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    Metal Junction Case Study

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    Ashish viswanath prakash
    The winning junction Case study on metaljunction.com The case study is about metaljunction a joint venture initiative of SAIL and TATA steels,the story of their incorporation,business model and the people behind the success..A detailed analysis of business model and strategies is presented, its worth studying because its a glorious example of strategies which helped a nonconventional ecommerce iniative in not just surviving but creating saga of success where similar initiatives failed to put a hold.   Done by Group 3 SEC B FIRST YEAR MBA MIM ASHISH VISWANATH PRAKASH ANONA LEWIS NITESH SHARMA MSGS KARTHEEK NEETHU MURALI SHIBANI GANESH The Winning Junction: Case study on metaljunction INTRODUCTION Metaljunction is a joint venture between the Steel Authority of India Limited (SAIL) and Tata Steel for entering into the primary steel e-commerce business. Metaljunction would add the primary steel products of SAIL under its brand name and prices will be fixed by the company. Metaljunction also doing the e-selling of Tata steel's secondary materials including lazy capitals and dead assets. There is being a significant buyer base after its introduction. In order to entertain new buyers Metaljunction had included logistic services, finance services, metal and mineral auctions and e-cash management services in the site. Metaljunction is the largest e-commerce for steel in the world. It had sold more than 4 million tonnes of steel and currently selling at the rate of 150,000 tonnes per month. It is having more than 5400 customers base. The customers include traders, fabricators, re-rollers and end users. Metaljunction is having a long lasting relationship with the customers because of their operational efficiency, transparency and easy access from anywhere In 2011, mjunction1 completed 10 years, with FY’11 revenue of approximately INR 1 billion2 Earned from online transactions worth INR 248.5 billion that were consummated on its electronic Trading platforms.Mjunctionbegan as a fledgling start-up joint-venture in e-commerce in 2001, Co-promoted by Tata Steel and Steel Authority of India Limited (SAIL). Mjunction was incorporated as metaljunction services limited. It was renamed as mjunction services limited inJanuary 2007 after it had diversified into e-commerce in areas beyond metals. Metaljunction became one of theDivisions with its own portal at www.metaljunction.com. It began operations bySelling‘to-be-disposed idle assets’ and ‘secondary steel’ of its two promoters. Initial growth andStabilizationof the start-up was aided by success in e-sales of ‘secondary steel’3. It is today theLargeste-commerce site in India and the world’s largest e-platform for sale of steel, havingAchieveda CAGR of 80% over a decade. Tata Steel and SAIL now sell all their ‘secondary steel’ Online through metaljunction. Metaljunction.com is preferred when the volume is quite high and the buyer feels a need for scanning the entire market. Metaljunction.com is now the largest e-marketplace for steel in the world, having sold over 4 million tonnes of steel for its clients and currently selling at an average rate of 150,000 tonnes per month. The buyer community of 5400 plus buyers comprising traders, fabricators, re-rollers and Users have placed their confidence on metaljunction because of the operational efficiency, transparency and equal access that the platform provides. Metaljunction'sclients have experienced significant benefits on migrating to online selling. Immediately on migration, from their traditional sale process, to the metaljunction online process, their price realizations increased by up to 23%. Business-to-business (B2B): B2B transactions are largely between industrial manufacturers, partners, and retailers or between companies. Business-to-Business refers to the full spectrum of e-commerce that can occur between two organizations. Among other activities, B2B ecommerce includes purchasing and pro

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    Metal Junction Case Study

