Fate of GE and Intel a warning to Indian companies against rigid business models 

Conglomerates that diversified and companies that stuck to just the core knitting have equally bitten dust over time. The conclusion is obvious. In an era of accelerated change, business models aren’t cast in stone and need to be reviewed periodically

Sundeep Khanna
May 12, 2023 / 08:36 AM IST
Fate of GE and Intel a warning to Indian companies against rigid business models 

In an era of accelerated change, business models need to be reviewed periodically.

Highlights:  Intel Corp is showing signs of turmoil at a time when semi-conductor firms are poised to cash in on unprecedented growth  Focusing on core competence led to Intel’s downfall even though the company did a lot of right things  In many sectors in India, there is a straight up battle between conglomerates and focused companies  Evidence in support of both conglomerate model and core competence model has been mixed  Videocon’s diversification into unrelated businesses led to its insolvency   ITC’s bid to add diverse...