DAVID FIGHTING

GOLIATHS:
THE RISE OF AAM AADMI PARTY

Anshul Gautampurkar IGTCPG28MU014

Jayesh Menashi IGTCPG28MU037
Omkar Kulkarni IGTCPG28MU054
Rashmi Rao IGTCPG28MU062
 • Problem definition
• Background: Indian Political Landscape
• Corruption scandals
• External environment analysis

Flow of the I.
II.
PESTEL
Five Force analysis

presentation • What led to formation of AAP?

• AAP’s Vision
• Participation in Delhi election and key success factors
• Internal environment analysis
I. VRIO
• Should AAP contest Loksabha elections or not?
 • Problem Definiton 1:
“What factors led to the success of Aam
Aadmi Party in Delhi Vidhansabha
Problem elections 2013”
Definition
• Problem Definiton 2:
“Should AAP fight the loksabha elections
2014 to benefit from the favorable
sentiments to get a Pan India foothold?”
 • Incumbent national(3) and regional parties(1650
including state parties) had a large influence nationally
and regionally respectively.

Background: • It was a challenge to sell party’s vision to electorate and

at the scale required during election campaigns in
Indian limited time
• Parties had no steady income source(largely donations)
Political and decreasing number of volunteers who were
committed to party’s vision which made party hire
Landscape in uncommitted ad-hocs and expert analysts for effective
campaigning
2012 • Parties started segmenting voters on religion/caste and
they even chose corruption to get things done
• Their only was of staying existent was to come to
power and fulfil the promises
Corruption Scandals

Major Scams during 2002-2012

2G Spectrum Scam 1,76,000 Crores
Coal Scam 1,86,000 Crores
CWG Scam 70,000 Crores
IGI Airport land grant Scam 50,000 Crores
Air India Scam 25,000 – 30,000 Crores
Rotten Food Scam 58,000 Crores
Hasan Ali Money Laundering 54,000 Crores
Scam
ISRO-Devas Scam 2,00,000 Crores
 External
environment
analysis:
PESTEL
 External
environment
analysis:
PESTEL
 External
environment
analysis:
PESTEL
 Sr. Factor Explanation Risk
No.
1 Threat of entry
i.a. Supply side National as well as regional base Low

Five force
economies of of volunteers and supporters of
scale incumbents
i.b. Demand side The regional and national parties Low

analysis of benefits of scale exercised high influence on

voters

Indian
i.c. Customer No switching costs to voters High
switching costs
i.d. Capital High capital required for Low

politics in requirements
i.e. Incumbency
advantages
contesting national elections
The incumbent parties had an
established long presence &
Low

2012 independent of
size
experience, had a alliances with
regional parties, had their own
media partners promoting them
 Sr. Factor Explanation Risk
No.
i.f. Unequal access Efforts were needed to build a Low
to distribution strong nationwide presence
channels

Five force i.g. Restrictive

government
No policies, little restriction to
enter
High

analysis of
policies
ii. Expected The incumbents could retaliate Low
retaliation aggressively to entry of new

Indian political force

Conclusion: Based on these facts, Indian politics is not

politics in
attractive
2. The power of (Party volunteers, supporters)
suppliers
2012 i.a. Concentration of Nationwide less concentrated
suppliers supporters
Low

i.b. Dependency on The dependency of volunteers High

political parties on parties was low
 Sr. Factor Explanation Risk
No.
i.c. Switching costs No switching costs High
i.e. Forward Supporters may think of fighting High

Five force integration elections themselves or form a

party

analysis of Conclusion: Power of suppliers is high, hence Indian politics is

not attractive

Indian 3 Power of buyers (Voters)

i.a. Buying volume The voter can only vote once Low
politics in i.b. Standardized
products
Differentiated promises from
Parties and can only fulfil if
Low

