thousand acres of land in andhra.

The 14000 cr worth satyam scam was one of the biggest scam in the history of India.

Tech Mahindra take over satyam with indian government's intervention many young workers saved from unemployment

 On 9th April 2015 a special CBI court sentenced Raju to prison for 7 years.

FAILURE OF TATA NANO

Tata Nano is the cheapest car in the world was introduced on january 10, 2008. The very first version of Nano costed ₹1,00,000. The length of the car was 3.1metre, width 1.5 metre and height 1.6 metre. The milege of the car was also impressive 23.6 kilometre. Really the car was affordable to the middle class people. The tata Nano had drawn over fullpaid bookings amounting to nearly ₹2500 crores. Sales of Tato Nano during the introduced years is as follows:

REASONS FOR FAILURE

1)  The price of raw materials and employees wages also increased as a  result  the price of car increased to 2 to 2.5 lakhs.

2) Nano didn't provide AC, airbags and there was only one wiper.

3) It was failed on providing safety to customers.

4) Price of the car was not suitable as compared to competitors which provided more feautures than Nano.

5) Some of the models reported  fire while running the car.

 To conclude Tato Nano was affordable to the middle class people, but it failed to provide more feautures with the rise in price of the car in the subsequent years.

THANKYOU

SURYADAS K.S

TOYOTA'S RECALL CRISIS

Toyota motor corporation is a japaneese automobile manufacturer headquarters in Japan .It is the world's first Automobile manufacturer to produce more than 10 millions vehicles per year.

               In 2009 Toyota has recalled 8 millions vehicles in U.S . The recall is done because of 2 mechanical safety defects which cause unintended acceleration. Through the unintended acceleration there may occur accidents, injuries etc. The company are paying the compensation for this also ,so they are losing their money and value in this.The recall effect Toyota's reputation for reliability.NHTSA  identified the defect first and the agency push Toyota to conduct recalls.

   

Then they made a solution for this that

Rigorous testing and quality control can prevent design flaws and proper installation of floor mat and also quality checking on a regular basis.

The downfall of KODAK

Kodak was once a big name in the camera industry, dominating photography market all over the world. When we take  old photos of the 1970 's, it would have  clicked with a Kodak camera on a film and paper. Despite one and only favourite company in the photographic industry around the world,  this gaint company got Bankrupt in 2012. What went wrong with kodak? Why did the world's leading imaging company fell? So, here Iam discussing the tale of kodak that doesnt have a happy ending.

Kodak was an American company established by George Eastman and Henry A Strong in 1892. For most of the 20th century, kodak was the world's leading manufacturer of analog photography . By 1968, Kodak had almost 80% of global photography market share. The company used a strategy  called the razer and blades to make profit. It means, it used to sell the razor at a very low price and the blades to use the razor at higher price. Kodak was able to grab tremendous profit from this business model. Not only that, it introduced a campaign called kodak moments which refered to an best moment in a persons life. Through this campaign, kodak was able to create an emotional attachment with the consumers. This campaign also reaped revenue for the company. 

Everything was going well until the arrival of new technology, more specifically the digital camera. The thing is that,the first digital camera was invented by a person  named Steve Sasson who was an electrical engineer at Kodak. He introduced the idea of digital camera to his high official at Kodak. but the officials told Steve to keep his idea to himself and not to tell anyone. The higher officials said it because, they are making most of their profit from films and paper used in photography. If digital camera comes, it  would ultimately make the film and paper unnecessary. They ignored the digital camera technology to keep the profit intact. This was the first business blunder did by kodak.Though kodak let the idea of digital camera pass through it hands, Fujifilm a Japanese imaging company adopted the technology and implemented it on a large scale by realising  the potential of what digital camera are capable of. Other camera manufacturers like Sony, Canon, Nikon and others also followed the same path of fujifilm and started to invest in digital camera technology.

