E-BUSINESS MANAGEMENT AND STRATEGY

Assignment#02: Business Model and Strategy

HELLO!
Group 13
Parishmita Bora (15030141096)
Ganesh Swami (15030141089)
Yogesh Khetan (15030141062)
Mukesh Mahto (15030141036)
Devendra Shekhawat (15030141090)

Business Model of

Key Elements of Quikr

Business Model
1.Value proposition
Free door step delivery , vast product range at affordable price , product
search customization using different types of filter , brand awareness.

2. Revenue model
Premium listings ,lead generation , advertising .

3. Market opportunity
Quikr market size is about 1$ billion and it operates in selling used mobile
phones, cars and furniture, almost everything.

4. Competitive environment
Quikr has competitor like olx.in , sulekha. olx.in has 30%marketshare while
Quikr acquires market share with 37%

5. Competitive advantage
Quikr has a competitive advantage by providing goods at affordable price than
olx. Also it has asymmetry as it has more resources like investors , financial
support and being first mover advantage by providing door step delivery.

6. Market strategy
Quikr allows sellers to post their ads and help the buyer to buy the goods through
communication by phone call or chats. Features like MSP (Maximum Selling Price)
or its missed call service programme helps in customer retention by providing a
convenient platform for its users.

7. Organizational development
Department like shipping ,customer support , marketing can produce jobs which
can help quikr to grow their business.

8. Management team
Experience in advertising , marketing an lead quikr to become #1 in in the market.
Inclusion of more blue collar jobs and matrimony as a category

Business Strategy
of

 Started off with Google AdSense & went on to

mass media & social media advertising
Implemented missed call service & chat service
More focus on quality than quantity
Reach out customers in their native language
Missed Calls for Massive Profits
Now going mobile

Business Model of

Key Elements of HomeShop18 Business

Model
1.Value proposition
1,000 plus brands across wide range of product categories like clothing, jewelery,
appliances, beauty etc. Strong support of Reliance Industries Limited/Network 18.Free
home delivery.

2. Revenue model
Sales ,advertising

3. Market opportunity
Homeshop18 has market value of 4500 crores and is retained in market by proving
shopping 24 hours live on TV.

4. Competitive environment
It has competitor like Starcj live ,naaptol . Homeshop18 has market share with
48%,while naaptol has 16% and starcj with 20%.

5. Competitive advantage
Homeshop18 is having first mover advantage as it was Indias first 24 hour home
shopping TV channel. Also it has competitive advantage by having most of market
share.

6. Market strategy
Partnered with major brands like Reebok, Nokia, LG etc in India . Presence across TV,
Web and Mobile. Also it is available to customer 24*7 through TV channel and to the
customer who are not connected to the internet.

7. Organizational development
Department like customer support , marketing,24*7 TV availability can
produce jobs which can help them to grow their business.
8. Management team
Leveraging its brand recognition to have an innovative marketing campaign to
position itself as a strong ecommerce portal. And proper recruitment can also be an
advantage.

Business Strategy
of

New Entrants:
Industry condition: Very high potential but is
at its nascent stage. Lot of scope for growth
Entry of many small players
High capital investment required
Homeshop18 is ahead in their learning curve.
Although, other players are learning from
homeshop18s mistakes as well.
Competition:
Homeshop18 has less competitors of same
size, but many in smaller size
It is not only competing against their
competitors in ecommerce but also against
traditional retail stores.
Incentive to fight is low, as the market is big
enough for everyone to grow.

Substitutes:
Emergence of M-Commerce which would
make purchase process more convenient.
Traditional retail stores which are trusted
by customers because a lot of them
prefer

transacting in person over the ecommerce

companies.
A lot of Ecommerce companies present in the
market.
Power to buyers:
To attract more buyers, various methods like
COD are used to make process more easier
Buyers take time to trust the company.
No price discrimination is possible as the
information regarding price is available to the
buyer without any interaction
Products are not differentiated. Hence,
buyers can easily switch from one player to
another.
Power to Supplier:
For supplier ecommerce is another platform
to sell their products.
Not all the suppliers might have the
willingness to forward integrate.
Price discrimination is possible.
As homeshop18 is an inventory based
business, they buy in bulk from suppliers.
Treating suppliers as partners would be
beneficial for both.

