Business Concepts

Navigating the world of financial planning can be overwhelming, especially when seeking stability for the future. Amid the numerous options available, one financial tool stands out for its unique attributes - the Fixed Indexed Annuity. One such FIA is Allianz fixed indexed annuities,which stand as robust pillars of stability by providing a secure financial future. This article explores the mechanics and benefits of this, shedding light on their role in providing a secure financial lot. What are Fixed Indexed Annuities? Imagine a financial instrument that combines the safety of traditional fixed investments with the growth potential tied to market performance. This is...

The business & startup world likes to borrow terms & concepts from different fields and use them analogously to simplify communication. For example, social proof, a term from the field of psychology, is often used in businesses & startups to explain the importance of authentic testimonials from people who used your product. I could give more examples but I hope you get the drift. Just like social proof, ‘Table stakes’, an idea that has its roots in the game of poker, is another frequently used term used in the startup world. In the world of poker, ‘Table stakes’ basically signifies...

The startup world loves the concept of ‘Product-Market Fit.’ Marc Andresson, widely credited for developing the concept of PMF, defined the term as follows: “​Product/market fit means being in a good market with a product that can satisfy that market.” After the introduction of the concept, there has been a considerable amount of thinking on defining the concept better and the quantitative and qualitative metrics one can use to measure if they have achieved ‘Product-Market Fit.' Those developments of thought are out of the scope of this piece, but the point of me beginning a ‘Content Market Fit’ essay by...

Before one can understand backward integration, one must first understand vertical integration because backward integration is essentially a type of vertical integration. But just understanding Vertical Integration without learning about its counterpart strategy — Horizontal Integration — would be like solving a puzzle with a missing piece. So, to help you develop a holistic understanding, I will first run you through Vertical & Horizontal integration briefly before explaining Backward Integration.   Companies looking to expand their business generally employ either of the two strategies: Horizontal Integration or Vertical Integration.  Horizontal integration is when a company expands by acquiring a similar one in their...

Before we begin to understand forward integration, we need first to understand vertical integration because forward integration is essentially a type of vertical integration. But even before we dive into understanding forward integration, it would be good to a step back to understand Horizontal integration and vertical integration are two types of business strategies that go hand in hand. Generally speaking, companies looking to expand and grow their business employ either of the two strategies: Horizontal Integration or Vertical Integration.  When a company expands by acquiring a similar company in their industry at the same level of the supply chain, the...

Writing for Techcrunch in 2013, Aileen Lee, an American venture capitalist, coined the now frequently used word ‘Unicorn’. Unicorns, as we all know now, are companies valued at more than $1 billion. Similarly, Decacorns & Hectocorns are sister terms of ‘Unicorn’.  Decacorns are companies having a valuation of more than $10 billion. Hectacorns are companies having a valuation of more than $100 billion. As of 2022, only two companies — ByteDance & SpaceX — are part of this elite club of Hectocorn companies.  ByteDance, the parent company of Tik Tok, was the first company to become a Hectocorn after it was valued...

The goal of reaching a valuation of $1 billion, or in other words, becoming a 'Unicorn', is considered a milestone in the life of a startup.  But with more than 1000 unicorn companies as of Feb 2021 in the world compared to just 142 in 2015, the unicorn status has lost its charm. Startups are now setting their eyes on higher targets of becoming a ‘Decacorn’, Put simply, Decacorns are private companies having a valuation of more than $10 billion. Relative to Unicorns, Decacorns are a much more exclusive community, consisting of around 49+ companies as of 2021. Some familial...

“A single decision has the power to change your life” We have all heard this phrase, restated, time and again in our lives by someone or the other, in a slightly distinct fashion, if not using the exact same words. In the case of Jeff Bezos, one of the richest men on the planet, a single decision did actually end up changing the trajectory of his life, and the world of commerce.  The story dates back to 1994. At the time, Jeff Bezos was working in a senior management position in a company called D.E. Shaw, a successful quant-focused hedge fund....

Let’s suppose you bought a new printer. But there is no point in owning a printer without buying any cartridges. So, you go ahead and buy a pair of cartridges to make use of the printer.  A few months later, you run out of cartridges and are, in a way, forced to buy them again. During the lifetime of using this printer, it is likely that you could end up spending more money on cartridges cumulatively than you spent on buying the printer.  If this happens to the case, the company you have bought the printer from would also end up...

High Low pricing is a popular pricing strategy in which a company charges a high price for a product in the beginning and reduces the prices later using discounting. Unlike the price skimming model, however, prices are not slashed permanently. Under the high low model, product prices alternate between high & lower during a particular time duration.  The goal of high low pricing is to lure customers to visit the stores with discounts, which might also lead them to buy other products as a result. The high low pricing is also different from everyday low pricing, which consistently uses low...