Aam Aadmi Party's journey so far

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. 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. 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.  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. 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. 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. 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. 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. 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. 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. 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. 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

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