個案總覽

The advent of the world wide web and the entry of private players in India’s post-liberalization era resulted in India Post losing a substantial volume of its business to e-mails, faxes, short-message services and private-courier-service providers. Additionally, government policies regarding India Post had long remained unchanged. As a consequence, India Post was caught up in a vicious cycle of decreasing mail traffic, low levels of technology investment, poor financial performance and poor customer service. Critics also raised questions regarding India Post’s lack of market orientation. Nevertheless, India Post responded by taking advantage of its huge distribution network, pursuing related diversification and modernizing its facilities. Despite these efforts, undertaken between 2005 and 2012, India Post was unable to report any profits, although the efforts generated revenue growth. Among all the services that the postal department provided, only postal insurance generated significant profits. It was from this perspective that India Post’s management wondered whether it should follow the example of countries like Germany and the Netherlands, where the postal services had been privatized, or whether it should wait for the 2005-2012 initiatives to generate profits for India Post in the coming years.

The advent of the world wide web and the entry of private players in India's post-liberalization era resulted in India Post losing a substantial volume of its business to e-mails, faxes, short-message services and private-courier-service providers. Additionally, government policies regarding India Post had long remained unchanged. As a consequence, India Post was caught up in a vicious cycle of decreasing mail traffic, low levels of technology investment, poor financial performance and poor customer service. Critics also raised questions regarding India Post's lack of market orientation. Nevertheless, India Post responded by taking advantage of its huge distribution network, pursuing related diversification and modernizing its facilities. Despite these efforts, undertaken between 2005 and 2012, India Post was unable to report any profits, although the efforts generated revenue growth. Among all the services that the postal department provided, only postal insurance generated significant profits. It was from this perspective that India Post's management wondered whether it should follow the example of countries like Germany and the Netherlands, where the postal services had been privatized, or whether it should wait for the 2005-2012 initiatives to generate profits for India Post in the coming years.

There is an ongoing debate among scholars regarding the existence of a fortune at the bottom of the income pyramid. While some scholars argue that there is a profitable market at the pyramid base, others refute this proposition, arguing that targeting poor people as customers could lead to unethical business practices and further their exploitation. With the aid of mini cases, this article explains that there is indeed a fortune to be made at the base of the pyramid but that good fortune can be created for both corporations and poor people if the population at the bottom of the pyramid is treated as suppliers, producers, co-owners, and/or employees rather than as mere consumers. However, in terms of consumers, there is a market for firms at the base of the pyramid through which they can earn profits and simultaneously help eradicate poverty, mainly by lowering the cost structure for poor people. In other words, firms that can reduce poverty and provide cost-effective utilitarian goods and services to poor people have more to gain from such individuals than those firms that provide more luxurious goods and services or offer goods with mere aesthetic or emotional value. With the help of mini cases, this article explains four measures firms can use to create fortunes for themselves as well as for poor customers by avoiding affordability and adaptability traps.

The case focuses on the profitability of the Indian aviation industry and explains how Indigo Airlines, a new entrant in the Indian aviation space, registered profits within three years of its inception while its competitors continued to struggle with losses. The case demonstrates how a firm incorporating innovative business practices can not only survive but also earn abnormal profits. The strategies adopted by Indigo Airlines to reduce its operational cost and enhance its revenue are discussed in the case. The case also explores whether the profits earned by Indigo are sustainable in the long run and focuses on the changes in the competitive positioning of Indigo Airlines as it switches from the position of a low cost player to a hybrid player in the aviation industry.

The case focuses on the profitability of the Indian aviation industry and explains how Indigo Airlines, a new entrant in the Indian aviation space, registered profits within three years of its inception while its competitors continued to struggle with losses. The case demonstrates how a firm incorporating innovative business practices can not only survive but also earn abnormal profits. The strategies adopted by Indigo Airlines to reduce its operational cost and enhance its revenue are discussed in the case. The case also explores whether the profits earned by Indigo are sustainable in the long run and focuses on the changes in the competitive positioning of Indigo Airlines as it switches from the position of a low cost player to a hybrid player in the aviation industry.