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Growth gathers momentum

India accounts for about one per cent of Brazil’s import bill. Yet, it is not all depressing because trade between the two countries doubled in just four years between 1998 and 2002. These figures show the unfulfilled potential between the two countries.

Some industries where India can significantly step up exports to Brazil are tea spices, chemicals, pharmaceuticals, fertilizers, textiles and engineering goods.

As Brazilian growth gathers momentum, India can meet Brazil’s increasing need of capital and engineering goods at prices that are much more competitive than North America.

In the WTO era, Brazil offers many exciting opportunities to Indian businessmen hunting for global markets.

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Increasingly price sensitive market

However, the past few years have seen the major brands

slashing their prices in a big way to be able to compete in

an increasingly price sensitive market. The basic

technology used is not very different, since all these

players churn out similar configuration products.
Moreover manufacturing is being outsourced extensively

from third world countries and so are components. A

popular anecdote in the PC world goes thus: “PC

manufacturing units in China have one entry and many

different exits – Exit 1 for IBM, 2 for Compaq, 3 for Dell

and so on!

 

” Indeed in case of the basic PC, technology

ceases to be the differentiator today. But the service

back up provided is definitely a critical indicator of

competitiveness, or the lack of it. Here, branded PCs

score heavily over their unbranded counterparts.

The

market share of assembled PCs went down from 55 % in

the third quarter 2004 to 43% by the end of 2004,

primarily owing to major price drops by organised

players. Overall PC sales grew 29% by the end of March,

2005 touching 3.6 million.

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Where it hurts the most

Interestingly, in the month of May 2005, while Star Plus

enjoyed a massive prime time viewership of 71.4% from

Mondays to Thursdays, this viewership got devastated on

weekends and fell to 36.6%.
But the deepest cut for Star

came from the fact that the combined viewership of Sony

and Zee TV – another domestic cable channel – rose from

26% (between Mondays to Thursdays) to a whopping

53.3% on weekends. The maximum ad revenues are

earned during the weekends, and this gain by Sony and

Zee has hit Star where it hurts the most.

In a desperate move to fight this weekend eyeball battle,

Star Networks has turned back to its white knight and

launched a weekend prime time sequel to KBC titled

KBC 2 on Star Plus.

But can one show make a leader out of a channel?

However confident Star might be feeling, the answer is a

distinct yes. But not just for Star, even for Sony, and Zee.

If it was KBC that moved Star to heights, Indian Idol

almost did it for Sony. And with Sony now bombarding

the Indian viewers with more captivating programs, Star

Networks is perhaps pinning too many hopes on old wine

in a new bottle!

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