Management of New and On-going Ventures
In the near future, there will be a significant increase in the number of people who own a smartened. It would be opportunistic of Custodial to create Innovative products and services that target the mobile Internet industry. 10 0 Worldwide expansion 10 Austral Is prominent In only a handful of countries at the moment, they could look into global expansion in the near future. 10 0 Custodial Instant Dial Application 10 Custodial could strike a deal with smartened companies such as apple to get an instant dial application that is pre-installed on the phone. This would enable users to all Custodial by simply clicking on the application.
This Is useful as it increases the target market of Austral. Those who were unaware of Austral will now be aware. 10 Threats 10 5. Recommendation 12 6. Conclusion 13 7. References 14 Appendix 15 1. Introduction Vision & Philosophy The company’s goal is to create long-term shareholder value by enhancing its position as a leading local search service. The company’s philosophy focuses on enhancing the experience of the end user through innovation, feedback, integrity and teamwork. What does it do? Custodial is the number one search engine and destination for customers in India.
Its comprehensive database of a multitude of goods and services for all BBC and BIB clients presents a unique proposition for 57 million users across 240 cities in India to access them. Currently available through mediums such as phone, SMS, WAP and Web, Custodial gets around 26 million phone calls a year. To cater to this large volume and continually increase popularity, a workforce of 4000 and over 135000 paid advertisers are hired. How did it start? Custodial was started with an investment of RSI 50,000 in the year 1994 and returned sales of 1. 34 billion for the fiscal year 09-10.
It also retains 90% of the complete market share. It has rapidly become the most visited local search engine in the country over a short period. The Revenue Model fusillade. Com Custodial. Com basically earns from clients which invest in their listings to make them sponsored listings, and from the percentage of sales that happen through Custodial. Com. For the Various steps involved refer to the appendix. 2. Environmental Analysis Political The mega event of the largest democracy, with assembly elections in four states this year and a general election; early next year will be a vital development for India economy.
Economic India has shown strong economic growth over the last few years. According to MEMOS Annual Report, the growth rate for Indian’s gross domestic product in 2009 – 2010 was 8%, 8. 6% in 2010-2011 and 6. 9% growth in 2011-2012. However, according to the CIA Fastback, Indian’s GAP, on a purchasing power parity basis was estimated to be approximately $4. 47 trillion in 2011 and $4. 76 trillion in 2012. The McKinney Global Institute Report projects “true” discretionary spending power to potentially increase sevenfold from 13 million households in 2005 to 89 million households in 2025.
Social According to the CIA Fastback, India is one of the world’s most populous countries tit approximately 1. 21 billion as of July 2012. According to the McKinney Report, 2025. Technology The online classifieds market is also driven by the strong growth in online advertising. India currently has the third-largest user base in the world of about 120 million Internet users which is set to increase threefold by 2015. The largest advertisement segment of 46. 0% share of the overall Indian advertising market advertise through television, following by 40. 4% through print advertising and 5. % through outdoor advertising, 3. 9% through radio advertising and about 3. 4% through the internet. Of all the segments of the advertising market, the internet advertising segment is expected to be the fastest growing segment with an expected growth rate of about 51% between 2011 and 2012. Thus, the growing availability of 36 coverage in India provides the essential infrastructure for Just Dial’s consumers. Legal India has focused on promotion and development of Seems through socio-economic policies since the Industries (Development and Regulation) Act 1951.
Porter’s Five Forces Analysis: New Entrants: Google, Times Infilling High threats from New Entrants Buyers: SEEMS Low bargaining power Suppliers: Seems CUSTODIAL Substitutes: Get, Assume, Sulkers Low threats from Substitutes To have a better understanding of the market forces we use the Porters Five Forces analysis. The chances Inter Firm Rivalry is high. Large companies like Google are also looking into this service and this raises the level of competency. Many have a similar model to that fusillade. Com. The type of service being offered by Custodial is all encompassing and also there is no other alternative that can be found in the market.
This is because Custodial has established its brand name and created awareness new companies entering this field is high. The main reason is that it wouldn’t be difficult to setup the necessary infrastructure to start a similar service. The least difficult would be to setup a same service on the web. The suppliers have a lesser bargaining power than Custodial because it is the leading company in the sector of market it belongs to. Clients would mostly choose Custodial to get a maximum exposure. The customers get to access information without paying for it.
Also, the clients that Custodial serves, provides them with a platform to advertise their companies at a reasonable price. So, both the customers and clients have a very low arraigning power. 3. Soot Analysis Strengths fusillade. Com: * First mover advantage in India local search market First mover advantage in India local search market that offers consumers seeking information on local businesses, especially small enterprises that need the exposure. They first started in 1996 before expanding to internet and mobile services in 2007.
Given in the market for a period of time, Sadism’s brand awareness is very dominant; it is also backed by large customer base and nationwide coverage. This is further supported by very strong brand recall in India as evidenced by the 254. Million searches of the database that were conducted in fiscal 2012. ( http:// www. Depurative. Com/company/? Id=252) * Good Potential customer outreach and expansion strategies Most of business listings in their database are Seems and hence their marketing strategies are also catered to these companies to both maintain good business relations and attract potential customers.
