Updated: Sep 18, 2019
(Jitesh Manwani is a business coach and consultant based in Indore. Also in his long span of career, Jitesh has been a Corporate Trainer, Motivation Speaker, Keynote Speaker, Leadership Management Consultant, Life Coach and also a Career Coach in Indore)
Do you know the difference between Mukesh Ambani and Anil Ambani’s business style?
There is a lot of learning from the story of Mukesh Ambani and Anil Ambani who are known as the business tycoons of India. Their story is a true example that shows how vision and practical ideas help to achieve big in business. They created a history in the Indian Industry that would serve as an inspiration for our future generation.
Coming to their story, in 2005 Mukesh Ambani took the charge of reliance refineries and Infocomm and Anil Ambani was focusing on reliance capital as he was good in finance, suddenly after the death of Dhirubhai Ambani there was no proper legal document of their will and after some time his mother distributed their property among the children. After settlement, they got separate business entities in which Mukesh Ambani the eldest son got refinery, petrochemicals and, exploration while Anil Ambani his young brother got capital, Infocomm and R&R and energy. Mukesh Ambani got a core and set business like refinery, Anil Ambani got twenty- five thousand crores cash and Infocomm. Both of them almost got the same amount and equal share of the property. Now in 2019, when we compare the net worth of the 2 brothers, there is a difference of 41 billion dollars.
We could only see 2 major reasons for the difference:
Mukesh Ambani’s core competency was refinery and telecom. He focused on the same and worked hard with a proper vision and planning. Anil Ambani’s core competency was capital and he diversified his business and entered into many sectors. Anil Ambani focused on achieving faster growth and even entered the defense sector in the making of defense equipment in which he had no major experience. Mukesh Ambani was not allowed to enter telecom from 2005 till 2010 and as soon as he entered he started planning for Reliance JIO which was launched in 2017-18. Mukesh Ambani had a 10-year vision in his mind and thought data will be the future.He was a long term player and invested and focused on very few sectors. Anil Ambani invested in power, metro, entertainment and even in politics.
From the above point, it is clear that the success of any business depends on understanding the future market and working hard to achieve your goal. There may be many business opportunities but choosing the right opportunity is very important. You can click the below link to find a million-dollar business idea. https://www.jiteshmanwani.com/post/technique-to-find-million-dollar-business-idea
Mukesh Ambani who always keeps his eye open for new ventures also thought that crude is not a value- adding business as its margin will always be less. Crude prices are not in control and are always governed by the international market. He has invested 34 billion dollars in Jio, which was not dependent on any other factors. He had full rights on his product and had powers to decide the tariff. He had right to offer free connection for his customers.During their launch,they provided 3 months of unlimited free calls,4GB of free data and free SMS which attracted many customers. Flexibility and authority were both in his hands. They also used the largest fiber-optic network which helped to provide speedy data.
His only challenge was to win the heart of many investors for such a huge investment. He was also a champion in convincing the investors and they also had confidence in his plan and vision. Mukesh Ambani always focused on a plan first and later went to the investors to invest money into his business. With his vision, he created a digital revolution through the use of technology and innovation.
Convincing people is art. It is very hard to convince people and make them invest in our business or buy your products. The best way to convince people is explained in the below link https://www.jiteshmanwani.com/post/best-convincing-technique
Mukesh Ambani always believed in better quality for reasonable prices, called value innovation and Jio was a huge success in its first year of launch. Mukesh Ambani who always had big dreams and followed his instincts always believed to win the heart of customers rather than earning profits and he also had a well -planned strategy to earn profits. He followed his father’s path of taking bold decisions and at the same time being calculative. Returns were important but that should not be the only motto. Earning goodwill will end up in bringing profits to the business. The success of Jio is evident in his mission and vision
To know the success story of Reliance Jio Click on the below link
1. Find your strength and play big on them
Not only in business, but it is also very important to identify your strength and work on it to prosper in any field you choose. If you are good at communication, then you could be a good corporate trainer and if you are good at convincing people, then marketing is your correct profession.
In this case study, the strength of Mukesh Ambani is- he had a clear vision and was a long term player. He started planning towards his future vision and gained big.
Another good example is the success story of Mr.Narayana Murthy, co-founder of Infosys; his main strength was his knowledge in the field of technology. He worked on his knowledge and started Infosys. His contribution to the IT sector was outstanding.
2. Choose a business where you have a free hand
Another important learning is not to rely on any business which depends on core products where there are fewer margins and have speculative prices as you lose control of your business.
You can be more innovative if you have a free hand on your business. If your business is into crude or gold, the price depends on the international market which always fluctuates and you can’t reduce or increase the price basing on demand but you have to rely on external factors. One of the reasons for Jet Airways’ failure was the fluctuations in crude prices.
With the growing technology, there are many business opportunities. If you want to know a few start-up ideas which will help to sustain in the market, click the below link
3. Focus of Value Innovation
Value innovation means to give the best to the customers in terms of both products and cost. This process involves the implementation of new technology that helps in creating a unique product and eliminating unnecessary costs. This helps to offer better products at low cost. This process is beneficial to both customers and company. It is the best way to create a better place for your product in the market. This concept focuses on reducing unnecessary costs and thereby raising buyer value.
The Japanese company Canon also focused on value innovation by shifting the target customers from corporate to individual users. The main target of the Copier industry was from corporate who wanted large and durable machines for their office use but they created a new market to individual users with small and desktop copier machines which created a new market and helped in its success. Click on the below link to know more about value innovation
4. Attract people first then make profits
Attracting customers is more important than anything else in the world. You should also have a strategy of how to make profits in your business. Jio was able to gain profits during the first year of its launch with its USP. The offers and the marketing strategy which they followed was exceptional.
One more example which made profits during the first few years of its launch was FOGG. The brand which was started by Mr.Darshan Patel attracted the customers; they liked the idea of no gas deodorant and were ready to pay more for his product. The Same mantra of attracting customers helped in his business success.
It is very important to understand the needs of customers in order to implement in your business and make profits. If you are able to address the customer needs and work on them, you will definitely be the business leader.
As an entrepreneur, you should always value customer’s needs but don’t rely on them or wait for the customer’s feedback to improve your business. Do you want to know the reason behind the above statement? Click on the below link to know why you should not listen to your customers
From the story of Ambani, it is very evident that life is full of challenges and it is never a cakewalk. Running a business is tough and running a huge family business is much tougher.
We always have to work hard and our dreams will come true only if we are passionate about achieving them. Always think different and think fast, this will help to build a lot of connectivity with people who would like to join your business and work with you.