From the last few days I was trying to find an optimum risk-hedging frontier (RHF) like what we had in our Economics graduation courses such as Production Possibility frontier. In the horizontal axis we suppose regions where the business are getting expanded and/or contracted and in the Y-axis we keep the business verticals. See the following image where I have tried to describe a basic architecture as to how all the 5 business verticals could be spread all across the continents and the question is, how efficient the frontiers would like be so that business could operate on a pre-defined frontier hedging the risk across vertically and horizontally both.
But the real problem is that, I could hardly draw a pentagon or hexagon so that in the point of intersection we could draw a business utility curve satisfying both the first and the second order conditions of profit maximization. Spend a lot of time but without concrete result. I need some guidance 😦 or productive discussion needed.
risk hedging frontier
So far the TITAN is the only ruling company in the branded wrist watch segment in India after HMT. No other company have that much of market share at present. However, some companies like Sakura, Planet Watches (p) Ltd., KM International etc have tried to do some good business but they perhaps failed to increase the share. Moreover, the foreign branded company made watches are so high in the price level in comparison to the Titan made watches, that common people don’t have the access to those brands. And thats why Titan remain the no. 1.
The monopoly should be broken and so far my feelings are concerned, there is no competition as such in the lower type of branded wrist watches. With the rise in the income level, the expenditure level has also increased and India has became the expenditure driven economy.
Online selling method could be one of the method in building the brands. Most of the above companies next to Titan and HMT, don’t have their own website even. They can think of that. Foreign companies might have though this fact and waiting for a big jump towards the popularize watch market. We need more competition breaking the monopoly of Titan Industries so that better quality and service we can receive.