Hey Today we have talking about very different topic. There are two types of companies get in consideration first is Product based companies and second is Service based company. These both company types are very important. In this article we are talking about type first company. We are going to mine every important things about it. Read this full article to get best knowledge about today’s topic.
What are Product based companies?
Basically product based companies are the companies type which earn money by selling their owned product. The main source of income of this type of companies is selling product.
For example – Approximately before 2 dozens of year ago internet was rude. Internet users were trouble to find data on internet. To making easy to find data on internet Google established by Page. They arrange all websites on internet by it’s popularity. To making data searchable Google launched their search engine. As Google’s search engine is the product of Google company.
For one more example – Now a days there are Ola and Uber company which provides you taxies. There are taxies available also some years ago. But there is no interaction between people and taxies. To solve this problem the above companies established.
You pay directly cash or online money to companies like Uber and Ola. But how do you pay to Google for using their services? You pay them as advertising. Many people give payment to Google to promote their business. Google promote those business by showing ads on our websites by using Google AdSense. By this way Google and we both are earning.
Once move your eyes surrounding you. There are many products surrounding your like Refrigerator, Television and so on. These all type products are the product of product based company. For example – The product of Apple is iPhone, the product of Godrej is cupboard and the product of Pepsi is drinks.
As you know these types of companies do not make their products for specific people. I mean the companies do not make special products for particular person. You have to buy product which are available in markets only.
For example – If you want special refrigerator which has more part of freezer and less part of normal freeze, it is not available in market. You have to buy refrigerator as per availability.
If you are wishing to get special car like modified car. Company won’t modify a car for only you. You have to buy the car as per the pieces available in market.
There this is cleared that companies has not directly interaction with public. Company do it’s research and design the product which is on maximum public high demand.
Is it good to work in Product based company?
There are many myths in market. Many people says that “doing work in product based company is very good, work environment is too good, pressure of work is less and salary will be too high”. Some of them myths may be correct but not all.
Let talk in deep about it. First of all keep this in mind this is like a normal company. Here you do work, in return of your work, they pay you a salary. Obvious thing company is earning more high amount from your salary, therefore it is surviving in market.
Do they really pay good amount?
– We can’t say directly like that. But yes it pay you good salary. Actually it depends on popularity of the product.
Suppose you have a company. You employees started to make a new product. You are spending money to make that product. Now your product is ready and you launched it in market. Your product has became successful. Now you don’t need to invent it again. I am trying to tell you there is one time investment.
For Example – Let get the example of What’s App company. What’s App has on and average 30 to 35 people’s team. These 35 people made a chat up. Consider this chat up did not get success. Only 100 to 150 people used it. The developers have done some development efforts. They have spend money to develop it.
Now think inverse. Suppose What’s App got success. 100 crores people are using What’s App now. Due to large number of users the earning is also large. Now they don’t have to do any changes for each and every person. People are using What’s App as it is. This is like one time investment.
Once you made a product and it got success in market. You don’t need to invent it again because you have the key to make it. It means you don’t need to spend money again. There are only some maintenance cost you have to pay.
If the product of company is high then the earning of the company is also high. Therefore the company will also pay the good salary to it’s employee.
Advantages of Product based companies
- Product based company can pay good salary to their employees. If the flexibility of company is more, they will give you more services too.
- The whole employees team works on single agenda because there are not different customers. Employees keep their full concentrating on improvement the quality of the product.
- You will get more satisfaction from it. Because all your employees are working on a single agenda.
- Employees also get some stocks of the company. It means company give you shares with salary. From this shares you can earn more money for yourself.
- The interaction with customers is too less therefore you don’t have headache. This is good for the people who have to spend their full time to complete the given work.
- Working time is flexible. There is no time limitation to complete the work.
Some losses of Product based companies
- According to competition there are high chances to fall the company anytime. Nokia was world leader company, but due to competition it fall down and outed from market.
- If the company fall down, shares will also be down. You will loss your job also. This is not safe to do job in product based companies.
- If you are thinking to open your business while working in the company, you don’t get more knowledge about business because of less interaction with clients. You will forget you communication skill too.
- If you fail to give the best service to company, they will kick you from the job. Because company do not compromise on the quality of their product.
Is it good to start a Product based company?