    Uploaded by

    Ashish viswanath prakash
    4K views66 pages
    The winning junction Case study on metaljunction.com The case study is about metaljunction a joint venture initiative of SAIL and TATA steels,the story of their incorporation,business model and the people behind the success..A detailed analysis of business model and strategies is presented, its worth studying because its a glorious example of strategies which helped a nonconventional ecommerce iniative in not just surviving but creating saga of success where similar initiatives failed to put a hold.   Done by Group 3 SEC B FIRST YEAR MBA MIM ASHISH VISWANATH PRAKASH ANONA LEWIS NITESH SHARMA MSGS KARTHEEK NEETHU MURALI SHIBANI GANESH The Winning Junction: Case study on metaljunction INTRODUCTION Metaljunction is a joint venture between the Steel Authority of India Limited (SAIL) and Tata Steel for entering into the primary steel e-commerce business. Metaljunction would add the primary steel products of SAIL under its brand name and prices will be fixed by the company. Metaljunction also doing the e-selling of Tata steel's secondary materials including lazy capitals and dead assets. There is being a significant buyer base after its introduction. In order to entertain new buyers Metaljunction had included logistic services, finance services, metal and mineral auctions and e-cash management services in the site. Metaljunction is the largest e-commerce for steel in the world. It had sold more than 4 million tonnes of steel and currently selling at the rate of 150,000 tonnes per month. It is having more than 5400 customers base. The customers include traders, fabricators, re-rollers and end users. Metaljunction is having a long lasting relationship with the customers because of their operational efficiency, transparency and easy access from anywhere In 2011, mjunction1 completed 10 years, with FY’11 revenue of approximately INR 1 billion2 Earned from online transactions worth INR 248.5 billion that were consummated on its electronic Trading platforms.Mjunctionbegan as a fledgling start-up joint-venture in e-commerce in 2001, Co-promoted by Tata Steel and Steel Authority of India Limited (SAIL). Mjunction was incorporated as metaljunction services limited. It was renamed as mjunction services limited inJanuary 2007 after it had diversified into e-commerce in areas beyond metals. Metaljunction became one of theDivisions with its own portal at www.metaljunction.com. It began operations bySelling‘to-be-disposed idle assets’ and ‘secondary steel’ of its two promoters. Initial growth andStabilizationof the start-up was aided by success in e-sales of ‘secondary steel’3. It is today theLargeste-commerce site in India and the world’s largest e-platform for sale of steel, havingAchieveda CAGR of 80% over a decade. Tata Steel and SAIL now sell all their ‘secondary steel’ Online through metaljunction. Metaljunction.com is preferred when the volume is quite high and the buyer feels a need for scanning the entire market. Metaljunction.com is now the largest e-marketplace for steel in the world, having sold over 4 million tonnes of steel for its clients and currently selling at an average rate of 150,000 tonnes per month. The buyer community of 5400 plus buyers comprising traders, fabricators, re-rollers and Users have placed their confidence on metaljunction because of the operational efficiency, transparency and equal access that the platform provides. Metaljunction'sclients have experienced significant benefits on migrating to online selling. Immediately on migration, from their traditional sale process, to the metaljunction online process, their price realizations increased by up to 23%. Business-to-business (B2B): B2B transactions are largely between industrial manufacturers, partners, and retailers or between companies. Business-to-Business refers to the full spectrum of e-commerce that can occur between two organizations. Among other activities, B2B ecommerce includes purchasing and pro

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    The winning junction Case study on metaljunction.com The case study is about metaljunction a joint venture initiative of SAIL and TATA steels,the story of their incorporation,business model and the people behind the success..A detailed analysis of business model and strategies is presented, its worth studying because its a glorious example of strategies which helped a nonconventional ecommerce iniative in not just surviving but creating saga of success where similar initiatives failed to put a hold.   Done by Group 3 SEC B FIRST YEAR MBA MIM ASHISH VISWANATH PRAKASH ANONA LEWIS NITESH SHARMA MSGS KARTHEEK NEETHU MURALI SHIBANI GANESH The Winning Junction: Case study on metaljunction INTRODUCTION Metaljunction is a joint venture between the Steel Authority of India Limited (SAIL) and Tata Steel for entering into the primary steel e-commerce business. Metaljunction would add the primary steel products of SAIL under its brand name and prices will be fixed by the company. Metaljunction also doing the e-selling of Tata steel's secondary materials including lazy capitals and dead assets. There is being a significant buyer base after its introduction. In order to entertain new buyers Metaljunction had included logistic services, finance services, metal and mineral auctions and e-cash management services in the site. Metaljunction is the largest e-commerce for steel in the world. It had sold more than 4 million tonnes of steel and currently selling at the rate of 150,000 tonnes per month. It is having more than 5400 customers base. The customers include traders, fabricators, re-rollers and end users. Metaljunction is having a long lasting relationship with the customers because of their operational efficiency, transparency and easy access from anywhere In 2011, mjunction1 completed 10 years, with FY’11 revenue of approximately INR 1 billion2 Earned from online transactions worth INR 248.5 billion that were consummated on its electronic Trading platforms.Mjunctionbegan as a fledgling start-up joint-venture in e-commerce in 2001, Co-promoted by Tata Steel and Steel Authority of India Limited (SAIL). Mjunction was incorporated as metaljunction services limited. It was renamed as mjunction services limited inJanuary 2007 after it had diversified into e-commerce in areas beyond metals. Metaljunction became one of theDivisions with its own portal at www.metaljunction.com. It began operations bySelling‘to-be-disposed idle assets’ and ‘secondary steel’ of its two promoters. Initial growth andStabilizationof the start-up was aided by success in e-sales of ‘secondary steel’3. It is today theLargeste-commerce site in India and the world’s largest e-platform for sale of steel, havingAchieveda CAGR of 80% over a decade. Tata Steel and SAIL now sell all their ‘secondary steel’ Online through metaljunction. Metaljunction.com is preferred when the volume is quite high and the buyer feels a need for scanning the entire market. Metaljunction.com is now the largest e-marketplace for steel in the world, having sold over 4 million tonnes of steel for its clients and currently selling at an average rate of 150,000 tonnes per month. The buyer community of 5400 plus buyers comprising traders, fabricators, re-rollers and Users have placed their confidence on metaljunction because of the operational efficiency, transparency and equal access that the platform provides. Metaljunction'sclients have experienced significant benefits on migrating to online selling. Immediately on migration, from their traditional sale process, to the metaljunction online process, their price realizations increased by up to 23%. Business-to-business (B2B): B2B transactions are largely between industrial manufacturers, partners, and retailers or between companies. Business-to-Business refers to the full spectrum of e-commerce that can occur between two organizations. Among other activities, B2B ecommerce includes purchasing and pro