In 1981 Sony came up with its first digital camera prototype called mavika. By seeing that, Kodak become little concerned about the technology disruption in the photographic industry by digital camera.Kodak believed that, the consumers in USA will not favour any japanese company like fujifilm and canon over kodak. But the thing is that, the companies had already penetrated into the market. Kodak also made made some bad investments.That is, In 1988 Kodak invested about 5.1 billion dollars in Sterling drugs by hoping that the chemical business would help them in manufacturing paper in photography . But later on kodak realised that, the drugs that Sterling was dealing with had less use in photography. Due to less significance, kodak sell it out with half the purchase price. What they did was,  instead of investing money on bringing new technology into the company, Kodak wasted its time and money on not useful things. But Kodak had a chance to get back on the right track in 1989 during the time of chosing the next CEO of the  company by the board of directors . They had to either choose Phil samper who was a Digital Photography enthusiast or kay whitmore who was a part of traditional mindset. The bod recruited kay whitmore. Whitmore stayed close to kodak core business in film and photography chemicals. It was the last nail in the coffin for kodak. Buy 2000 Kodak understood that it had to stop what it was doing and to adopt new technology. But it was too late by then, other big gaint like Fujifilm, Sony and Nikon already in the market with their exceptional popularity among consumers. In 2004, Kodak officially stop producing  traditional film cameras and put more focus on digital camera in 2005. By 2009,the global camera market share was led by Canon and kodak was way behind Sony, nikon, Samsung and others. In 2012,Kodak faced bankruptcy which forced them to get out of the camera business. 

Ameena s

FAILURE OF BLACKBERRY

 Blackberry was founded in 1984. Blackberry is a communication device that was developed in the year 1999 by Research in Motion (RIM) company. Their security features, iconic QWERTY keyboards and email systems made blackberry phones a popular choice back in time. Blackberry phones were the king of smartphones. They made history by selling more than 5 crore units in a single year. They controlled 43% of the smartphone market in the US and 20% of the global market.

                           RIM company was developed a wireless radio modem with the available technology.  Thereafter, RIM company collaborated with other companies in software development and wireless email system. They did a commendable job in all of these. RIM, thus evolved into a high profit company. In 1999, they changed their name from RIM to Blackberry. By 2000, they were able to generate mobile phones independently. The model released was Blackberry 957.  

                            They were able to bring updates quickly and this gained the popularity and liking of consumers especially the businessmen. Blackberry phones brought rapid changes in their features. They introduced color display, camera and QWERTY keyboard.  It aided in sending quick emails. But in 2007, Steve Jobs conducted an Apple event and he mocked that blackberry phones as baby software and he also  criticized indirectly. Then the I-phone launches and their update features, initially  all these didn't affected the market of blackberry. Because people were reluctant to shift complete touch phone with no button and also I-phone was expensive.  

                             With the introduction of Android phones in 2008, everything turned upside down. The competition was boosted up. By 2010, the market of blackberry began to get affected. It was nowhere near to the marketing strategies of Apple. Their market share fell by 5% in 2012 might be because of their ego, blackberry was reluctant to change their QWERTY keyboard. But when the company began to witness down fall in 2012, they were ready to launch touch phones. But they released their first touchphone only in 2013. They were very late in bringing such changes. By the time they brought this change, the consumers world was changed into Android or I-phones.

                         In 2016, they decided to stop making it's own phones, after year of failures. The name  blackberry itself started to disappear. People don't need their touchphone anymore. In January 2022, company announced that they will not be providing new updates in the software and old phones also  will not be having new updates in the software. The production of the smartphone were stopped even before that. So it is clear that company is almost dead. The company is still alive but they are wiped out from the smartphone area. They still run their company through other businesses.

                          In conclusion, it's competitive advantage lies in it's focus on security, it's expertise in mobile technology and software development. The introduction of the Apple I-phone, which blackberry didn't take seriously caused a loss of market share and also excessive focus on enterprise over consumer taste and preference. The main reasons are : They ignored the trend, lack of  innovation, incapability to judge, lack of consumer insight and poor design. 

AISWARYA K               

Corporate Failure : PepperTap

"Priorities your Business models over customer acquisition and make sure its sustainable"

Pepper Tap

It is an online grocery delivery app founded by two IIM graduates Milind Sharma and Navneet Singh in Gurugar Haryana in 2014 with a mission of "revolutionize grocery shopping "

PepperTap entered the online grocery business without sufficient preparation.It gained huge markets in various cities aim to be the fastest on-demand grocery delivery services in India.

