Hey, today we are going to talk about Product Based Companies. There are two types of companies that get into consideration, the first is Product based and the second is Service Based companies. Both company types are important. In this article, we will discuss everything about the Product based company like its definition, working nature, how you can join, its example, etc.
Both company types are different in nature. Let’s see how Google was established as a Product Based company? Approximately 2 dozen years ago the internet was rude. Internet users were having trouble finding data on the internet. To make it easy Google was established by Larry and Page in 1998. They created an algorithm that arranged all websites on the internet on the basis of their popularity, due to which users were able to get search results according to popularity.
What are Product based companies?
Product Based companies are those companies that manufacture their own products and sell them to consumers through the market. The maximum percentage of their revenue is generated from selling their own products. Products of companies can be digital like software, messenger, cloud storage, etc, and also analog like TV, watch, car, engine, etc. Once move your eyes around you, you will see many devices such as TV, fridge, computer, and your mobile, all of these things are the products of the companies. such as the product of Apple is the iPhone, the product of PepsiCo is soft drinks, and the products of Dell are laptops, computers, and accessories.
These types of companies do not make products for a specific person. Consumers have to buy the product in the same condition as it is available in the market. Example – If you want a special refrigerator that has more part of the freezer and less part of normal freeze, it is not available on the market. You have to buy a refrigerator as per the availability. If you are wishing to get a special car like the modified car. The company won’t modify a car for you only. You have to buy the car as available on the market. There this is clear that companies have no direct interaction with the public. Company do their research and design their product which is in maximum public demand.
Pros of Product based companies
- Well finished products are made because of the habit of making the same product over and over again.
- Product Based companies pay a good salary to their employee. If the flexibility of the company is more, they will give you more services too.
- The whole team works on single agenda because there are no different customers. Employees keep their full concentration on improving the quality of the product.
- Employees also get some stocks of the company. It means the company gives you shares with your salary. From these shares, you can earn more money for yourself.
- The interaction with customers is too less, therefore, you don’t have headaches. This is good for the people who have to spend their full time completing the given work.
- Working time is flexible. There is no time limitation to complete the work.
Cons of Product based companies
- According to competition, there are high chances to fall the company anytime. Like Nokia was a world leader company, but due to competition it fall down and outed from the market.
- If the company falls down, shares will also be down. You will lose your job also. This is not safe to do a 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 your communication skills too.
- If you fail to give the best service to the company, they will kick you from the job. Because the company does not compromise on the quality of their product.
List of top Product Based companies in India
Here is the list of top Product Based companies in India which included companies from every part of India like Delhi, Pune, Hyderabad, Bangalore, and Chennai.
John Warnock and Charles Geschke have founded the company Adobe in the garage in December 1982. The headquarter of Adobe is located in San Jose, California, United States. Adobe has its branches in Noida and Bangalore. Adobe company makes multimedia and software products.
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
Revenue: $11.17 billion
Jeff Bezos founded Amazon in July 1994, in Washington, United States. The headquarter of Amazon in India is located in Hyderabad and its six offices are located in India Bengaluru, Chennai, Hyderabad, Mumbai, Pune, and Hyderabad.
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
Revenue: $386.064 billion
5 more people with Mark Zuckerberg have found Facebook in 2004. The Indian head office of Facebook is located in Hyderabad city of Telangana state.
Products: Facebook, Instagram, Messenger, WhatsApp, Watch, Portal, Oculus, Calibra, Giphy, Messenger, Watch, and Portal.
CEO: Mark Zuckerberg
Revenue: $85.97 billion
Larry Page and Sergey Brin has started Google in 1996. They have invented the important thing i.e. Pagerank. Google has four offices in India at Hyderabad, Bangalore, Gurgaon, and Mumbai.
Products – 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
Revenue: $66 billion
5. Hewlett-Packard (HP)
Hewlett and Packard started a part-time job in a 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
Revenue: $56.64 billion
6. IBM (International Business Machines Corporation)
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
Revenue: $77.14 billion
Intel was founded in 1968 by Arthur Rock, along with Gordon E. Moore and Robert Noyce. The headquarter of Intel is located in Santa Clara, California, United States. Intel has its branch in India also.
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
Revenue: $77.87 billion
Bill Henry Gates and Paul Allen founded Microsoft in 1975 in United State. The headquarters of Microsoft in India is located in Hyderabad city of Telangana state.
Products: IntruShield, McAfee Change Control, McAfee DAT Reputation, McAfee E-Business Server, McAfee Entercept, McAfee SiteAdvisor, McAfee VirusScan
CEO: Satya Nadella
Revenue: $143 billion
PayPal was established in December 1998 as Confinity to develop security software for handheld devices.
Products: Online money transfers through Paypal.com
CEO: Dan Schulman
Revenue: $17.772 billion
SAP (Systems, Applications & Products in Data Processing) is a Germany originate software company currently based in Walldorf. SAP provides ERP software all over the world. The offices of SAP India are located in Banglore, Kolkata, Mumbai, New Delhi, and Gurugram.
Products: SAP Business One, SAP S/4 HANA, SAP Business ByDesign, SAP CRM, SAP ERP, SAP PLM, SAP SCM, and SAP SRM.
CEO: Christian Klein
Is it good to work in Product based companies?
There are many myths in the market. Many people say that “doing work in a Product based company is very good, the work environment is too good, the pressure of work is less and salary is too2 high”. Some of the myths may be correct but not all.
Let’s talk in deep about it. Here you do work, in return for your work, they pay you a salary. The obvious thing company is earning more high amount from your salary, therefore it is surviving in the 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. Your 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 become successful. Now you don’t need to invent it again. I am trying to tell you there is one-time investment.
Example – 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.
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 successful. As like What’s App, this is not mandatory that your chatting app also will be successful. There were many apps in the competition with What’s App. What’s App is ahead from them because its 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 things. Because there are already many companies on your category.