Nimbuzz – Shining in the VOIP market

A growth of a company primary depends on two things: i) the value of the company which it creates and maintains from its existence ii) the strategies it implements based on the market trend. Every company has to frame these things before start expanding from small to medium size range. Today, we are going to discuss about a growing company and its strategies which has transformed it into an emerging company.

Nimbuzz is a Netherland based mobile IM (Instant Messaging) startup, established in 2006 by Evert Jaap and Martin Smink. It entered the VOIP (Voice over Internet Protocol) Industry in 2007 by launching the mobile app with combined features of IM and VOIP. Nimbuzz offers mobile to mobile chat, mobile to computer chat, group chat, voice & video calling, along with paid voice call. The app supports all mobile operating system and is available in 10 most popular international languages including, English, Hindi, Russian, etc. The revenue of Nimbuzz comes from Nimbuzz out (paid voice call service), sales of N-world and advertisements in the app. It has currently over 150 million users in 200 countries, grown three-fold from 50 million users in 2011. It has more users than BBM service.

 

Nimbuzz has strong presence all over the world since it can support more than 500 mobile devices. Nimbuzz has 78 million users in Asia and India constitutes 25 million in it. The growth of Nimbuzz comes from South Asia, Middle East, Africa and countries like Indonesia, United States of America and Russia.

The following are the strategies which turned Nimbuzz hold it tight to grow beyond the boundaries:

1. Focus on core need: Nimbuzz is very focused on one need which its going to deliver its user i.e. communication. The mobile app should be faster in operation and in communication, which is the core requirement of a VOIP app. Nimbuzz is planning to takeover SMS market in India (source: business world).
   
2. Synchronizing with new technology: It firmly understood the need of updating the system with new technology and adapted regularly. Even though the landscape of technology changes rapidly, Nimbuzz cross platform IM and interaction with other messaging services like FB chat, Google hangout, etc. has strong hold in smart phone, tablets, mini tablets and personal computer. Nimbuzz can also support all the operating systems such as iOS, Blackberry, Android, Java, Symbian and Windows. (Note: Cross platform IM is a technology which also users to chat with other irrespective of the gadgets)
3. Collaboration: Nimbuzz believe on collaboration over compete in this market. It has tie up with many telecommunication companies for technological support. These telcos bring their core competence in technology and advancement to Nimbuzz to enhance its business. Even these telcos can launch their mobile IM app however it will create only a marginal value in the market. Hence, according to Mr. Vikas Saxena – CEO of Nimbuzz, the companies should find win-win situation by finding newer business models between telcos and service providers (like Nimbuzz) through collaboration.
4. Strengthen its Indian office: After sensing the growing mobile market in India, especially smart phone market, Nimbuzz has shifted 30% of its man power to Indian office from Rotterdam, Netherland. Additionally, the head office has also transferred product management and device engineering to India, but the technology remains with Rotterdam. 
5. Addition of new business/services frequently: Apart from these, Nimbuzz always hungry to launch new business. Recently it has launched gamming and eventually planning to launch game based revenue such as group gaming and advertisement while playing games.

Mr. Vikas Saxena joined as CEO of Nimbuzz in August 2012 and known for his build-up and operation of 3G nationwide network in Aircel (India’s first private sector network). He is also responsible for setting up a mobile business in ibibo.com.

Nimbuzz approaches the market with deep insight about the technology and by innovation. Hence its growth will be challenge to its competitors like Fring and other chat services. After the entrance of new CEO, we can expect more features from Nimbuzz in the future.

How Maruti stayed close with its customers even in dull market scenario? - Vehicle Service Strategy

– Now wait only 90 mins to get your Maruti car serviced

Indian automobile industry didn’t perform well in 2012-13 due to fuel price increase, high inflation and decrease in supply due to strikes in Maruti Gurgaon and Hyundai Chennai plants. Except fuel price increase, other factors are not common and hence the industry entered into a dark phase where it sales was low for five continuously quarters till Jun-Sep 2013. However, even in the difficult situation, India’s largest car manufacturer Maruti stay connected with its customers by implementing Vehicle Service Strategy.

Maruti has started to forecast a revenue opportunity in automotive serving and immediately strengthen its service quality and expanded the network. Currently, it has 2,971 service centers which include 1,460 dealer workshops and 1,511 Maruti authorized service stations. In India, automotive serving is largely unorganized and authorized service centers are preferred only up to second or third year after the purchase. In 2012 only 69% of owners have taken 3-4 times AS services from authorized dealer, which decreased from 91% in 2011. Besides, there was decline in number of customers opting for extended warranty.

Maruti has understood the needs of customers after optimal period and executed the vehicle service strategy in two pillars:

Expanding the coverage of service network

1. Maruti divided its current servicing network into five zones to maintain the standards. For instance, Bangalore and Chennai will come under south zone.
2. Further these zones are divided into areas to enable easy communication between service centers and avoid out-of-stock situation in spare parts.
3. It also explored new locations in the various areas for expanding its network.

Technology enhancement in service centers  to cut down the servicing time

1. Maruti has introduced series of steps in the last 3 years to reinforce the technology based in service centers. Most of the innovative ideas are tested in four operational Maruti Service Master Outfits in Delhi, before implementing.
2. Tablet for advisors: The executives in service centers, who interactive with custome and understand the problem in the vehicle, were provided with tablets to assist the customers quickly. Using the tablets, the executives can retrieve the service history of the car by searching with the car registration number. So the enrolling procedure will take only 3 minutes, compare to 15 minutes in earlier procedure. 
3. Express service bay: Maruti has advised the dealers to setup the advance bay in service centers to reduce the serving time per car. (Its investment is Rs. 2.5 lakh). The express service bay will have separate tool trolley and new oil management system which allows the technician to complete the overhauling and repairing in lesser time. Also the technicians are selected for this job, through a tie-up from Industrial Training Institute (ITI), with higher skills to service the car.
4. Investment in Car washers: They encourage the dealers to go for automatic car washers (investment need: Rs. 7 lakh) which further reduces the time from 10-12 minutes under manual wash. Maruti also pushing its dealers to go for dry wash system in water scarce regions.

Results

1. With the help of 1,318 express bays in 877 workshops, Maruti is handling 11,862 vehicles per day. 
2. It has reduced the labor time by 15% with new infrastructures and also controlled the labor attrition ate, which normally will be 10-15%. 
3. The service network of Maruti Suzuki has grown 5% in 2012-13 and it serviced over 17 million cars including the accident cars in the same year. 
4. The service volume is expected to increase 8% and 20% in 2013 and 2014 respectively which implies the starting of investment pay back.

Hence, now Maruti can not only supply price competitive vehicle but can also provide time competitive after sales service.