 It is failed to acknowledge the need for deep pockets, capital management,competitive price and inventory management. The cost that the company had to bear were high compared to the profit it made.

Some reasons -How PepperTap shutdown?

1  Quick expansion in cities and no infrastructure.

2  Didn't stand up to their promise of quick delivery

3 Capital Management and heavy discounts

    They couldn't manage the capital they had, they focus on the offers and discounts rather than sales.

4 No inventory

        Didn't have necessary items in their catalogue.

5 Lack of technical knowledge of customers

    2015 was the time were the maximum part of India was not even captured by the internet plan.

In April 2016, they had to shut down. PepperTap's parent company was Nuvo Logistics.

After PepperTap shut in 2016, its founders worked on Nuvo Logistics. It was later sold to Shadowfax in 2017.

Thankyou

Aswathy KB 

Fading Wings: PAN AM's Quiet Descent

           
    Imagine being the founding member of the International Air Transport Association (IATA), enjoying a near monopoly on international routes, the unofficial national carrier of the United States; that was Pan Am. Pan American World Airways founded in 1927 by two U.S Army Majors was the most famous principal and largest international air carrier. They were the unofficial overseas flag carrier of the United States for the most part of the 20th century. Once their slogan was "Live today, Tomorrow will cost more!". They were at the top of their field as the sky is not their limit. But now a few people know the name Pan Am. Now it's just one of the defunct companies that are being diminished from the minds of the public. Only bits and pieces of this "Conglomerate" exists today. The descent is due to a lot of internal and external factors, the Industry.

1. Financial Troubles

All companies experience tightness in their financials. But in this case, they expanded their fleet at a rate no one would imagine. And that made their pockets a little slim. The problem was time they expanded. Many other airlines came in for their own pound of customers and they were ready to sacrifice a little bit of profit for gaining (in this scenario stealing from Pan Am)customers. The expansion of fleets and routes set back a fortune and that put them in a tight spot making them not able to reduce the price. That only strained their financial resources.

2. Rising Debt

       They did accomplish a great expansion in fleet and route, but the question is at what cost? They alone couldn't handle such a large change. So they took some financial help from the available sources. Actually can't blame them, if the other emerging airlines haven't been so generous Pan Am could pull through out of that debt. This large debt took their ability to be financially stable like before.

3. Oil Price Shocks

      The infamous Oil Crisis in 1970 was a significant turning point in global energy dynamics, influencing policies, economies, and geopolitics for years to come. This shook Pan Am badly because their planes were craving the costly jet fuel. Blaming OAPEC (Organization of Arab Petroleum Exporting Countries) and their response to the political development in the Middle East was making no good. The overly-priced jet fuel made their financials thinner.

4. Terrorist Attacks

There was a terrorist bombing of Pan Am Flight 103 when it was over Lockerbie, Scotland in 1988. Already their financials were a mess and their goodwill was getting out of hand. And now this, being able to be like old times was just a normal daydream. For Pan Am the old saying is true; "When it Rains, it Pours". They wanted to fly but they were in deep water.

5. Deregulation of the Airline Industry

The policy of reduced cost and increased competition was due to the deregulation of the airline industry in the United States in the late 1970s and early 1980s. They were forced to jump from the frying pan into the fire. Crumbling down made them fight back, but they were of no use. While other airlines exploited the freedom, Pan Am was trying to hold what was left of their loyalty.

6. Failure to Adapt

Innovative competitors were taking their chance to adapt and be creative when Pan Am was just in denial. They struggled to adapt to changing market dynamics and customer preferences. They were pretty slow on that matter. Updating their services, implementing new technologies, and fleet modernization were not included in their agenda. It was kind of a loophole to overtake the near monopoly of Pan Am.

7. Sale of Assets

The airline was having a tough time and they couldn't handle the financial pressure and business stress. So they started to sell their valuable assets including their prized routes and the iconic Pan Am building in NewYork city. This desperate act made their value go downhill and revenue-generating capabilities to ashes. Delta Airlines saw the opportunity and acquired all the Pan Am's proud routes and shuttle service in a blink of an eye. They were not realizing they were digging their own graves. MetLife was more than happy in acquiring 'The Pan Am Tower' situated in New York. It kind of steals the public's attention because of its unique layout and center position. Johnson Control bid the most for the PAWS(Pan Am World Services).

