Thread by @MarcellusInvest

How does a smart company achieve dominance in its business? A short thread 👇🏼

Attack a challenging aspect of the sector: Eg. India is a vast country riddled with poor infra, diverse socio-economic demographics and non-uniform demand patterns which makes it challenging to build large B2C business (2/7)

Don’t address the challenge in a simple straightforward manner: The easy way is to build a push-based model through 3rd party wholesalers. Instead, build direct reach by removing intermediaries or create pull demand via influencers eg. Pidilite's initiatives with carpenters (3/7)

Intensify the challenge my adding extra layers of difficulties: Create customer stickiness by increasing switching costs or search costs. Eg. paint dealers are reluctant to switch to other brands due to high inventory turns offered by Asian Paints (4/7)

Come out with a solution to the challenge which competitors cannot replicate easily: Disrupting the market by creating new channels to deliver the product/service - Dr. Lal Pathlabs doing home collections on a mass scale (5/7)

Keep evolving the challenge to make it difficult for competition to catch-up: Improve operating efficiencies or pass on benefits of scale to delight customers and improve loyalty. Eg. Relaxo Footwears has followed a volume-led growth strategy and has restricted price hikes (6/7)

To know more, read our blog, Inside the Mind of the Indian Monopolist
(7/7)
 
marcellus.in/blogs/inside-t…