Bangalore Brand Ppt Ishu Sec B

5/25/2018 Bangalore Brand Ppt Ishu Sec B

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THEBANGALOREBRAND

BUSINESSENVIRONMENT

Submitted To-Prof. Kunwar M il ind Singh

Submi tted by-Ankit Malhotra

Chhaya M ishra

I shu chopra

Shikhar Jaiswal


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ABOUT THE CASE

The case explains the competitive advantage of Bangalore that has helped

it earn the name, the "Silicon Valley of India".

It describes the factors that made Bangalore one of the favouritedestinations for IT&ITES companies in India and abroad.

The case touches on the proactive role played by the state government indeveloping the city as an IT destination.

However, Bangalore has recently been facing stiff competition fromother cities so far as investment from domestic and foreign companies is

concerned.

The case looks into the infrastructural problems Bangalore is facing and the

growth of alternative destinations such as Hyderabad and Chennai. The last

section of the case explains the recent initiatives taken up by the government

of Karnataka to revitalize the Bangalore brand


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The factors that contr ibute to the competi tive advantage of a place

The role of the government in developing and sustaining the competitiveadvantage of a place

The role of infrastructure and civic amenities in making a place anattractive investment destination

The impact of political decisions on business and the relationshipbetween business and politics

FACTORS :


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INTRODUCTION

Referred to as the 'Silicon Valley of India,' Bangalore, the capital of the southernstate of Karnataka, had a population of 5,686,844in 2001, making it India's fifthlargest city

Around 1300 information technology (IT) companies operate in Bangalore and it

is home to around 110,000 technology workers. This is in addition to the 60,000people working in Business Process Outsourcing (BPO) firms.

Bangalore has been reported as the largest job-creating city in India with morethan 65,000 jobs likely to be created in 2004

The Bangalore brand has also been facing stiff competition from upcoming cities likeHyderabadand Chennai, for being projected as the IT hub of India. With the support of

the respective state governments, these cities are being projected as the alternative

destination for new IT ventures

Of the $4 billion IT export revenues from Karnataka in 2003-04, 95 percent came

from Bangalore.


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GROWTH

Bangalore has a legacy of high quality research institutions starting withthe Indian Institute of Science (IISc) built in 1909.

The Government of India's (GoI) decision to locate high-level R&Dcentres in Bangalore laid the foundation for the technological prominenceof the city.

Being the pioneer in India in introducing engineering colleges throughprivate participation, Karnataka has a large pool of technically qualifiedpeople.

In Bangalore alone, 40,000 graduates trained in technology pass out from50 colleges every year.


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GROWTH (CONTINUED..)

In 1985, Texas Instruments became the first MNC to open a centre in Bangalorewith the establishment of its circuit design and development centre.

In 1991, the first Software Technology Park in India came up in Bangalore.

In 1992, Bangalore became the first city in India to set up a satellite earthstation for high-speed communication services to facilitate software exports.

In 1996, the National Association of Software & Service Companies(NASSCOM) came up with a plan intended to help Karnataka overtake theState of California in the US (known as the Silicon Valley), both in terms of

number of software companies and revenue by 2020...


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COMPETITION

Competition to Bangalore has come from cities like Hyderabad, Chennai, Pune,NCR, Kolkata, Jaipur, Chandigarh, Pune, and Kochi, among others. Wipro Ltd.,with 11,000 employees in Bangalore, has been looking for growth beyondBangalore. "Bangalore is a zero-sum game.

In terms of infrastructure, there has not been any material improvement in the lastfive years. As a result, it is becoming difficult to sustain growth here. As perreports, IBM Corp. has been considering Kolkata as the hub for its software andIT services activities in India.


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ANS-1BANGALORES COMPETITIVE

ADVANTAGE AS AN IT DESTINATION

From a mere 13 software firms in 1991-92, the city now has a pool of over1,200 software firms.Working in areas such as computer chip design, systemssoftware and communication software employing over 100,000 IT

professionals.Compared to other locations in India, Bangalore has high-end

technology/industry concentration such as VLSI and telecom services andhigher degree of MNC presence with over 200 foreign firms in operation

Vast base of skilled manpower: Because of the introduction of variousengineering colleges, Karnataka has a large pool of technically qualified

people

. High pace of Growth: The real estate market their favoured the growth ofIT sector.

Appropriate and Advanced Training Institutes Government support policymeasures:

The various assistance, incentives and concessions and exemptions providedto investors.


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FACTORS RESPONSIBLE FOR

COMPETITIVE ADVANTAGE

Bangalore has been fortunate to be rich in the supply of both economic and

non-economic factors that make a place a preferred choice of business

location.

High level of R&D: High quality research institutions starting with the

Indian Institute of science (lISc) built in 1909 laid the foundation for the

technological prominence of the city.

Bangalore has a large, highly skilled IT talent pool available at a relativelylow cost, which it owes to historical development of the citys educational,

research and industrial infrastructure.

Bangalore has been considered an ideal place in terms of climate and

infrastructure to conduct scientific research in sensitive areas like defense andelectronics.


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CONTINUED..

With the establishment of SOFTWARE TECHNOLOGY PARK(STP)

Scheme in 1991 comes the other competitive advantage of the IT sector in

Bangalore:

100% duty free imports

100% foreign equity permitted 100% corporate Income Tax exemption till 2010

Excise duty exemption & reimbursement of Central Sales Tax (CST).

