Strategy to रणनीति.

Academic studies give us a good theoretical framework to apply in real world. These frameworks are dynamic in nature and comes with certain prerequisites, which are the back bone of underlying results. The prerequisites are similar to boundary layer equations of fluid mechanics in which any change in boundary layer equations will result in drastic change in end results. Similarly, while applying the frameworks in real life situations we should first understand the underlying condition which resulted in the framework formation. The beauty of running a business is that the situation keeps on changing and hence, one has to be dynamic enough to change accordingly.

The HBR case studies may not always be applicable in Indian scenario. Take for example, in US festive season and dates are fixed such as  25th Dec or 1st Jan but in India the dates of Durga Puja, Dhanteras and Deepawali are not fixed. From my business experience I can tell you that customers behave differently when all these festivals are in same month and when they are in different months! So the forecasting of demand with seasonality factor might not be that accurate in India than in US! Every 2nd or 3rd year Deepawali comes in the month of November but by the time you get your data very accurately, the economy has expanded by more than 7.5% CAGR which means that the per capita income has also increased represnting the consumer preferences has also changed. I believe here we will have to move from strategy to Indianised “ रणनीति”. The desi version of framework will incorporate all the local problems (in terms of fluid mechanics, boundary layer equations). From resource management to marketing, we have to take all B-schools learning with a pinch of salt.

The other major challenge that entrepreneurs face is the idea of India being a homogenized market. India is such a huge country that even though it is growing at 8% there are areas which may be growing at 15% while other may be at a meager rate of 3%. One should be at right place at right time to gain maximum from this growth story. Both start-ups and traditional businesses should understand the local traditions and diversity of different parts of India while expanding and extrapolating their local success. For example, the food preference in Gujarat is much different from that of North-East. Similarly, the success of certain automobile brands is also localized. If you are in event management business, then your business model has to be different in north and south India. Compare this with US where they have more or less a similar pattern in marriage celebration.

The major growth driver of our country are in fact few cities! Even the ease of doing business index is from big metro cities. The reason why we don’t have 10% plus growth is not due to lack of government support but due to excessive government interference. The day one can open a small shop in small cities of UP, Bihar, West Bengal, Odisha etc without any government interference I will say we have improved in ease of doing business. For example, in UP, the taxes are same in Noida and Gorakhpur. If you want to set up an industry in Gorakhpur and want to buy land from Gorakhpur Industrial Development Authority (GIDA, it is similar to NOIDA) on EMI then they will charge you whopping 15% interest rate! If you have more than 10 people working in your premises, then you will have to register in labour department! Moreover, if you want to construct a building in the city then you will have to face countless departments! Many things have changed by digitalization but it has to go a very long distance.

Things are changing rapidly. It is an important as well as exciting phase in the history of our country. The biggest positive change is that now profit is not sin. Doing business is not considered as bad by the society. As an entrepreneur I will say that I learn every day. As country we are poised to be at top and I don’t have any doubt on it. We have to keep up the fire. To all the people who want to do business I will suggest that be grounded and learn everything from everybody. Talk to your uber or ola driver, trust me they can give you good रणनीति. They might be weak in jargons but they will tell you the real pulse of the market. Remember to take a leap from strategy to रणनीति.