8. Bankruptcy and Liquidations

After all this Pan Am doesn't had a snowball's chance in hell to be productive. They tried their best to secure their investments and restructure their operations, but they had to file for bankruptcy in 1991. Gradually their assets were seized and auctioned. Guilford Transportation Industries bought the company's name and imagery in 199. They changed the name to 'Pan Am Systems ' and adopted the globular logo.

All the above reasons such as financial challenges, external shocks, and other deregulation issues gradually made the deathbed of Pan American World Airways, putting an end to the era of the promising and prominent airline.

By

Rolwin Biju C

FALL OF GENERAL MOTORS IN INDIA

GM was founded on September 16,1908. They have outlets in world. After GM came to Indian market and suddenly quit from india due to low innovative technology and sales, poor business plan. GM's Chevrolet entered into India middle class sector easily they couldn't make much customer base, later their new models brands failed to strength in indian market.Innovation is a key factor for a company to complete in a challenging business world. The main reason for company fail in india is because of low innovative plans. The company don't give much importance to customers buying perspective mind. The fail to satisfy the needs of customers with the products they generated. The GM face  heavy business challenging of other Company and competite against them without innovative technology. The company in inda don't gave much importance to the risk associated with ideas of other organization business strategy. They fail to apdate in india market. It affect the GM financially very well. They decided to exit from indian market, many employees lost their jobs and sold their plant to others organizations too. The  best product sold through best strategy network.Because of all these reasons GM quit from india by the end of 2017. Companies need to understand the requirements of Indian customers and be a good decision makers.

Sreelakshmi R Menon 

Café Coffee Day: Corporate Failure

CAFÉ COFFEE DAY: CORPORATE FAILURE 

Cafe Coffee Day is a multinational coffee House sale that was headquarter in Bangalore. It was founded by VG Siddhartha. It had almost 550 outlets as of June 2021 . It had the offered to provide with customers a free space where are the customers could have a cup of coffee as well as enjoy an hour of internet freely. Compared to all other competitors of Cafe Coffee Day like Starbucks or any other brands, they were very cheap and the offered the internet free for an hour They had put forward the idea that "A lot can happen over coffee".

           Cafe coffee Day was a very debt centric company and it started with a depth of 1.5 crore to start its first outlet. It was a very depth oriented form and as of 2019 it had debt of 6547 cross and 1150 crore initial public offer. This firm did bring a very good amount of revenue ,that is rupees 4262 cross revenue as on March 2019 but even with all the revenue ,they only earned the profit of 143 cross and that was not sufficient to fill out the depth that they have taken for operating their business. It was a difficult road,but it when even down hill when the income tax raid happened and it was revealed that around 650 crores of accountant money . It led to the sea siezure of the shares of Cafe Coffee Day. To get over the issue of unmet debts,they also had other another subsidiary company Mindtree,which they try to sell but that idea was blocked by the Icome Tax department as they had not repaid the amount of tax. They even try to sell shares to Larsen and Toubro to fill out there 3200 crore debt but that idea also then go much forward. They also tried selling the other subsidiary that they are that is Tanglin Developments that were involved in selling tech parks , IT parks etc but that too failed .They even reached out to popular brand like coca cola for the sale of the shares but that also didn't work out.

          Also to add to the pressure, the CCD auditors said that they had not auditted 40 of the subsidies of CCD. The news spread to the Board of Directors and also the lenders. The lenders now refused to lend money to CCD. The shareholders insisted that the company buyback their shares and give them them amount that the shares were to pay. CCD face a lot of issues to fund for their activities as well as even to liquididate,as liquidation doesn't happen overnight and they were in need for a lot of money. This eventually lead to the suicide of their founder V G Sidhartha. And there after the prices of the shares of CCD when down drastically by 66.5%.

Niranjan 

THE FAILURE OF KINGFISHER AIRLINES

                                                

Disclaimer: this blog was written for educational purpose, the resource of the data in this blog was online journals.   

