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notjustinfo.com |
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Knowledge centre for MBA students. |
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Autopreneurship By Professor
Gnanaharan May 2006 An interesting article written by Radhika Chadha in yesterday's (May 17,
2006) BrandLine supplement of The Hindu Business Line rekindled this Blogger's
long-held interest in the Auto Travel Industry and provoked the blogger to
post this article. The auto travel segment of the transportation sector could
play a pivotal role in more than one way, if a purposive intervention is
initiated at the earliest. Radhika's article focuses on one important aspect of the industry, i.e.
an absolute stalemate in terms of design innovation. This can best be
addressed through the market mechanism: by encouraging more and better
competition. Right now, Bajaj Auto dominates the industry with Mahindra’s and
Piaggio being just in the "also ran category". But the proposed
entry of TVS Motors and Honda India can be expected to stir up the market
leading to a spate of innovative designs and models. This particular piece lays equal emphasis on business concept or business
model innovation. This industry represents a fertile ground for such
innovations. But it has been bereft of them for long. Recently, one new
business model (atleast in Tamilnadu) in the form of Share Auto got
introduced. But despite the model's inherent attractiveness, it is yet to
make its mark in terms of market share or viability. It only lends credence
to the belief that Government-induced initiatives are good at attracting more
players rather than creating visionary enterprises. Failure to attract reasonably sized enterprises into the market or
inability to inspire visionary individuals to enter into the market is more
than glaring. Scope exists for multiple business models and proliferation of
industry players. And the basic principles of marketing like segmentation,
targeting, and positioning (STP) should be applied. In other words, what is
needed today is a repeat of something like TVS entering into bus transport
few decades ago. The industry like most others, need vision-driven,
value-based enterprises. Today auto drivers are widely perceived and known
for cheating. Quite unfortunately, Chennai is considered to be the worst in
the whole country on this score. Other places are not entirely different. This is one among the major problems plaguing the Tourism Industry in the
country. A click and browse of the http://www.google.com/
would show a number of unpleasant experiences narrated by people from
different walks of life. Local commuters are not spared either. But one good
thing about this otherwise somber scenario is the belief and confidence that
things could be changed for better. To make this happen, all the stakeholders
of the society should join together and act on it. The problem assumes
greater significance from the point of view of the people involved and the
industry in which they operate. They are part of the 300 million strong
segment called "unorganised sector". The number of people dependent
on auto industry would outnumber the people in the organised bus transport
industry by a big margin. Above all, the biggest challenge and opportunity in the area of
Entrepreneurship Development would be to impart the entrepreneurial skills
and values to these people who are already in that mode. The National
Commission for Enterprises in Unorganised Sector headed by Arjun Sengupta has
just recommended a Social Security Scheme for them promising health and life
insurance, provident fund and old age pension. A huge sum of Rs.6384 crores
from the Centre and Rs.1254 crores from States are earmarked for this scheme
for the first year alone. This presents a wonderful opportunity to look at
the issues facing the unorganised sector segments like auto travel and
address them in a wholistic manner. Such a course of action should also
include promotion of vision-driven enterprises run with values. This will in
turn ensure hassle-free, experience-rich, inter-city conveyance for the
customers and a quality life for the autopreneurs. |
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