Strategic tools for the practising manager

THIS WEEK: THE INDIAN LUGGAGE AND ACCESSORIES MARKET

The Indian luggage and accessories market currently stands at Rs 2,972 crore and is projected to reach Rs 5,076 crore by 2011.

The luggage market in India comprises accessories, school bags, ladies' bags, beauty cases, shoulder bags, sets, backpacks/duffels, travel bags, and business cases. "Accessories" constitute toilet kits, handbags, locks, luggage tags, straps, travelling pillows, camera covers, wallets, passport covers and belts.

Eighty-five per cent of the luggage market is from the top 784 towns; further, 80 per cent of this market is from the top 145 towns.

The share of organised luggage retail is expected to increase from 20 to 44 per cent in the next five years.

The share of suitcases in the product category mix is expected to reduce from 30 per cent in 2006 to 25 per cent in 2011, while the share of ladies' bags should increase from 18 per cent in 2006 to 23 per cent in 2011.

Exclusive brand outlets are the most successful luggage retail format in India.

Within accessories, the highest selling items are wallets (90 per cent) and belts (92 per cent).

Selections from management journals
NUGGETS

Senior executives have long been frustrated by the disconnection between the plans and strategies they devise and the actual behaviour of the managers throughout the company.

This article approaches the problem from the ground up, recognising that every time a manager allocates resources, that decision moves the company either into or out of alignment with its announced strategy.

Top managers must know the track record of the people who are making resource allocation proposals; recognise the strategic issues at stake; reach down to operational managers to work across division lines; and create a new context that allows top executives to circumvent the regular resource allocation process when necessary.

How managers' everyday decisions create "" or destroy "" your company's strategy

Joseph L Bower and Clark G Gilbert
Harvard Business Review, February 2007 Issue
Subscribe to this article at www.hbr.com

The sports world went into overdrive this month when it was announced that soccer star David Beckham had signed a landmark five-year sports contract worth an estimated $250 million to play soccer with the Los Angeles Galaxy.

But what many Wharton sports and marketing experts are wondering is whether Beckham can live up to the hype surrounding the deal and produce enough star power to not only boost the team's revenue, but also raise the profile of Major League Soccer in the US. Will Beckham's star power decline if he doesn't play well in the United States?

Brand it like Beckham: Can the soccer star sustain the hype?

Knowledge@Wharton,
Jan 24 - Feb 06
Read this article at http://knowledge.wharton.upenn.edu/

10 business bestsellers
BOOKWORM

The World is Flat
Author: Thomas L Friedman
Publisher: Penguin Books
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The Starbucks Experience
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The Undercover Economist
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Freakonomics
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Jack: Straight From the Gut
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The Greatness Guide
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The High Performance Entrepreneur
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Blue Ocean Strategy
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Publisher: Harvard Business School
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Winning
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The Speed of Trust
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