Me and my partner Samarjeet regularly discuss this...
I guess, upto a point it is diversification and beyond that it sounds like pure opportunism. It's like saying hey I have the money, I can win in anything. Are the rest of the players fools then, to loose to your 5% attention on 20 different businesses? ;-)
Point is, we feel business is not won because of the 20,000 employees working for you, but the top 4-5 main guys working for you and if you are doing too many things then the attention of the people who matter will be so much. So to counter it what do these ppl do? They buy people who matter. Problem with this is it is then they who run the company. Your value-add is limited. So if they are as good as you then all is fine. But if they were as good then in a capitalistic system, prey why are they not doing it themselves?
There's a difference ain't it? Between the Ambanis and these top people they buy? That's the point... :-) Saturday, June 30, 2007