2012 i.c. Switching costs

elected to power

Not present High

i.d. Forward Voters can contest elections High
integration
i.e. Significant The policies and decisions can of High
impact of elected politicians can impact
politicians the voters highly
 Sr. Factor Explanation Risk
No.
Conclusion: Power of buyers is high and hence Indian Politics is
attractive
4. Rivalry amongst existing competitors
Five force i.a. No. of
competitors
Competitors are large in number High
at regional levels and compete

analysis of i.b. Exit barriers

fiercely
No exit barriers Low

Indian i.c. High aspirations All political parties have high

and commitment aspirations as only few can rule
of parties
High

politics in i.d. Capacity

expansion
Footprint must be increased to High
be effective nationally

2012 i.e. Limited time to Parties have limited time to

promote promote themselves and hence
they compete fiercely
High

Conclusion: Rivalry amongst existing competition is fierce and

hence Indian politics is not attractive
 Five force
analysis of • Conclusion of the five force analysis for Indian Political

Indian
Industry in 2012:
“Overall attractiveness of Indian Politics is low largely

politics in because of high entry barriers and existing severe

competition”
2012
 • In 2011, in midst of declining GDP growth and scams worth billions
of dollars, incumbent INC was facing backlash from opposition and
social activists like Anna Hazare (Anna Andolan).
• Anna andolan pushed for a strong Jan Lokpal Bill to fight corruption
with which government had substantial unresolved differences.
• Which led some group believe that corruption can only be fought

What led to through direct participation which was against Anna’s idea of fight
against corruption

the idea of • This led to a group led by Arvind Kejriwal which got separated from
the andolan and set up own political party to fight corruption by

AAP? direct participation in Indian politics

• The party's administration was very transparent and integrity was
at its core which reflected in its operations and when receiving
funds for campaigning.
• AAP chose innovative untraditional ways of campaigning with very
limited funds in hand
• AAP’s focus was on basic necessities and fight against corruption in
election campaigns and the candidates which contested elections
were chosen by stringent norms and background checks
AAP’s Vision
 Seat Share in Delhi Vidhan Sabha Elections 2013

Participation in
Delhi election INC; 8; 11%

and key success AAP; 28; 40%

BJP; 34; 49%

factors
 • Flat- Only three formal positions
• Transparency within and outside the party

KSF:
Organization
structure Arvind Kejriwal
Pankaj Gupta
(National Secretary)
(National Convenor)

Raghav Chadha
(National Treasurer)
 KSF: Resource Utilization
Resource 1: Candidates
Resource 2: Voters
• AAP asked people to A strong emotional connect
suggest candidates with voters helped in an
increase of voter turn-out by
8-9%

Resource 3: Funds
Resource 4: Party
• Seed donations from Workers
founding members • Strong supporters of Party’s
vision and mission
• Employed innovative
and unconventional • Got support from Auto-
Rickshaw union
solutions to raise
funds • Campaign strategies were
formulated by the volunteers
• Utilized low cost in-house
campaigning • Crowdsourcing was employed
methods for innovative ideas
 KSF: Delhi Demography
Age Group - % Population Share Delhi 2011
The millennials do not have any
15 - 29
emotional affiliation to any 30%
political party
Once converted to party ideology,
they are easier to capture
Less than 15
AAP connected well with the 18- 27%
40 year age group, by stressing
more on the “Real problems” in
their party portfolio 29 - 44
23%

More than 44
19%
 KSF: HIGH VOTER TURN-OUT
Voter Turn-out history
70.00% 14000000
66.02%

60.00% 57.60% 11900000 12000000

53.42%
10727000
50.00% 10000000

8448000

Eligible electors
Voter Turn-out

40.00% 8000000

30.00% 6000000

20.00% 4000000

10.00% 2000000

0.00% 0
2003 2008 2013

Voter turn-out Exponential (Voter turn-out) Eligible electors

KSF: COMMITTED TO A CHOSEN
STRATEGY
Carried out a number of People Movements like
-Anti-Corruption Movement
-Jan Lokpal Bill Movement
-Bijli pani satyagrah
-Nirbhaya Rape case protests

Arvind Kejriwal and party stuck to their strategy of “People Movement” even after they split
with Team Anna and formed AAP
KSF: Empowering people and effective
communication
Signature Campaign Door-to-
door
Campaign

Nukkad Natak
Mohalla Sabha
Campaign
Campaign
 KSF: Transparency builds trust
Institutionalised
Internal Lokpal Financial Transparency

Political
Decriminalization

Political Decentralization
Internal environment analysis:VRIO
Internal environment analysis:VRIO
Sr. Resource Description about resource Valuable Rare Difficult Organiza Implication
No name to imitate tion for
support competitive
ness

5 Volunteer Held placards & banners on roads, flyovers, etc. , pasted party Yes Yes No Yes Temporary
s posters on building walls, door to door & distribution of competitive
pamphlets. Media & campaigning strategies were formulated in- advantage
house by them.
Heterogeneous group of highly motivated volunteers of various
ages, education, profession & backgrounds resulted in new ideas
& innovation.

