India Lacks Quality Market Research Firms: NR Narayan Murthy; The Lacunae for Indian Unicorns To Thrive
Murthy has stated that one of the loopholes in India is that India lacks a company that is specialised in quality market research.
NR Narayana, the co-founder of Infosys has recently stated that India lacks quality market research teams. The shortage has caused an overestimation of the opportunities by unicorn companies. As a result, the latter has eventually reported huge losses.
Murthy has added that one of the loopholes in India is that at this point, India lacks a company that specialised in quality market research.
It has eventually resulted in the entrepreneurs that have established unicorns overestimating the opportunities present in the market and the investments made in venture capital funds.
The lack of market research firms implies that the companies spend much more than their limit and then are faced with reverses in their businesses.
Narayan Murthy has brought shortcomings to the limelight through an event organized by Symbiosis International.
He has stated that the reality is shown at the end of the year. The revenue of the companies has not yet increased but their spending has gone up drastically. As a result, the companies incur huge losses.
Murthy has stated the point while highlighting the importance of market research during an interaction with the students. In addition, he has shared his example where he had to shut down his first company Softronics. The latter was founded in the 1970s in Pune and had come to an end because of the lack of market research.
He has asserted that it is integral for companies to earn the respect of all people. It is because if the company becomes successful, it will receive support from all the stakeholders.
He has mentioned that if one’s company becomes successful, it will eventually gain the support of the government and will not fall prey to any corruption. The company will not have to go through any unethical means.
Murthy has added that competence and values are integral qualities that one should seek while hiring leaders, citing that he had not been successful in hiring the right candidates for the top leadership roles outside Infosys.
He has asserted that it is essential for all employees to perform in such a way that they can achieve greater heights.
If one wants to make India have an exceptionally strong economic performance, every Indian should emphasize working very hard, showing discipline, acting fast, and simply saying ‘Mera Bharat Mahan’ are empty words that will not bring any change.
The only way poverty and lack of respect can be overcome in a country that is located ‘south’ is by performing.
He has asked the students to be honest, seek justice for themselves and others, perform anything that raises the respect of India, and at last, be good citizens.
Murthy has even asserted that he has not found any educational institution in India that does not emphasize rote learning. It is integral to inculcate critical thinking from an early age.
Lastly, he ended his speech by mentioning that the class would not learn anything as long as the teachers start continuing with the monologues.
Market Research: A Tool for Unicorns to Thrive:
Market research plays a significant role in any business organization. In organizations, the data related to a company and target audience is collected and evaluated to achieve businesses’ greater growth by providing detailed information about the customers.
In addition, such market research firms provide information about the competitors, suppliers, and other factors in the market and dynamics that can be taken into account.
The process is intricate, and thus various organizations hire market research firms to conduct such activities.
The major reason for the failure of unicorns is-
Overvaluation: One of the significant difficulties faced by unicorns in the later stages is overvaluation in the initial stages. There should be reasonable assumptions of the growth rate a company can achieve. If that is not the case, the entire growth operation can shift into a large-scale operational disaster.
In 2018, around 105 startup companies have been shifted to the title of unicorns. However, in 2022, the number has drastically been reduced to 84. It is the segment where market research becomes essential for the unicorns. With about 50 percent of new businesses failing during the first five years, it has become crucial for them to develop a deeper understanding of the customer base to thrive. Market research serves as a tool in a startup’s business planning process as the latter evolves.
Dr. Elaine Young, a professor at Champlain College online has stated that without market research, a company is solely making guesses. Listening to one’s prospective customers will help him align the product or services and marketing messages to address the needs of the customers.
edited and proofread by nikita sharma
