Low-Cost Players

Financial calculations of low-cost players are different from established companies. Their business models turn smaller gross margins into higher operating margins and hence impressive returns on assets. No wonder their capitalisations are oft en higher than industry leaders. They have also created tremendous wealth. Twelve of the top twenty five in the Forbes’s list of the world’s richest people in 2006 made their fortunes by creating (or inheriting) low-cost businesses.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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A BILLION DOLLAR DEAL!

After Boeing announced its huge investment plans for India recently, it is now the turn of its arch rival, the European Airbus to launch itself into the action mode. Realising the optimism in the Indian air space, Airbus is wasting no time in cashing on it. The world’s largest aircraft manufacturer recently announced its plans to invest $1 billion in India over a period of ten years. Airbus will set up training centers (including for pilots of its A-320 model), maintenance, repair & overhaul facilities (MRO) along with engineering & design centers by the year 2007.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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