Business Model of

Key Elements of Mobikwik

Business Model
1.Value proposition
Heavy discounts,24*7 On the go recharge facility ,various cashback offers , money
transfer .

2. Revenue model
Transaction fee , sales , commission.

3. Market opportunity
Mobikwik has market value of 15 million and by providing offline recharge facility
and various cashback offers led it to rule online recharge market.

4. Competitive environment
It has competitors like freecharge ,paytm , helpchat etc. Mobikwik has market share
of 23% while freecharge and paytm has market share as 33% and 43% respectively.

5. Competitive advantage
It is having first mover advantage by providing digital wallet with a limit of rs. 1
lakh and two step mobile verification.

6. Market strategy
Mobikwik tie up with big bazar , payback card for cashback offer and many more
banks for digital wallet will have an effect on the market.

7. Organizational development
Department like customer support , marketing,24*7 online recharge availability can
produce jobs which can help them to grow their business.

8. Management team
Leveraging its brand recognition to have an innovative marketing campaign to
position itself as a strong recharge portal along with proper management team.

Business Strategy
of

Mobikwik main focus is on building wallet offering as the most convenient and
preferred way of making payments across the entire spectrum of online and
offline consumer services that customers access.
The company uses social media platform effectively for lead generation and
launches various offers to convert it into sales.
Followers on Facebook are increasing in count day by day which is making
MobiKwik an Indias leading Mobile Wallet Company.
Inked a few great deals with Microsoft, SBI, Book My Show, Meru, Dominos etc
Mobikwik have tie up with Big Bazar for wallet service and the tie-up will be
extended to other Future Group entities like Central, Brand Factory, Home
Town and e-Zone in the coming quarter

Comparison between Business Model

Quikr

Revenue obtained
through AdSense
Missed call service
Daily quality listing
curation
Gives a competitive
advantage to the
business
Multilingual support

HomeShop18
Revenue obtained
through direct
sales
Daily offers for
limited time
period
Department like
customer support
, marketing,24*7
TV availability
gives competitive
edge

Mobikwik
Revenue obtained
through
Transaction fee ,
sales ,
commission
Digital wallet with
a limit of Rs. 1
lakh
Only two step
mobile
verification
Tie up with big
bazar , payback

Comparison between Business Strategy

Quikr

Started off with Google

HomeShop18

AdSense & went on to

Mass media & social

media advertising

Implemented missed call

service & chat service

Reach out customers in

their native language

Missed Calls for Massive

Profits

Now going mobile

Homeshop18 has less

competitors of same size,
but many in smaller size
It is not only competing
against their competitors
in ecommerce but also
against traditional retail
stores
Moving to M-Commerce to
attract more buyers, various
methods like COD are used
to make process more
easier
As homeshop18 is an
inventory based business,
they buy in bulk from
suppliers. Treating suppliers
as partners would be
beneficial for both.

Mobikwik

Mobikwik main focus

is on building wallet
service
The company uses
social media platform
effectively for lead
generation and
launches various
offers to convert it
into sales.
Deal with Microsoft,
SBI, Book My Show,
Meru, Dominos etc
Tie up with Big Bazar
for wallet service and
the tie-up will be
extended to other
Future Group entities

Business Model vs Business Strategy

Business Model

Business model explain how

business is developed, delivered
and providing value to customer
More focus is given on cost and
revenue model
Business model is developed
taking care of people, process and
partners
Technology and infrastructure
played vital role in Business model
It can be changed as per market in
short time

Business Strategy
Business Strategy is
focussed on long term
planning of revenue
generation from the values
provided
Focus is more on ROI of
business
Business strategy involve in
trying to find solution to
competitors, provide
superior service & product
It is a long term planning to
reach objectives of business

THANKS
!