Indiamarket.
com
Group 3
MBA 1st year Sec A
Amritayan Das
Parth Garg
Akshatha Amin
Stanley John
Praveen Hegde
Q1
Explain the business model of
[Link]. Evaluate the business
model using porter’s five force model.
Business model
• B2B dotcom company
• Infomediary: provides value added information services to
several industry segments
• Caters to more than 40 industry segments (Chemicals
Construction Consultancy & Services
Electrical & Power Equipment Electronics & Automation
Engineering Fertilizers & Agrochemicals Food & Food Products
Handicrafts Healthcare Information Technology
Iron & Steel Products Gems & Jewellery Leather
Logistics Services Minerals Non Ferrous Metal Products
Office Equipment Packaging & Containers Paints & Dyes Paper
Plastics Pollution Control Wood & related products
Refractories Rubber & Rubber Products Sporting Goods &
Products Telecom Textiles )
Customer and revenue
• Has a vendor list more than 1,00,000
• Transaction based revenue Model
• Also gets revenue from consultancy
• e-procurement enabler for large corporates such
as Britannia, Marico , Maruti Udyog Ltd, Aditya
Birla Group, Coca cola, Cadbury, Tata Tea, Godrej
, Blue star, Sundaram Fastners, GE power
controls, ICICI, Crompton Greaves Ltd, Moserbaer
India Limited , Asahi Glass Company Ltd , UB
group
• Has over 140 different categories of product
Strategic aliances
• E.M Warburg, Pincus & Co. LLC (Warburg) and Intel
Capital as its investment partners
• partnered with Dun and Bradstreet, India to provide
credit rating to the companies participating in online
marketplace
• alliance with Ariba Inc. for adding auctions, reverse
auctions, request for quotation (RFQ) and negotiation
functionality to its marketplace
• alliance with Goodex AG, Europe's leading sourcing
and auction service provider, This allowed
indiamarkets to offer international procurement
services to its clients in India
Services
• It provides basic end to end B2B service starting
from discovering partners to fulfillment and
payment
• Two primary solutions e-buy and e-sell
- E-buy solution enables buyers to
automate their procurement activities starting
from requesting to quotation to generating
invoices and receipts.
- E-sell solution is sales and distribution
automation solution linking sellers and their
distributors
Other services
setting up business catalogues,
it supports work-flows for sales and distribution,
goods dispatch/ receipts and payment processes
allows sellers to have electronic records of rate
contracts,
Purchase documents,
Shipment management documents,
Payment process documentation
free services
business catalogues,
buyers posting,
postings for used machinery,
excess inventory,
contract manufacturing,
industrial assets
Unique services
• platform for identifying specialized agencies
that provide quality management services
such as inspection, surveying, analytical
testing, accreditation & certification and
consultancy.
• provides neutral marketplace for interaction
between Logistics players and manufacturers
value added services
• This help organizations take judicious business
decisions related to purchase such as,
Spend Analysis for managing company costs effectively
Project Based Services
Compliance Management
Total Procurement Outsourcing
Low Cost Country (LCC) Sourcing- With its offices
spread in china as well, Indiamarkets provides a
platform for global buyers to procure goods and
services from India and China.
Business Model of [Link]
Customers
Suppliers Buyers
Products Products
Used Machinery Used Machinery
Surplus [Link] Surplus
Inventory Inventory
Contract Contract
Manufacturing Manufacturing
Industrial Assets Industrial Assets
Transaction
Based Revenue
Model
Porter’s Five forces competition model
Buyers Suppliers
Five
New Entrants Competitive Substitute Products
Forces
Rivals
Buyer
• Procure raw material and services from
market place
• Good bargain for buyers; purchasing cost is
reduced (FMCG Major Britannia has claimed
to have achieved five percent cost savings by
using e-procurement)
• His market place gives purchasing efficiency
• Value added services are of help
Suppliers
• primarily small and medium enterprises SMEs
• Sales models like auctions and reverse
auctions reduces the bargaining power of
suppliers
• Free registration
• Free services like the postings help the
suppliers
New entrants
• Has a good alliances which will be a barrier for
new entries to this field
• Should provide the suppliers a better deal to
avoid new entrants to market
Substitute products
• Firms website
• Government websites for small scale
industries
• Other websites like [Link],
Rivals
• There are very few website giving such e
procurement services
• Eg: [Link], [Link],
[Link]
Q2
Compare the business model of
[Link] with [Link]. Explain
the differences in their strategies and
strengths and weaknesses.
Indiamarkets Vs Indiamart
strategies
indiamarkets indiamart
• horizontal B2B marketplace currently • Horizontal B2B marketplace
focuses as e-procurement enabler • Online tenders
• No such facilities • Portal sponsorship
• End to end business solution • Premium listings
• Reduced purchasing cost • Banner advertisements
• Alliance with Dun and Bradstreet for D- • Certified with ISO 9000:2000
U-N-S Number • India Mart Trust seal
• Ads, ads on trade leads and trade shows
• Unique services to handle purchases • Single gateway with multiple payment
• ads on buyers postings, used options ABC [Link] highest
machinery, industrial assets, surplus security
inventory • More than 9000 catalogs
• Free catalog services • No such facilities
• Has reverse auctions • ads on buyers postings,used machinery,
• Ads, ads on trade leads and trade industrial assets, surplus inventory
shows
Strength
indiamarket Indiamart
• Pays attention to premeir • Excellent distribution
players or matured players system
like Britannia • Built strong image among
• Gives end to end business customers
solution • Excellent brand loyality for
• Global sourcing enabler its products
main focus in india • Company has made product
• Good services to clients range attractive
weakness
indiamarkets indiamart
• Not well designed wedsite • Some products are high
• Does not give suppliers a prices compared to other
good bargain products
• Companies branches are
not spread out through out
the region
• Company pays less
attention to matured clients
oppurtunities
indiamarkets indiamart
• Can expand • India has vast potential
• Can give more value added market
services • Can prove to be a major
• Have new revenue model threat to competitors if it
like advertisement model increases its marketing
etc effort
• Should concentrate on
premium segment market
threats
indiamarkets indiamart
• Competitors • Arrival of MNCs
• Government sites • Arrival of products with lower
cost backed by aggressive
promotional schemes by
competitors
Reference:
[Link]
4332749/Final-Project-1
Q. Identify any one vertical E-
marketplace and after studying
their business model comment
on how Indiamarkets can
provide value to it’s customers
and compete with vertical E-
marketplaces.
VERICAL E-MARKETPLACES
• Focused solely on the need of one particular
industry
• Industries with a large base of transactions and
with many fragmented buyers and sellers
• Industries that have high search and comparison
costs
• Provides operating efficiencyand helps to reduce
supply chain costs, inventories and cycle time
• Eg: steel or automotive industry
HORIZONTAL E-MARKETPLACE
• Offer services along multiple vertical industries
• Not focused solely on the need of one
particular industry
• Wide variety of customers who require a wide
variety of products
• If one product is not doing particularly well in
the market, the firm can make up for that with
the other products that it offers
• An example of a vertical e-market place is
[Link]
• It specializes in providing industry specific services
which in this case is steel products
• Indiamarkets can focus to increase the quality of
the goods as well as the services that they are
currently providing in order to attract more
customers.
• Have a tie up with the major brands in the market
in order to increase the credibility of the site
• Provide more value added services