Jet Airways

Naresh Goyal founded Jet Airways, a full-service Indian airline, in 1993. It began operating in
May 1993 and over time rose to prominence as one of India's top airlines, renowned for
providing high-quality service. Jet Airways operated a large number of local and
international routes holding a market share of 17.8 per cent in October 2017. It was a part of
the global airline alliance Etihad Airways Partners. On 17th April 2019 the airline ceased all
operations and was grounded.

Business Model

1. Quality Service: Jet Airways positioned itself as a premium airline, offering superior
service, in-flight entertainment, free meals for all passengers and comfortable seating to
passengers were the key attributes that it started with.
2. Domestic and International Operations: The airline operated both domestic and
international routes, connecting major cities in India to destinations across Asia, Europe, and
North America.
3. Strategic Partnerships: Jet Airways engaged in code-share agreements with Etihad
Airways which held 24% stake, Air France-KLM, and Delta Air Lines expanding its network
and offering passengers even more travel options.

Innovation and changes

1.International Expansion : In 2004, Jet Airways initiated its international operations,
launching flights to destinations such as London, Dubai and Singapore making it one of the
few Indian airlines to expand its footprint internationally.
2. Low-Cost Offshoot : Recognizing the evolving needs of budget-conscious travelers and
due to the competition with Indigo, Jet Airways introduced JetLite in 2007, a low-cost
subsidiary that catered to this segment and provided a more accessible way to explore the
skies.
3. Fleet Upgrades: The airline continuously upgraded its fleet with modern and fuel-efficient
aircraft, such as the Boeing 777 and Boeing 737.

Reasons For Failure

1. Lack of balance sheet focus : One of the main reasons for Jet Airways' failure was poor
money management. The airline had borrowed a lot of money, and it couldn't pay it back.
This created a big financial crisis that the airline couldn't escape.
2. Tough Competition: The airline industry in India changed a lot with the arrival of low-cost
airlines such as Indigo and Spicejet. These cheaper airlines made it hard for Jet Airways to
compete.
3. Strikes and Disputes: Employees at Jet Airways went on strikes and had disagreements
with the company. These strikes and conflicts made it harder for the airline to run smoothly
and made it lose even more money.
4. Running Out of Money: The biggest turning point was when Jet Airways couldn't get
more money to keep running. With all the debt and financial problems, they couldn't find
new investors or loans to stay afloat. This forced them to stop their flights and, eventually,
declare bankruptcy.
Videocon Industries :
Videocon Industries was founded in 1979 by Venugopal Dhoot with its headquarters in
Mumbai. It initially started dealing in consumer electronics and home appliances such as
mobile phones, Colour TVs, air conditioners. After becoming a popular brand in these
sectors, they became a conglomerate and diversified their business in Oil and Gas, Telecom,
and DTH Services.

Business Model :

1. Consumer Electronics and Appliances: Videocon gained recognition in the consumer

electronics market, producing televisions that were popular in India and other countries. For
example, a middle-class Indian family might have purchased a Videocon television for their
home.
2. Global Expansion: Videocon was one of the early Indian companies to expand its
consumer electronics business internationally. It reached markets in Southeast Asia, the
Middle East, and Europe, enhancing its global presence.
3. Oil and Gas Exploration: In addition to consumer electronics, Videocon diversified into
the oil and gas exploration sector. It secured exploration rights for several blocks both in
India and overseas, aiming to tap into the energy sector's growth potential.
4. Vertical Integration: Videocon adopted a vertical integration strategy, manufacturing
critical components in-house, which helped control costs and ensure product quality.

Innovation and changes

1. Technological Advancements: Videocon continuously incorporated technological
advancements into its consumer electronics and appliances. This included launching
products with features such as high-definition displays and energy-efficient appliances.
2. Brand Acquisitions: The company also acquired brands like Kenstar and Electrolux,
expanding its product portfolio and market reach.

Reasons For Failure

1. Excessive Debt: One of the primary reasons for Videocon's failure was its overwhelming
debt burden. The company borrowed extensively to fund its diversification and expansion
efforts. The mounting debt, coupled with challenging market conditions, made it
increasingly difficult to service the loans.
2. Regulatory Issues: Videocon faced allegations of irregularities and controversies related to
its oil and gas exploration ventures. These issues raised concerns and resulted in regulatory
scrutiny.
3. Lack of Strategic Focus: The company's diversification into unrelated sectors such as oil
and gas created management challenges and diverted resources away from its core
consumer electronics business. The lack of a clear strategic focus hindered its ability to
effectively manage its diverse portfolio.
4. Economic Downturn: A global economic downturn and a downturn in the oil and gas
sector in the mid-2010s negatively impacted Videocon's financial performance. The demand
for consumer electronics and appliances also experienced a slump during this period,
affecting the company's core business.
Aircel
Aircel, founded in 1999, quickly became a household name in the Indian
telecommunications industry. Much like other Indian mobile service providers, it offered a
variety of services, allowing people to make calls, send text messages, and access the
internet using mobile devices. By the mid-2000s, Aircel was serving millions of subscribers
across the country, giving formidable competition to established players like Airtel and
Vodafone.

Business Model

1.Mobile Telecommunications: Aircel focused on mobile telecommunications, offering a

range of prepaid and postpaid mobile services, including voice, text messaging, data
services, and value-added services to consumers and enterprises.
2. Affordable Pricing and Innovative Plans: The company often adopted competitive pricing
strategies, along with innovative and customized tariff plans, to attract and retain customers.
This included special offers for student segments and niche markets.
3. Pan-Indian Presence: Aircel aimed to establish a strong presence across India, serving
both urban and rural markets. The company secured licenses to operate in multiple circles
(service areas) and aggressively expanded its network coverage

Innovation and Change

1. Data Services and 3G Expansion: Aircel was one of the early adopters of 3G technology in
India, providing high-speed data services to consumers. This innovation allowed the
company to tap into the growing demand for data connectivity.
2. Focus on Rural Markets: Aircel recognized the potential in rural markets and expanded its
services to underserved areas, bringing mobile connectivity to remote regions and
facilitating digital inclusion.
3. Strategic Partnerships: The company forged strategic partnerships and tie-ups with global
telecom providers like Micromax, Snapdeal to enhance its international connectivity and
service offerings.

Reasons for failure

1. Intense Competition with Price Wars: Aircel was caught up in a pricing war in the Indian
telecom industry. Reliance Jio, a new entrant, offered free data and calling, which prompted
other operators to reduce prices, squeezing profit margins for all. Aircel, like its competitors,
had to lower prices, impacting its revenues.
2. Spectrum Allocation Controversies: Aircel was affected by the 2G spectrum allocation
controversy, which was a major political and regulatory scandal in India. The controversies
surrounding the allocation of airwaves to telecom operators led to legal issues and
regulatory scrutiny, creating uncertainty and impacting Aircel's operations.
3.Mounting Debt from Expansion : Aircel's ambitious expansion efforts and the cost of
acquiring spectrum drove the company into significant debt. Managing this financial burden
became unsustainable, particularly in the face of fierce competition.
4. Service Quality Issues: Over time, Aircel faced customer complaints about network
quality and customer service. Frequent call drops, slow internet speeds, and poor customer
support led to the loss of subscribers and a declining reputation.