Strategy
Momentum = Mass X Velocity
I t is not just a formula in physics. It has great business sense! Every business wants to grow and
therefore businesses need to know where they exist; which will increase the growth momentum.
Meaning of “Mass”, here, is “how much big the business is”. “Velocity” defines the aggressiveness with
which business implements the growth plan/strategy. At least one of these two should be significant
enough to reach commendable growth momentum. Of course, combina on of both will be most desired.
ITC in last AGM announced few facts:
Gross revenue crossed INR 55,000 crore and PBT surpassed INR 15,000 crore.
Non-cigare e segments, compared to 1996, grew 18 mes sharing 58% of net segment revenue.
Since 1996, Market Capitaliza on has grown 72 mes and touched INR 4,00,000 Crore.
ITC is big enough to create wealth for shareholders. Velocity is less. In the past it has undertaken some
sustainable strategies such as launch of e-choupalfor connec ng farmers to markets and helping in real
price discovery.
Another example of less mass but high velocity is “Patanjali”. The velocity with which it started
manufacturing and adver sing the different products under same brand name. Today patanjali brand is
known everywhere and preferred too.
There are many other examples which created wealth in a very short span of me; Amazon.com,
Flipkart, Snapdeal, Paytm, Ola, Uber to name a few. These were very small ini ally but suddenly acquired
velocity to achieve huge growth momentum.
www.Venture-Care.com/Magazine
October 2017
27