Aam Aadmi Party

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Aam Aadmi Party's journey so far

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Aam Aadmi Party

  1. 1. Aam Aadmi Party DISCLAIMER This study is only an academic exercise. We do not intend to endorse or support or promote any political party Prepared by: Dhirendra Mani Shukla Saurabh Kumar Roshan Kumar Gupta Rishi Pawar Abhinandan Pandey Saurabh Karodi Rohit Kadel IIM L
  2. 2. Introduction Leadership: Arvind Kejariwal Manish Sisodia Prashant Bhushan Shazia Ilmi India Against Corruption movement captures the public imagination. Hazare, Kejriwal accept that their differencesare irreconcilable and part ways Party formally launched in Delhi Kejriwal takes oath as Delhi CM Kejriwal announces formationof a political party AAP wins 28 seats in Delhi elections Aug. 16-28 Dec. 28Nov. 26 Oct. 2 Sep. 19 Dec. 8 Feb. 14 Kejriwal resigns 2011 2012 Vision: Bring Political Revolution in the country Core Values Niswaarth Seva Or Selfless service Honesty and integrity Humility Commitm ent to the cause of ‘Swaraj’ Team Work Aam Aadmi Party (AAP) Primary Block District State National Mnemonics
  3. 3. Electoral Behaviour • Economic growth has become important in voting choices • Focus on economic performance to gain electoral rewards • Many dynamic factors National Level Competition • 6 national + 47 state + 1563 small registered parties • Alliance based politics reduced it to 3 competing entities • Regional and state level politics have gained significance State Level Competition • Indian electoral politics becoming more and more federal in nature • Southern states of India were dominated by regional/state level parties • Similar trends followed in northern part too since 2 decades External Analysis
  4. 4.  Transparency and Internal Democracy  Crisp, clear and consistent mission  Decentralized organizational structure supporting in recruiting members  Effective use of digital and social media  Able to establish coherent brand image as a differentiating factor  Constituency based manifesto  Effective campaigning and booth management  Strong brand recognition  Narrow political ideology  Inexperienced top leadership, particularly in managing crisis  Doubtful governance capabilities  Participation from female candidates less than 30%  Too much of decentralization may cause organizational instability  Paucity of financial resource  Missing internal grievance redressal mechanism  Region centric actions may block its national level aspirations  Lacking political allies  Changing voting behavior: growth expectation and transparent governance becoming crucial factor for voting choice  Rising middle class angst against corrupt practices of incumbent parties  Rising dominance of smaller regional parties  Widening reach of popular, social, and digital media increasing AAP awareness  Merger opportunities with organizations of similar DNA such as Lok Satta and other PUCL (People’s Union for Civil Liberties) affiliated NGOs  Citizens need for stable government  Political dynamics favoring alliance based strategy  Recognized as outsider in states where regional parties are in power  Fierce political rivalry, often attacking at the integrity and intent of the top leadership  Replicating Delhi’s strategy is difficult in larger states SWOT Analysis Strength Weakness Opportunity Threat
  5. 5. Seed Start- up Growth Mature Decline Organizational life-cycle 1 2 4 3 5 The party was able to create the necessary political differentiation to attract attention of the people across country Party has been able to establish coherent brand image All of its activities has reinforced the brand image it has tried to create in the mind of voters The party is currently in its growth phase scaling-up rapidly Future AAP has been in throes of a full-fledged crisis Value Proposition Differentiation Competitive Advantages Sustaining Growth
  6. 6. Seed Start-up Growth Mature DeclineValue Proposition Differentiation Competitive Advantages Sustaining Growth Trust: Party based on promise to clean out corruption Value Proposition An alternative political stream Promise of an honest government Solution based party 1 2 3 4 Unconventional party symbol upholding the image of a party that wants clean governance Differentiation Brand image Coherent brand reinforcing communication strategy Walking the talk of exposing corruption 1 2 3 4 Use of Big data analytics Competitive Advantages Transparency Innovative and frugal ways of campaigning Utilizing social media for promotion 1 2 3 4 Locational advantage 5
  7. 7. Main Challenges • Lack of internal communication evident from the problems faced during Lok-sabha elections ticket allocations • no grievance redressal system or procedure in place has led to the discontent • Rapid growth made difficult for top leaders to interact with members in the lower rung of the party • Gathering resources for large scale operations (contesting on 400 seats at national level) is difficult Increasing Supporter Base • Broadening the political Ideologies • Targeting larger states • Merging with similar organizations Sustaining Competitive Advantages • Strengthening internal democracy • Strengthening brand image Maintaining Organizational Stability • Effective internal grievance redressal system • Effective crisis management • Empowering top leadership to mitigate risks from over-decentralization Sustaining Growth
