Friday, 10 March 2017

Why some Startup blooms and some dooms !!

Not critical here with Startups, I myself a big fan of Startup and believe whenever something new from small is launching in a market we should have a eye on it and should not underestimate it. I salute some bold decision from the new age mindset who build "Nothing" to "Something" which later acquires another "Something" to become "Next Big Thing" or did become "Next Big Thing". If Startups are lucky enough then they rocks the market soon otherwise dooms without sensing anyone. In recent past specially in Metros where the level of Education gone quite high along with motivations saw many competition on the field offering best of best in the market. since Metros are favorable for Startups because of its opportunity also it helps to get desirable investment favors easy to do business in that environment. Investments are always a big key for any company and to keep getting the investors confidence Startups tries something which may favors them or go against them. In recent past Startups flutter either due to negativity against the brand in the Market or due to Investing Group start loosing confidence from the brand. Not only small groups but now even big giants and their top brass are busy pulling chairs from each other but tats a legacy fight between legends and with startup it indicates to become next "legacy".

Its no rocket science that only gutsy people manages to start a Startup, who dreams something big but the problem with today's gen is with too much competition at the same field and most of our Startup are either struggles for funding or acquires by biggies. Another big issue for Startup is the way to sustain as most of the Startup aims to serve one another. Today's most famous startup spot are recharging, foods, cabs or e shopping. Television Media can't be categorize in Startup as they're launching by Veterans with a great backup of funds, its like living one creation to form another creation to serve some propaganda. Now in recent past when you figuring out Recharging Startups, post demonetization its importance and growth increased drastically but not due to someone's call for Digital India but due to cashback which they offers which benefited many. But roads for them are not easy recently MD of HDFC Bank Mr. Puri spoke about existence of recharging apps who're facing a huge loss due to this cashback offering and how quickly they're crunching to sustain their user base. One of the steady growing recharge startup is already up for sale due to its promoter Startup is struggling for funds after laying off more then half of thousands employees.

Two days later one of the leading recharging app who made quite a impact post demonetization changed their terms and conditions on 0% amount deduction from Credit Card to their Wallet as they claimed a number of users found doing mischief with the company's policy, they already made a complaint against some user base before as well, which shows that how a small loophole can hurt a company hard. They may took back that 2% deduction which they looks to offer as some coupon but they already indicated strangulation in the Market. Similarly if decoding about food chain its quite evident that their share are quite limited and mostly belongs to Metros where Youths live as independent. Last year one of the leading Food Startup layoff due to difficulty in survival. In recent past cab startups flourished but their basic problem is connecting with the people, one of the leading cab group from United States working hard with their existence but incidence of recent past created insecurity among them also impacted the current competitors and future upcoming groups too.

The most talked about Startup in recent past are E Shops either its a Grocery, Foods or Electronics, most trusted site are selling product in big number per minute otherwise all other are in records only. As I mentioned that if groups are being invested by some big giants then its because of their own growth and to proof the "lone wolf of the street" or the "one with eagle eye". Most of the cases Giants do like to loose money in initial days and from there the problem starts as Giants when realizes that its too much and lets now concentrated to have the money back with some interest then all of the sudden leadership behind Startups gets a call to take a action and if they're quite visionary and if able to pull the confidence back then the storm will stable if not then clouds of crisis will continue till some one from Higher Authority hit the last nail in the coffin.

Recently not only major E Comm but one major Electronics group who debut in India year ago called the "major financial crisis" in the group and lay off the staff heavily, they called the reason behind the failure is heavy investment in the marketing to promote the ecosystem of their "Smartphone" and "Smart TV" division. Indeed trend of buying latest smartphones are increased in front of the youths but invention and demand in this sector changes every month. Today Smartphone should not only looks trendy but should be compatible for latest build - stable versions of App and Security Patches and due to failing in this we already legends debacle in this sector due to this reason in the past. During the festive season all E Comm group tries to shuffles the market share by challenging each other and this is what I wrote in "Big Ecom War is back with this festival" but post demonetization exercise many small groups either took a blow badly or seized operation and this is what I wrote "Demonetization cleaning the chunk from TV, hit the local brand" on the same.

In the modern era competition its quite hard until any group either Startup or Biggie not luring customer base with some offer or cashback and India is such a market where a demand will be created only if giving something extra. But in Startup most of the group may do whatever they can to make a statement but misses their focus on "Customer or Client Satisfaction", Most of the leading and successful brand cares about good customer satisfaction its their reason for success, till customer or client is not happy they will not return back for any future business. Customer or Client who is choosy or moody if don't likes the service will not only going to give a harsh word but will also not choose the brand for the next time. People with big purse only believes in facts and figures and they want young lads running the management knowing the specific goal which needs to be achieve to keep the momentum alive rather then loosing the pace. Tats why its quite essential to fulfill demand from every side of the business, missing any of it will led the negative impact which only hurt the future prospective of a "brain child".

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