Kingfisher Airlines was India's one of the most highly profiled Airlines which was owned by biggest liquor tycoon of India. It was established in the year 2003; which is based in Bangalore. The parent company of kingfisher airlines was united breweries group. the air line started its commercial operations in 2005. the owner of kingfisher airlines (KFA) was Vijay Mallya and Sanjay Aggrawall was the CEO.

It was the first Indian airline to have (IFE) Inflight entertainment system on every seat even on domestic flights. The kingfisher airlines have a 360 degree promotion strategies in place. they reach out to its customers through all media of communication such as T.V, radio, newspaper, magazines etc...
kingfisher airlines achieved success by gaining customer satisfaction through offering grate, luxurious, and comfortable flying experience. according to the data shown in Wikipedia kingfisher airlines have a  revenue of 25,982.78 crore in 2012 and a net income of 8,765.9 crore in 2012. until December 2011, KFA was holding 2nd largest share in India's domestic air travel  market. after this time period it started to face extremal financial crisis. according to the annual report of KFA 2011-12 ; it shows reasonable doubts over the companies existence. it shows a loss around 690 crore were accumulated by the company. in order to keep the loss making business functioning, Vijay Mallya resorted to continuously borrowing money from banks. by 2012 KFA was declared as a NPA by SBI. At this point it even had failed to pay its employees which led to its pilots leaving it for better opportunities.
one of the important cause of the failure was the improper management; including poor financial planning, lack of focus on core operations. Vijay Mallya focused on luxuriousness rather than economic class.  at that time KFA merged with air decan and started Kingfisher red. it was a business strategic plan but it caused confusion in customers mind and it degraded the brand status and company lost it premium value. another scandal on the company kingfisher airlines was it held the service tax of passengers, PF, income tax of employees, but did not submitted to the PF or IT  authorities. 

after happening of all this events the company was bankrupted and (DGCA) Directorate General of Civil Aviation suspended the flying license of kingfisher airlines and ceased its operations on 20 th October 2012.

Despite the failure of king fisher of KFA , mallya remained as wealthy man. in 2016 a consortium of Indian banks declared mallya as a willful defaulter, alleging that he had diverted funds from kingfisher airlines to other companies in the UK.

The failure of Tata Docomo

Why did TATA Docomo fail? 

    Tata Docomo was a joint venture between Tata teleservices and a Japanese telecom company called NTT Docomo. Tata Docomo came into existence in 2008 and it has 2G and 3G services in India. The company provided several services for its customers and has received many business awards for its telecom services. But some serious factors affected its performance and led to the failure of Tata Docomo. In this study, the various reasons for the failure of the company are discussed.

Reasons for the failure of Tata Docomo

1.Competition from other telecom market players

Tata Docomo faced intense         competition from other telecom providers like Vodafone and Airtel, who had better infrastructure and more attractive services. It was difficult for the company to retain its customers and it failed to attract new customers.

2.Poor financial performance

The company failed to meet its standards and incurred huge losses. The competitors' low price offerings also reduced the margins for Tata Docomo.

3.Issues with partnership 

Because of the low market share and revenue, NTT decided to exit from the venture and it significantly affected the business.

4.Lack of technological innovations  

The company failed to upgrade itself from 3G to 4G and it also failed to upgrade its network coverage. So the customers switched to other service providers who provided more attractive offers and network coverage. So, the inability to adapt itself to the changing technologies caused customer dissatisfaction.

5.Cancellation of license

Three licenses of Tata teleservices were canceled by the supreme court and the court fined Tata teleservices for benefiting from the 2G telecom spectrum scam. 

These are the main reasons for the failure of Tata Docomo. 

             

Now all the Tata Docomo customers are merged with Airtel network, and the company has been taken over by Bharti Airtel.

-  ANJU PAULSON 

Cracking the Case: The Shocking Failures That Led to Yahoo's Ultimate Demise

 

"Faliure is only the end if you decide to stop"

Jerry Yang and David Filo Established " Yahoo "  in January 1994. As most of you are aware, Yahoo was once a powerful online Titan. How such a large internet company struggled to stay up with rivals in the technological sector and suffered a sharp downturn in the early 2000s is still a mystery. Below are a few crucial elements that contibuted to Yahoo experiencing a corporate failure.