    Copyright:

    Attribution Non-Commercial (BY-NC)
    4K views66 pages

    Metal Junction Case Study

    Uploaded by

    Ashish viswanath prakash
    The winning junction Case study on metaljunction.com The case study is about metaljunction a joint venture initiative of SAIL and TATA steels,the story of their incorporation,business model and the people behind the success..A detailed analysis of business model and strategies is presented, its worth studying because its a glorious example of strategies which helped a nonconventional ecommerce iniative in not just surviving but creating saga of success where similar initiatives failed to put a hold.   Done by Group 3 SEC B FIRST YEAR MBA MIM ASHISH VISWANATH PRAKASH ANONA LEWIS NITESH SHARMA MSGS KARTHEEK NEETHU MURALI SHIBANI GANESH The Winning Junction: Case study on metaljunction INTRODUCTION Metaljunction is a joint venture between the Steel Authority of India Limited (SAIL) and Tata Steel for entering into the primary steel e-commerce business. Metaljunction would add the primary steel products of SAIL under its brand name and prices will be fixed by the company. Metaljunction also doing the e-selling of Tata steel's secondary materials including lazy capitals and dead assets. There is being a significant buyer base after its introduction. In order to entertain new buyers Metaljunction had included logistic services, finance services, metal and mineral auctions and e-cash management services in the site. Metaljunction is the largest e-commerce for steel in the world. It had sold more than 4 million tonnes of steel and currently selling at the rate of 150,000 tonnes per month. It is having more than 5400 customers base. The customers include traders, fabricators, re-rollers and end users. Metaljunction is having a long lasting relationship with the customers because of their operational efficiency, transparency and easy access from anywhere In 2011, mjunction1 completed 10 years, with FY’11 revenue of approximately INR 1 billion2 Earned from online transactions worth INR 248.5 billion that were consummated on its electronic Trading platforms.Mjunctionbegan as a fledgling start-up joint-venture in e-commerce in 2001, Co-promoted by Tata Steel and Steel Authority of India Limited (SAIL). Mjunction was incorporated as metaljunction services limited. It was renamed as mjunction services limited inJanuary 2007 after it had diversified into e-commerce in areas beyond metals. Metaljunction became one of theDivisions with its own portal at www.metaljunction.com. It began operations bySelling‘to-be-disposed idle assets’ and ‘secondary steel’ of its two promoters. Initial growth andStabilizationof the start-up was aided by success in e-sales of ‘secondary steel’3. It is today theLargeste-commerce site in India and the world’s largest e-platform for sale of steel, havingAchieveda CAGR of 80% over a decade. Tata Steel and SAIL now sell all their ‘secondary steel’ Online through metaljunction. Metaljunction.com is preferred when the volume is quite high and the buyer feels a need for scanning the entire market. Metaljunction.com is now the largest e-marketplace for steel in the world, having sold over 4 million tonnes of steel for its clients and currently selling at an average rate of 150,000 tonnes per month. The buyer community of 5400 plus buyers comprising traders, fabricators, re-rollers and Users have placed their confidence on metaljunction because of the operational efficiency, transparency and equal access that the platform provides. Metaljunction'sclients have experienced significant benefits on migrating to online selling. Immediately on migration, from their traditional sale process, to the metaljunction online process, their price realizations increased by up to 23%. Business-to-business (B2B): B2B transactions are largely between industrial manufacturers, partners, and retailers or between companies. Business-to-Business refers to the full spectrum of e-commerce that can occur between two organizations. Among other activities, B2B ecommerce includes purchasing and pro