  8. 8. Party Finances Analysis of funds donated to AAP (Dec 2003 to Mar 2014) MAHARASHTRA, 23,124,404.00, 22.34% DELHI, 21,051,912.00, 20.34%UTTAR PRADESH, 172,05,925 16.62% KARNATAKA, 10,550,248.00, 10.19% HARYANA, 6,164,292.00, 5.96% ANDHRA PRADESH, 4,164,242.00, 4.02% OTHERS, 21,237,015.00, 20.52% 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 12-Dec-13 12-Jan-14 12-Feb-14 12-Mar-14 Numbers of Donators in India  From the period Dec 2013 to March 2014, total Donation collected INR 103.49 million  Average Number of Donors :  12-12-2013 to 17-02-2013 : 673 per day  18-02-2013 to 28-02-2014 : 369 per day  01-03-2013 to 20-03-2013 : 713 per day  The above results show that no impact on number of donors on resignation of Mr. Kejriwal  Funds collected from Delhi and Haryana : INR 27.216 million. & Maharashtra : 23.21 million.
  9. 9. Party Finances Funds from Delhi V/s Maharashtra (Dec 2013 to Mar 2014) 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 12-Dec-13 12-Jan-14 12-Feb-14 12-Mar-14 Number of Donators in Delhi 0 50 100 150 200 250 300 350 400 450 500 12-Dec-13 12-Jan-14 12-Feb-14 12-Mar-14 Number of Donators in Maharashtra -200% 0% 200% 400% 600% 800% 1000% 1200% 1400% 12-Dec-13 12-Jan-14 12-Feb-14 12-Mar-14 % Change in Donators Day to day -200% -100% 0% 100% 200% 300% 400% 500% 600% 700% 800% 12-Dec-13 12-Jan-14 12-Feb-14 12-Mar-14 % Change in Donators Day to day - Delhi Delhi donors shows greater variation (6 times) among the donators vis-à-vis Maharashtra (3 times)
  10. 10. AAP Successful start-ups Seed: Appeal to the masses by emotional connect •Financial Sources: Funding is done through public donations •Risk Analysis: Will the focused approach of Swaraj appeal? •Understanding the common man Seed: Starts with an innovative idea. •Financial Sources: Self-financing/raising money from market •Risk Analysis: Analyze the level of risk •Understanding the customers for product/services Start-up: Delhi Assembly election •A decentralized organizational structure •Innovation and differentiation for gaining Comp. Adv. •Internal financing as well as public donations •Door to Door campaigns, participative policy Start-up: Product/services are in production •Defining the organizational structure •Creating competitive advantage for enhancing market share •Owner, friends, family, suppliers, customers and grants •Selling the concept to the potential customers Growth: Gain maximum market share •Challenges: Developing the sustainable competitive adv. •Customer Retention: Retain valuable customers •Diversification strategies Mature: Stable organization •Challenges: Supporter base stagnates. Competitive advantages are imitated by most of the rivals Mature: Sales and profits tends to be stable •Challenges: Major challenges are fluctuating sales, profits, and negative cash flow Growth: Won 28 seats out of a total of 70 seats •Challenges: Building the national party •Supporter Retention: Strong campaigns across India •Diversification: Introduce small regional parties Comparison of AAP with a Start-up
  11. 11. References Antunes, R. (2008). Party identification and voting behavior: factors structural changes in attitudes and voting intention. Doctoral thesis submitted to the University of Coimbra Duobiene, J. (2008). Corporate entrepreneurship in organizational life-cycle. Economics and management: 2013. 18 (3) 2014: Electoral math – part 2: Head On: Minhaz Merchant's blog-The Economic Times. (n.d.). Retrieved March 20, 2014, from http://blogs.economictimes.indiatimes.com/headon/entry/2014-electoral-math- part-2 AAP: Latest News, Photos, Videos on AAP - NDTV.COM. (n.d.). Retrieved from http://www.ndtv.com/topic/AAP AAP’s performance could be impressive, not unprecedented: study - The Hindu. (2013, December 8). Retrieved March 16, 2014, from http://www.thehindu.com/news/national/aaps-performance-could-be-impressive- not-unprecedented-study/article5434130.ece The business of AAP | Juggling my thoughts... (n.d.). Retrieved March 20, from http://prestidigitator420.wordpress.com/2014/01/17/the-business-of-aap/ Crisis management: AAP encounters attack from all directions - Economic Times. (n.d.). Retrieved March 20, 2014, from http://articles.economictimes.indiatimes.com/2014-01-17/news/46301333_1_vinod-kumar-binny-aap- leadership-aam-aadmi-party Does Good Economics Mean Good Politics in India? (2013, December 19). Retrieved March 16, 2014, from http://carnegieendowment.org/2013/12/19/does-good-economics-mean-good-politics-in-india/gwr9?reloadFlag=1 Evaluation of Aam Aadmi Party from national perspective: Policy Analysis: Arvind Vermin’s blog-The Economic Times. (n.d.). Retrieved March 17, 2014, from
  12. 12. Aam Aadmi Party (AAP) Primary Primary Unit Block Block Council District District Council District Executive District Political Affairs Committee State State Council State Executive State Political Affairs Committee National National Council National Executive National Political Affairs Committee Appendix Detailed Organizational Structure
  13. 13. शुक्रिया आप को!

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