6 Manifesto Containing promises likely to matter most to target electorate Yes No No No Competitive
segment (18 – 40 age group) parity

7 Crowd Resulted into innovative ideas & increased enthusiasm among Yes Yes No Yes Temporary
Sourcing volunteers. Competitive
advantage
8 Party Front-line party workers provided a crucial last mile, overcoming Yes Yes Yes Yes Sustainable
workers challenge to connect with rural electorates - regularly interacting Competitive
with locals, disseminating party vision & providing feedback to advantage
central party leadership regarding local issues.
Internal environment analysis:VRIO
Sr. Resource Description about resource Valua Rare Difficult to Organiz Implication
No name ble imitate ation for
support competitive
ness

9 Leadersh Arvid Kejriwal : fearless young man who was able to connect with Yes Yes Yes Yes Sustainable
ip people played an important role in making the campaigning strategies Competitive
successful. advantage,
Non Imitable
Achieve vision through : stronger anti corruption body, right to reject all
- Path
candidates if none is suitable, right to recall non performing elected Dependency
representative.
The civil society background of founders played important role in
crystallization of vision & ideology of party.

10 Other Outsourcing : expert professionals with their sophisticated data analytic Yes No No No Competitive
influentia tools were playing increasing crucial role taking over billboard & mass Parity
l people media advertising.
Word of mouth publicity played an important role.

11 Truth & Biggest Tool, Unconventional practices in the party - Internal Lokpal Yes Yes Yes Yes Sustainable
Transpar instituted, Financial Transparency, Political Decriminalization, Political Competitive
ency Decentralization advantage
Internal environment analysis:VRIO
Sr. Resource Description about resource Valuable Rare Difficult Organiza Implication
No name to tion for
imitate support competitive
ness
12 Active Active citizenship - involving citizens & giving them a sense of Yes Yes Yes Yes Sustainable
citizenship responsibility - which was distinct from passive citizenship, competitive
generally followed by other political parties, where they seek advantage,
votes in return for promises to be fulfilled. Non Imitable
- Path
Emphasized on importance & power of each individual to change
Dependency
current state of public affairs, so conceived as ‘By the people, to
the people &for the people’.
13 Unique Social movement to political party formation. Yes Yes Yes Yes Sustainable
marketing competitive
tools Caps from Anna Andolan, low cost high impact marketing tool, advantage,
led to snowballing effect with more people flaunting caps in
Difficult to
public.
imitate -
Auto-rickshaw union support: Posters on rickshaw led to more Physical
visibility. Uniqueness
Frequent protests, movements, accusation by leadership ensured
that party remained in limelight & created distinct identity for
itself in public memory.
 • Campaigning is a highly resource intensive activity. The
key task was to establish & sustain credible dialog with
electorate to “sell” party vision through campaigning in
order to “win” their vote during elections.
• The challenges were substantial time & monetary
Conclusion of commitment as there was no money generating from
operational activities & they were entirely dependent

VRIO on donors for funds.

• Despite several resource constraints & significant odds
analysis against the party, multitude of unknown volunteers,
motivated by party vision & leadership, had worked
day & night.
• Even though the AAP prospects did not seem bright,
the well thought unique campaigning strategies & the
path followed by the leaders, candidates & volunteers
proved to be a great success.
 Performance comparison of major political
parties in Delhi Elections
Vidhan Sabha vs Lok Sabha Election results (No. of seats won)
In the last three years,
political parties, in Lok
52
47
Sabha Elections usually
43 perform according to
their performance in
32
Vidhan Sabha Elections

23
20
15

8 7 7 7
6

0 1 0 0

INC BJP