Quikr EFE & IFE Matrices

MFSA RESEARCH PROJECT

The Company

Founded in the year 2008 by Pranay Chulet, alumni of IIT-Delhi & IIM-Kolkata

Quikr is inspired by the foreign business model Craigslist which started its operation in 1995

Services cover 160 categories in over 83 cities

1.8 crore consumer per month and millions of ad posted by users

Among Worlds top 250 private companies

Quikr is backed byMatrix Partners India,Omidyar Network,Norwest Venture Partners,Nokia
Growth Partners,Warburg Pincusand invested in byeBay Inc.

External
Analysis

INDIAN MARKET STUDY FOR

ONLINE CLASSIFIEDS

The Online Classifieds Market

Online Classified Market Size(in million US $)

80 million online users today, 376 million by 2015

Device costs - PCs or smartphones are not going to be limiters to

growth. Access and pricing will play the major role

PC broadband - the key driver for e-commerce growth - to have

15.6% household penetration

Conventional wireline broadband likely to be eclipsed by the

introduction of 4G and the growth of CDMA dongles

3G will change the face of Internet access - creating access for

22% of the population Shared, or public access will reduce in
proportion as more people get personal Internet access

The time spent online will grow by 27% per user - driving
advertising and commerce

Number of transacting users to grow from 9 million at

present to 38 million

600
500
400
300
200
100
0

2008

2009

2010

2011

Users

2012

2013

CAGR = 29%

2014E

2015E

Opportunity Drivers
Emerging Markets
Indian Ecommerce is emerging at a very high rate to become
worlds largest economy. The online marketplace is a great
opportunity space.

Diversify Product Portfolio

Currently company offers services in horizontal classified
business. Company can venture into other online businesses
as well.

International Expansion
Besides India, there are several countries with high market
growth but low internet penetration.

3 Players in a Market size of Rs 65000 Cr

High Market Concentration
The market for horizontal classifieds is limited to olx and quikr
in India. Quikr is the only horizontal classified that offers
premium listing service. Hence it has high degree of control
over pricing

Threat Areas

Uncertain Economic condition

Even after the entry of new government in India with huge
majority, the GDP continues to lag behind. It is hypothesized
that the economy may currently be in a Ache din bubble.

International Competition
There are many huge competitors in International market with
the same business model. Latin America based OLX Inc. and
US based craigslist are major threats

Currency volatility
Indian Rupee has been highly volatile in the past few years.
RBIs current efforts have brought in some stability but the
valuation of the currency has been in a declining trend ever
since.

EFE Matrix
External Factor Evaluation Matrix (EFE)
S. No.

Opportunities

Weight

Rating

Weighted Score

0.1

0.3

1.

India as an Emerging market

2.

Growing online market

0.12

0.36

3.

Diversification

0.09

0.18

4.

Internet Penetration

0.12

0.36

5.

E-commerce expansion in Asia and Pacific

0.11

0.33

6.

International Expansion

0.07

0.14

Weight

Rating

Weighted Score

S.No.

Threats

1.

Uncertain Economic Conditions

0.09

0.18

2.

International Competition

0.05

0.05

3.

Domestic Competition

0.1

0.3

4.

Major market openings, giving access to new entrants

0.1

0.2

5.

Competition from unorganized sector

0.05

0.15

TOTALS

2.55

Internal
Analysis

COMPANY AND IMMEDIATE

COMPETITOR STUDY

Strength sources

Strong finances
The company is currently 6th largest in India in terms of
adsense revenue. The total revenues of the company amount
to 200 cr per annum.

Strong Backing
Quikr is backed by Matrix Partners India , Omidyar Network ,
Norwest Venture Partners , Nokia Growth Partners , Warburg
Pincus and invested in by eBay Inc.

Customer Loyalty
Customer engagement has been tripled and traffic to the site
has doubled in the years between 2010-2013

Fund Raising Capacity

Company is valued at $1500 Mn and thus have great ability to
raise funds through venture capitalists. Recently quikr raised
$150 Mn through Warbug and Nokia. (Highest for any
ecommerce)

Innovation
The company has been Innovating according to the
preference of Indian users. The Missed call to buy and sell is
a unique feature that is attracting major share of customers

Weakness Areas

Comparatively Weak Brand

Brand Association with OLX is higher because of its catchy
and aggressive marketing strategy

Customer engagement
Though the customer engagement is increasing, Quikr still
lags behind Olx. The bounce rate for Quikr is much higher
than Olx.

Excluding IOS users

M commerce is in the boom period because of increasing
penetration of smart phones. But the company is still to launch
its app of IOS users and thus excluding them from the
potential customers

Prone to fraudulent activities

In C2C business, there is very little control over the content
people post online and it is very difficult to determine the
quality of the items posted. Thus it becomes difficult to
determine if someone is committing fraud

R&D/ Technology
The company is not using Big data/advanced analytics
techniques to determine user needs. The rivals are making
advantage of latest technologies

IFE Matrix
Internal Factor Evaluation Matrix (IFE)
S. No.

Strengths

Weight

Rating

Weighted Score

1.

Experience of the senior management

0.08

0.32

2.

Brand Value

0.1

0.4

3.

Financial Backing/ Fund Raising

0.1

0.4

4.

Customer Loyalty

0.09

0.27

5.

Market Position

0.07

0.28

6.

Trained Staf

0.07

0.21

7.

Strong financials

0.09

0.27

8.

Customer Support Services

0.05

0.15

9.

Product Portfolio

0.07

0.21

S. No.

Weaknesses

Weight

Rating

Weighted Score

1.

R&D/ Technology

0.09

0.18

2.

Prone to fraudulent activities

0.07

0.14

3.

Advertising Campaign

0.07

0.14

4.

Website in Local Languages

0.05

0.1

TOTALS

3.07

Conclusions

The EFE score of the company is 2.55, which is marginally better than
the average score.

This means that the companys ability to respond towards external

factors is just average and the companys exposure to external risks is
high.

The score is low also because the market as a whole is not very
positive, for Quikr, their expansion is dependent upon the increase in
internet penetration in the country and also several other factors as
mentioned before like currency volatility are beyond the companys
control.

Conclusions

The IFE score of the company is 3.07 which is a good score.

This implies that the company has very strong internal factors.

The score is high because of Quikrs Excellent financial backing,

VCs and Partners,

Experienced team,

Processes
Brand Value

Despite a good overall score, the company lacks in Technological advancements and
R&D, and also their promotional campaigns are far behind their competitors OLX.

These weaknesses need to be worked upon as in face of competition, which is sure to

increase as markets are opening, Quikr might fail to reap its first mover advantage.

Sometimes the biggest threat

can be found in how you
understand and confront your
great weaknesses.
- MICHAEL SPRINGER

Thank you