1. The corporation was dealing with a number of internal problems and a frequently shifting top management . which opened the door for lack of concentration and inferior tatics.

2. Yahoo failed to develop and iprove their services since their technologies were outdated and inefficient.

3. Yahoo was unable to recognize global trends like Social networking an other mobile technology.

4. Due to frequent data breaches, customers began to lose faith in Yahoo.

5. When Google an Miscrosoft entered the market, there was intense competition for Yahoo, which forced it to compete for customers and advertisers.

 

6. Users opted for other customer-friendly interfaces because yahoo's was too much complex and unfriendly.

Verizon Communications purchased Yahoo's primary internet divison in 2016 for a very small fraction of what it was actually worth. this signaled yahoo's collapse and exposed it as a corporate failure.

Thankyou

- Ujwal Unnikrishnan

Punjab National Bank: LoU the key to the unfare

Punjab National Bank was started their operation on April 12 1895 in Lahore. PNB was one of the most largest public sector back in India .Nirav  Modi is the director of Punjab National Bank. In  2018 February we all are witnessed a big scam that happened in the PNB around 11400 crore transacted  through unauthorised and fraudulent manner.

           PNB scam is a case of financial fraud done by Nirav Modi with the assistance of senior PNB officials colluded with the bank by obtaining LoUs without submitting any securities. The impact of the scam is very huge. In February 14 the scam was determined after further investigation as its Mumbai's Brady branch. After detailed investigation found around of 100 LoUS (letter of Undertaken) issued without any collateral security. Later PNB became victim of the fraud and faced the problem amounting around 11400 crores.

          Punjab National Bank scam affected adversely on all  banking sector industry. Foreign investors lost their confidence and trust in the public sector banks due to this. The scam was occurred due to the poor management of bank and failure in  auditing. Auditors fail to detect any frauds that took place in PNB. After this the Government of India took many policies to  overcome such frauds that happening in the banking sector.

Article by

Tisha Shaji 

PLIGHT OF E PHARMACIES IN INDIA

INTRODUCTION

E Pharmacy sector have proliferated steadily in last few years, attracting significant attention and investments. During the pandemic period, E Pharmacies pegged at around $ 2.7 billion in 2021. The outbreak of Covid-19 elevated the performance of online pharmacy websites. The Indian online pharmacy sector was projected to grow at 63 percent annually from 2020 to 2025. Private equity and venture capitalists had invested more than $ 2.5 billion in online pharmacies.

   But contrary to the expectations, the consolidated losses of E pharmacies grew further and further. PharmEasy, the leader in this sector faced a loss of 4043.1 crores in FY22. It also withdrew its initial public offer draft papers in August 2022 almost an year after filing it.

REASONS FOR POOR PERFORMANCE OF E PHARMACIES

1)REGULATORY CHALLENGES:-

Most of the E Pharmacies in India were operating without licenses. They engaged in immeasurable unethical practices like selling medicines without doctor's prescription and selling of fake medicines. The drug abuse cases also shoot up during the span of last 5 years. Upon this allegations, Government of India strengthened the surveillance on online pharmacies.

> E Pharmacies are required compulsorily to take license to operate from Central Drugs Standard Control Organisation. (CDSCO)

>Online Pharmacies have to maintain detailed records of all transactions associated with purchase and sale of medicines.

>In september 2018, Delhi high court banned the sale of medicines via online. But later, this ban was revoked in December that year.

>In December 2019, Madras high court also imposed an interim ban upon online Pharmacies.

>In February this year, Drugs Controller General of India issued show cause notice to 20 E Pharmacy platforms for alleged contravention of laws.

2)INCREASED COMPETITION :-

As the sector was enjoying huge amount of profits along with a mountain of predicted profit, corporate giants like Reliance group and Tata group smelled the growth opportunity and entered into competition. While Reliance acquired major stakes in Netmeds, Tata invested their capital in 1mg. E commerce giants like Amazon and flipkart have their own pharmacy sections.

Howe'er, these arrivals had a negative impact on the profits of E pharmacy leaders during the period.

