Andy Grove of Intel in his book speaks of the "Inflection Point" , Inflection Point is a point in time , when a company realises that it could no more survive profitably doing what it previously did and has to start thinking out of the box . And for "Intel" this realisation came very late , when it had already lost significant market share to cheaper and better Japanses products.
But there are companies , which have the forsight and vision to see this "Inflection Point" coming their way decades before it has actually arrived, one such company in India is ITC
ITC , as the name suggest "India Tobacco Company" started off as a one product company , it was all about cigarettes , they were , are and will be the indisputable leaders in this additive category .
But the management had/has vision , they saw problems coming from multiple directions , higher taxation , increasingly health conscious public , tighter government policy on smoking and started diversifying and today has a product portfolio that is staggering and awe inspiring.
Similarly 2010 was a year of "Inflection Point" for the Mutual Fund Industry , when the SEBI removed the entry load , which was used to pay the MF agents , thus forcing the agents and industry to thing of more creative and innovative ways to do business .
2012 would be a year to watch out for, with DTC ( Direct Tax Code ), it could be a "Inflection Point" for individual investors.
It is said in times of great uncertainty , wealth is transfered from the unprepared to the prepared . So use 2011 to prepare for the "Inflection Point" that awaits you in 2012
Image : FreeDigitalPhotos.net,Photographer: jscreationzs
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