They provide attractive value proposition for Seems by offering cost-effective platforms, personalized services and access to relevant users. Judicial provide an affordable platform to Seems who find it o costs to maintain a website but that the same time, wanted more brand exposure. Also, through Sadism’s data collection team canvassing, they are able to get direct feedback from customers and to also advertise about Judicial. (http:// www. Reseller. ]custodial. Com/FAQ. PH) Listing on Judicial also provides businesses with exposure to users that time of purchase. Modern infrastructure and constantly updated technology Judicial had a dedicated team of 139 technology experts with the industry expertise to research and develop new software applications for their daily business operations. Hence they will be able to achieve scaling flexibility with advanced technology platforms to meet operational requirements without incurring substantial costs, resulting in them being the 1st Indian company who received Red Hat innovation prize. (http://differential. Com/detail. PH? Vastly experienced management team hence efficient business model Sadism’s revenue model promotes constant inflow of subscriptions and cash flows. ((http://www. Reseller. ]custodial. Com/ terms_condition. HTML)) Their customers make payments in advance of their advertisements in searches which reduces Sadism’s credit risk exposure to customers. Hence they also do not have any outstanding trade receivables. Judicial also do not have any long term debt and have maintained focus on capital efficiency being heavily dependent on external financing sources. Weaknesses fusillade. Mom: All these factors may cause adverse effects on Sadism’s business, reputation and financial conditions. * Dependence on Game’s as our target paid advertisers According to a survey, “Understanding the Marketing & Advertising practices of Advertisers listed with Just Dial”, advertising is a limited and discretionary expense for Seems. Given their limited marketing resources and experiences, they may not see the value in advertising on websites but rather choose other mediums like newspapers,etc. Also, consumer’s disposable income may decline during recessions.
Hence, Seems, with lesser financial resources may face difficulties or possibilities of closing down, resulting in cutting down of advertisement costs from their budget. Even though Judicial provide free services to our customers, it cannot ensure the maintenance of user base volume during financial crisis.. * Inter-dependency on search engines to direct users to their site Potential customers are driven to Judicial y various internet engines who are also competitors, portions of users are directed to the site via on-site advertisement on their sites (Egg.
Per-click and display advertising) This makes Judicial vulnerable to the pricing and dynamics of competitors’ advertisement. (HTTPS://plus. Google. Com/+]custodial#+]custodial/posts) As a result, Sadism’s access to existing and potential users may be limited. * Conflict of interests in Custodial promoters Sadism’s promoters have interests in entities which are in the same line of business which may cause conflicts of interests in decision making. Sadism’s promoters and ironical shareholders own shares of JDK Global in States and Canada. (http:// us. ]custodial. Com/, http://SMS. ]custodial. Mom/management-team) The promoters may spend substantial time and resources to the new company. Also when Judicial expands to the States and Canada, conflict of interest may arise again as none of their promoters have undertaken not to compete with Judicial. * Heavily dependent on functioning of telecommunications and website Given that Judicial is a phone and website based search service, it is thus heavily dependent on the net and telecommunications services. Once any of these fails to achieve satisfactory reference, reliability and availability, Judicial will be directly affected.
Furthermore, Sadism’s website and servers are also vulnerable to unforeseen technical glitches like computer viruses, hacking, defacement, etc. Opportunities * More expansion into the mobile industry * In the near future, there will be a significant increase in the number of people who own a smartened. It would be opportunistic of Custodial to create innovative products and services that target the mobile Internet industry. * Worldwide expansion Custodial is prominent in only a handful of countries at the moment, they could kook into global expansion in the near future. Custodial Instant Dial Application Custodial could strike a deal with smartened companies such as apple to get an call Custodial by simply clicking on the application. This is useful as it increases the target market of Custodial. Those who were unaware of Custodial will now be aware. * * Fast rising competition In the telecoms industry, where search services are paired with advertising services, Custodial faces increasing competition not only locally but also internationally. This can be due to the fact that their competitors – ranging from large and established companies to emerging start-ups – may have a number of advantages over them.
Such advantages include but are not limited to greater financial resources, access to highly sophisticated technology and greater knowledge of target markets due to more extensive research done. With such resources, they are able to better innovate and produce better products and services at a faster rate. This would be instrumental in attracting users and paid advertisers. This threatens Australia’s competitive edge. Australia’s user traffic and number of paid advertisers could significantly decrease if they are unable to keep up. This would result in the decline of the business.
Such competitors include local Indian search services such as Sulkers, Assume, Classical, Get and the international search service giant Google. * Infringement of intellectual property rights by third parties Custodial has put taken precaution against the infringement of their intellectual property by third parties. Such precautionary measures include but are not limited to confidentiality agreements with their employees, trade secret protection and copyright & trademark laws. However, a lot of their business information – which includes the identity of aid advertisers – is available online.
This could tempt competitors to produce similar products and services to present to the same paid advertisers. This poses a threat to Australia’s business, as they do not have exclusive agreements with their paid advertisers that forbid them from providing data to competitors. The absence of laws and regulations for the protection of databases in India and that of effective intellectual property rights protection in every country that Custodial hopes to expand to in the future also poses a threat to their business.
This could potentially cause revocable damage to their business, especially in the event where competitors find out their trade secrets. 4. Company Analysis Value Chain Framework PRIMARY ACTIVITIES Inbound logistics For the functioning of the business, Custodial requires a large number of servers to handle the large database of the information pertaining to the BIB and BBC companies. These companies pay Custodial as they facilitate the increase in a business’ or client’s visibility and thus enable them to get promotion in regions outside their physical reach.
Other necessary equipment would be telephones, amputees and other communication sets to efficiently transmit information from the database to the customer and also inform the client about the interest of the customer. Operations Most of the clients that we serve have the one basic need, of maximizing their this purpose, Custodial segments them depending on the service the client offers and their target audience or market. They then give the client a priority listing centered on the criteria among query results to other consumers.
Another factor in Australia’s operational strategy is their quick and efficient retrieval of reliable information from the servers. This makes looking for information convenient to the customer. Services Custodial enables consumers to search for a variety of options with minimal difficulty while saving valuable time and allowing them to have easy access to goods and services and customers at the best possible prices. They provide a one stop platform for all consumers’ needs, eliminating frustration rising from their search while bridging the consumer-client gap.