We can not say it directly. We need to think about it. As you know how What’s App got success. As like What’s App this is not mandatory that your chatting app also will be success. There were many apps in the competition with What’s App. What’s App is ahead from them because it’s developers have put some special in it.
What does it mean? If you are looking to start a new company, you need to have some special thing. Because there are already many companies on your category.
Some important Product based companies
Here are some important product based companies list. I haven’t arranged them by global ranking of them.
John Warnock and Charles Geschke have founded the company Adobe in garage in December 1982. Adobe company make the multimedia and software porducts.
Products – Adobe Flash web software ecosystem, Photoshop image editing software, Adobe Illustrator vector graphics editor, Acrobat Reader, the Portable Document Format (PDF)
CEO – Shantanu Narayen
Employees – 21,000
Revenue – $11.17 billion
Jeff Bezos founded Amazon in July 1994, in Washington, USA.
Products – World’s no. 1 e-commerce with Cloud computing, and AI-based products, including Amazon Alexa, Amazon Fire TV, Amazon Kindle, etc.
CEO – Jeff Bezos
Employees – 5,75,700
Revenue – $386.064 billion
Website – amazon.com
5 more people with Mark Zuckerberg has found Facebook in 2004.
Products – Facebook, Instagram, Messenger, WhatsApp, Watch, Portal, Oculus, Calibra, Giphy, Messenger, Watch, and Portal.
CEO – Mark Zuckerberg
Employees – 52,534
Revenue – $85.97 billion
Larry Page and Sergey Brin has started the Google in 1996. They have invent the import thing Pagerank.
Products – Search engine, cloud computing, software, and hardware. Some of the top products are Google Search, Google Docs, Google Sheets, Google Slides, Gmail, Google Calendar, Google Drive, Duo, Hangouts, Google Translate, Google Maps, Waze, Google Earth, Street View, YouTube, Google Keep, Google Photos, Google Chrome Chrome OS, Google Pixel, Google Home Google wifi, Google Daydream, Google Fiber, Google Fi, Google Station and so on.
CEO – Sundar Pichai
Employees – 135,301
Revenue – $66 billion
Website – google.com
5. Hewlett-Packard (HP)
Hewlett and Packard started a part time job in rented garage in 1938. They decided to give it the name Hewlett-Packard 1939. They launched it in 1957.
Products – HP launched products like printers, digital cameras, scanners, calculators, Personal Digital Assistants, servers, workstation computers, home computers, and computers for small businesses. HP also developed software as a service, cloud computing solutions, and Software services, including consulting, education, professional services, and support.
CEO – Enrique Lores
Employees – 55,000
Revenue – $56.64 billion
6. International Business Machines Corporation (IBM)
Products – Computer hardware, software, and middleware. It also provides consulting services and hosting services in areas ranging from mainframe computers to nanotechnology.
CEO – Arvind Krishna
Employees – 352,600
Revenue – $77.14 billion
Intel was founded in 1968 by Arthur Rock, along with Gordon E. Moore and Robert Noyce.
Products – SRAM and DRAM, semiconductor chipsets, motherboard chipsets, network interface controllers, integrated circuits, flash memory, graphics chips, embedded processors, and other devices used for communication and computing.
CEO – Bob Swan
Employees – 110,800
Revenue – $77.87 billion
Bill Henry Gates and Paul Allen founded Microsoft in 1975.
Products – IntruShield, McAfee Change Control, McAfee DAT Reputation, McAfee E-Business Server, McAfee Entercept, McAfee SiteAdvisor, McAfee VirusScan
CEO – Satya Nadella
Employees – 163,000
Revenue – $143 billion
PayPal established in December 1998 as Confinity to develop security software for handheld devices.
Products – Online money transfers through Paypal.com
CEO – Dan Schulman
Employees – 21,800
Revenue – $17.772 billion
Website – paypal.com
10. Rockstar Games
Rockstar Games, Inc is the American company and was founded in December 1998. Rockstar Games open the branch Rockstar India in India on 2016 in Banglore.
Products – Some of the popular games are:
GTA 2 – The Movie, The Football Factory,
Grand Theft Auto: San Andreas, Sunday Driver, Red Dead Redemption: The Man from Blackwater
CEO – Sam Houser
Employees – 2537
Revenue – $6 billion