3)Retail Rivalry :-

The All India organisation of chemists and Druggists purported that E Pharmacies were burning capital to kill competition. As the margin given to offline stores by the National Pharmaceutical Authority is 10% for wholesalers and 20% to relailers, they are unable to compete with 25 % to 40% discounts offered by E Pharmacies. Because of this, there are huge amount of rivalry among the traditional traders of medicines all over the country. This is having a negative influence upon E Pharmacy sector.

CONCLUSION

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Accountability, transparency, fairness and responsibility are the four pillars of corporate social responsibility. By abiding corporate governance norms and conditions, E pharmacy sector in India can grow bigger and stronger in the future.

 According to Vijay Chawla- CEO of KPMG,

"The industry is growing nicely and eventually it will become profitable. E Pharmacies in India will see a Compounded growth of 20-30% over the next several years "

Let's hope for a highly profitable and socially responsible E pharmacies in India.

Article by

Stalwin Joju

Stalwin Komban

FAILURE OF NOKIA

Nokia was the world's largest vendor of mobile phones from 1998 to 2012.Nokia Corporation was established in 1865 with its headquarters in Espoo and Finland.It was one of the most dominant mobile phones in the world.The company launched first internet-enabled phone in 1998.

But,Nokia failed due to some of their poor decisions.There are internal and external factors that resulted in the failure of the company.The company struggled to cope up with the innovation,and this resulted in decline of its market share.

Poor marketing strategies was one of the reasons that led to their failure.Nokia decide to launch new products with different brand names that confused their customers.Nokia didn't adopt umbrella branding,which was adopted by Apple and Samsung.

Another reason was the deal with Microsoft.Microsoft acquired Nokia,the biggest blunder that wasn't fruitful.This partnership made Nokia dependent on Microsoft.

Lack of innovation in products significantly contributed to the brand failure.While brands like Apple and Samsung came up with advanced phones,Nokia launches phones with basic features.These dull features didn't help.Nokia didn't adopt the latest technologies.

There was a change in top management.In 2006, Jorma Ollila was replaced by Olli-Pekka Kallasvuo as CEO.The new management focused more on traditional phones rather than coping up with latest changes in technology.

The company also overestimated its brand value.They believed that people will purchase Nokia manufactured phones,if they used just better software.This was a wrong belief.

Nokia was a most recognized brand till 2007.But the things began to change with the entry of Apple and Google in 2007.Nokia's failure is the best example that tells us, even the most recognized brand may fail when they don't cope up with changing environment and watch their competitors.

Malavika VJ

Blockbuster- American 🇺🇸based video rental company

Blockbuster was one of the most important video rental chain that operated globally. David cook is the founder. It was found in 1985. The headquarters were in texas, US. 

It is a prominent video rental chain that operated globally providing movie and video game rentals through physical stores. The rental rates depends on the movie. In the late eighties it was $3.69 for a new release. $2.99 for older catalouge and $1.99 or even $0.99 for older content. The price of premium plan -3 DVD's a time and unlimited in store trades will rise to $34.99 from $24.99 a month. 

During its peak times, in 2004; the company had 9094 stores and 84300 Employees. Netflix, Hulu, Mubi, Crunchyroll were the main competitors of this company.  The main reasons for the failure of this company was as follows : 

Competition from Online streaming services : The rise of online streaming services provided consumers with a more convinent and cost effective way to acess content, which contribited to the decline in demand for physical rentals. Blockbuster accumulated significant debt due to it's expansion and aggressive store accqusitons, which put further strain on its financial position during challenging times. The company was slow to react to market changes and consumer behavior giving competitor s a chance to gain a strong foot hold in the emerging digital media landscape. This company did not invest enough in technological innovation or unique offerings to differentiate itself from competitors it relied heavily on its existing business model and did not anticipte business model in technology that would disrupt the industry. 

As a result of these factors, Blockbuster filed for bankruptcy in 2010 and closed most of its stores in the following years. Netflix, which was once a partner of Blockbuster, ultimately surpassed it and became one of the leading global streaming platforms. The failure of Blockbuster serves as a cautionary tale for companies that fail to adapt to changing market dynamics and consumer6 preferences, emphasizing the importance of innovation and staying ahead of the competition. 

Article by 

Nanditha Nandakumar