“We have already sold 424 units of the 3 series and 7 series till now; and we’ll start selling the 5 series July onwards”

Encouraging? Well, if you start from zero, any growth is dramatic growth, isn’t it Peter?! But curbing our naysayer mentality, allow us to quote that as per BBC’s research (and even SIAM data), the price mentalities of Indians ensure that the luxury car segment makes up a pathetically puny 0.03% of the total car market in India. And the fact is, despite rising from 0 to 424 units, BMW will reach a saturation too fast and too furiously! Eat this – Mercedes has been operating in India since 1993, and aft er 15 glorious years, manages to sell just around 2,000 cars every year.

Wasn’t this unprofitable scenario of Indian operations the very fact that ensured that BMW did not enter the Indian market at an earlier stage, and that too despite the fact that Mercedes had already entered the Indian space so many years back? “We are not late, because for BMW, it is important to enter with a 100% subsidiary and that was only possible after 2001.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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False alarm to rake in profits!

The most parroted Avian Influenza (Bird Flu) outbreak in China in November 2003 was publicised as the deadliest epidemic of the recent times; projected as if the next apocalypse was in the offing. Time passed by, fears subsided & the world got used to living with the hype as it ‘flu’.
In the absence of any hard evidence to prove the possibility of extinction of mankind, the realization dawned that the Chinese variant was a hoax. The virus had limited impact in remote areas & the possibility of human to human transfer of the virus was ruled out by scientists. A fact vindicated by the British Medical Journal (BMJ, October 2005), “Since 2003, most of the resulting 118 human cases have been healthy young children or adults in close contact with infected flocks, with a mortality of over 50%.”

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Source: IIPM Editorial, 2007
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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