Dedicated Data Communication links

Single window clearance

Custom bonding and export certification.


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ANS-2 HOW BANGALORE SUSTAIN I TS

COMPETI TIVE ADVANTAGE? Presence of call centers and Business Process Outsourcing (BPO)

companies make it a diverse hub.

Through its IT-orientation, the city has also been able to attract a

reasonable number of companies into database management/development,data processing/management and engineering, design, and GIS services

.

Bangalores major edge is its Human Resource Bank. The State has

begun to actively address and remove bottleneck in this area to sustain its

competitive advantage.

Bangalore has multitude of Arts, Science, Commerce, Engineering, Law,

Medical and Nursing colleges as well as high quality training institutions.

There are over one million educated housewives in the State of Karnataka

who are an important source of manpower for BPO companies.


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ROLE PLAYED BY TELECOM IN

SUSTAINING BANGALORES COMPETITIVE

EDGE Bangalore offers a truly wide choice of players in telecom.

The entire state is networked via Optic Fibre Cables (OFC) by the State - run BSNL(formerly DOT) as well as the private companies like Bharthi, Reliance, VSNL andTATA Tele Services.

The new private companies, Bharthi and Reliance, provide the Last Mile Access directlyto the customer, in all major cities in Karnataka.

VSNL has substantial redundancy in International Bandwidth circuits.

Bangalore offers excellent International Bandwidth via Satellite.

The STPI at Bangalore presently has more than 1050 IT companies as its customersproviding them Individual Satellite Connectivity.

Bangalore STPI accounts for 45% of the total STPI revenues in India.


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ROLE PLAYED BY GOVERNMENT IN

SUSTAINING BANGALORES COMPETITIVE

EDGE IT industry was exempted from payment of purchase tax on computer

hardware, computer peripherals & other capital goods for a period of 5years.

IT industry was given priority in the sanctioning & servicing of power & wasalso exempted from power cuts.

In case of Mega projects, a package of concessions relevant to the needs of thecompany were offered in addition to the prevailing tax incentives.

The BATF initiated at making Bangalore a world class city & makingBangalore financially self reliant.

The BPO companies are exempted from the payment of 50% Stamp Duty &Registration charges on execution of Lease, lease-cum-sale or Sale deedsfor theestablishment of their venture.


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OTHER MAJOR FACTORS

KBITS: The Department of IT has set up Karnataka Biotechnology & Information

Technology Services.

It helps to identify quality man power resources, as well as resolves theproblems, if any, of BPO companies with any other Government Departments.

A High-powered Cell will be constituted in KBITS which will promoteinvestment of BPO companies .

It will provide specific information to companies based on their specific needs.This Market friendly cell will participate in various National & Internationalconferences to provide such information.


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FACTORS LEADING TO DOWNFALL OF

BANGALORES COMPETITIVE EDGE The citys infrastructure, especially power and telecom, have not kept pace with

IT expansion.

While the government promises uninterrupted power supply, the reality is far

removed, and many ITES firms maintain their own back-up systems. Thiscranks up costs.

The citys public transport infrastructure is also weak and this has resulted in

many people buying their own vehicles, thus overburdening the roads.

New government policy to increase sales tax rate from 5.3%-13.5%.

Efficient employees were being transferred out of Bangalore by new

government.


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QUESTION: 3..

Bangalore has not yet lost its edge, however, if the situation deteriorates,

it could lose business to smaller towns and cities, where lower population

levels provide more room for growth. What should be done to sustainBangalore's competitive advantage in the future?


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STATE GOVERNMENT POLICIES

Ans-3 What Should Be Done To Sustain

Bangalores Competitive Advantage In The Future

Competition to Bangalore has come from cities like Hyderabad, Chennai, Pune,

NCR, Kolkata, Jaipur, Chandigarh, and Kochi among others. To sustain its

competitive advantage in future, Bangalore should focus and try to improve on

following points: Development of Infrastructure: Bangalore is trying to improve its

infrastructure and has undertaken MASSIVE INFRASTRUCTURE

EXPANSION PROGRAMME in which some of the major projects on the

fast track of implementation are :

Bangalore International Airport at Devanahalli. Bangalore Mysore Expressway.

Bangalore Mass Rapid Transit system.

Upgradation of Minor Airports


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CONTINUED.

Upgradation of existing roads and laying of new ones on BOT/BOOT

basis.

Special Economic Zone at Hassan.

Creation of Employment Opportunities: There are about 4000 IT software andservices firms in India. More than 1 million IT professionals / personnel are

engaged in the IT software sector. According to data available, the total number

of IT companies in Bangalore during 2004-05 was 1200, and 1,15,000

professionals were on the roll.


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OTHERS....

Procedure for seeking clearence

Approval time

Real estate market

Development of satellite township

Establish R&D institutions Hotel accomodation

Venture capital fund

Upgrade the range of amenities

Mega project

IT parks

Software professionals

Exemption


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REFERENCE

www.BANGALOREIT.COM

www.BUSINESSGYAN.COM
http://www.bangaloreit.com/http://www.bangaloreit.com/


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THANK YOU

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Bangalore Brand Ppt Ishu Sec B