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 Yahoo failed to develop and iprove their services since their technologies were outdated and inefficient.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

The Key to Financial Freedom: How to Make Your Money Sweat for You

 

People claim that making money is really difficult and they go after it like a donkey chasing carrot.

 

" The rich don't work for money, they make the money work for them"

 

I'll now demonstrate how young people can become wealthy and thus enable you to appreciate the beauty of finance. I'm going to go over some ideas to make you understand the concept which I indent to disclose.

 

Compounding simply refers to the increasing value of an asset due to the interest earned on both a principal and accumulated interest.

 

Annuity is a series of payments made at regular intervals. Future value of annuity is among the best financial loopholes . How future value of annuity can be calculated is demonstrated in the illustration inserted.

 

Below is an example that explains how future value of an annuity works in real life:-

 

Just imagine that on your birthday, your family buys you a cake and other gifts, and you happily enjoy them. However, if you set aside ₹ 2000 from your birthday celebration each year to invest, the following amounts can be obtained by investing at various ages by the time you reach retirement.The illustration will help you to understand the magical effect of compounding.

To clarify the previously mentioned numbers. An amount of ₹ 1,46,87,715  can be secured if a person invests ₹ 2,000 per year on their birthday starting at the age of 20 and with a total investment of ₹ 80,000  ( 2,000 per year for 40 years).

The amount ₹1,46,87,715  comprises of the  capital amount ₹ 80,000 and interest amount 

₹ 1,46,07,715.

 

Therefore, simply by analysing the numbers, you would realise that by the time you reach retirement age, you will be a crorepati.

 

Thankyou.

 - Ujwal Unnikrishnan

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