Everything was new once and all innovations were deemed revolutionary. Today, newer innovations are being sought after every day, technologies, trade practices and marketing styles are improving & innovating and businesses as well as consumers are aware of the shift in trade preferences. Change seems to be the only constant. Which is why, in a time when the world is accepting change hands on, it might be time to re-look and re-evaluate opportunities beyond the humdrum of decades old business routines.
Take for example, the recent Vodafone & Idea merger – a consolidation of businesses to get back in the game. A strategic move by the telecom biggies in a time of dwindling margins, courtesy Reliance Jio’s game changing pricing strategies.
Notice how a change brought about by one, leads to another. An effect will have a cause and cause can be triggered by a number of factors in business in today’s rapidly evolving needs and demands of the consumers.
The steel, cement and power industries are primary industries serving a nations economy. It is unlikely that these industries will go obsolete but a constant upgradation and game-changing moves, such as Jio’s, is the need of the hour for individual plants.
After bearing slowed demand and incurring heavy losses, large, medium and small plants are all under a lot of stress. At this time, shape up or ship out – is the prevailing sentiment among plant owners. Both the moves will require a change in the thought process and an acceptance one’s own situation in a matter-of-fact kind of way. In order to reach a decision to either shape up or ship out, a thorough evaluation of business, various opportunities and options available must be carried out.
Recall SAIL – the largest steel PSU in the country divesting three of its units. SAIL struggled with big losses over the past couple of years and in order to shape up, decided to divest three of its steel units to raise funds.
Such measures result from a careful weighing of all routes available and choosing the one best suited to your business. Besides divestment, fund raising routes are many such as equity based funding, debt financing and foreign funding. In fact, India is gradually becoming a lucrative destination for foreign investments. Also, M&A activities have gone up significantly and India is pegged to be the center of mergers of acquisitions in the Asia-Pacific region in the coming year.
M&A, consolidation, fund raising are all a few routes one can make in their business to bring about a change to regain the lost footing.