    Copyright:

    Attribution Non-Commercial (BY-NC)
    of 66
    At a glance
    Powered by AI
    Some key takeaways are that Metal Junction started as a joint venture between SAIL and TATA Steel to leverage e-commerce during the dot-com boom. It has since become the largest B2B e-marketplace for steel in India and provides services like auctions, financing, and logistics.

    Metal Junction started as a joint venture between SAIL and TATA Steel during the dot-com boom to leverage the internet and e-commerce for steel sales. It launched in 2001 and focuses on selling secondary steel through auctions both online and offline. It also provides sourcing and selling capabilities.

    Some of Metal Junction's key services include auction services, financial services, rebar services, and logistics/inspection services to facilitate steel sales and transactions across India.

    METAL JUNCTION

    INTRODUCTION
    It all started with the dream of a person Viresh Oberoi,The MD and CEO of METAL JUNCTION Before starting this venture he spent his entire career with TISCO India being the 10th largest producer of steel in the world adding to the advantage SAIL and TISCO contributing over 60% of total steel production

    A time during the Dot-Com boom where there were many domestic and international players at that time. A perfect situation showed up when SAIL and TATA set up internal teams to evaluate How their respective companies could take advantage of Internet and E-commerce After months of speculation both the companies, which were located in the same geographical space decided to fuse ultimately to form METAL JUNCTION in 2001, soon to be named as the largest B2B E-Commerce website platform in the world.

    The basic functions or the activities that they deal are related to selling second hand steel Which they are a big dealers at. Followed by a systematic procees of Auctioning (Forward and Reverse) Ultimately they undertake both the functions of E-Sourcing and E-Selling To further continue, Metal Junction has included logistic services, finance services, metal and mineral auctions and ecash management services in the site.

    Coming to company analysis and their presence


    It began operations by Selling to-be-disposed idle assets and secondary steel of its two promoters. In 2011, mjunction completed 10 years, with FY11 revenue of approximately INR 1 billion Earned from online transactions worth INR 248.5 billion that were consummated on its electronic Trading Platforms

    A large B2B transaction that exist between industrial manufacturers, partners, and retailers or between companies

    Structure of Indian steel industry

    Reach
    I

    Buyer base

    products

    SERVICES PROVIDED BY THE COMPANY

    Auction services Financial services Rebar sevices

    AUCTION SERVICES
    With e-Sales process, steel consumers whether small or large, are assured of the quality delivered to them in the most simple, efficient and transparent manner anywhere in the country. Ensure that buyers remain not more than a click away from fulfilling their steel requirements. No time wasted in negotiations with company executives Transparent pricing based on market situation, totally free of bias Value added services like inspection and finance Reliable information on availability and quality of material Logistics and Inspection Service to deliver material anywhere in India

    E-AUCTION

    The process of an auction aims to find a fair price for the goods by identifying buyers who need them the most. Such auctions are called forward auctions, where buyers compete with each other by placing bids for the goods to be sold. Metal Junction pioneered the concept of eAuctions for steel by moving the entire process of auctions to the Internet.

    Metal Junction users have the independence of bidding via is desktop online platform or through our mobile application. Assistance is provided by tele-executives during the e-auction if faced by any issues

    Advantages
    No time wasted in negotiations with company executives Transparent pricing based on market situation, totally free of bias Value added services like inspection and finance Reliable information on availability and quality of material Logistics and Inspection Service to deliver material anywhere in India

    Financial sevices
    Buyer finance Collateral Free Finance for selected bidders To help raise capital for bidding, metal junction has forged partnership with many leading Indian banks. Channel Finance An exclusive offer from metaljunction to the sellers, in association with leading foreign and private sector banks in the country to enable client organization to sell to their Distributors Dealers on cash basis and eliminate debtors from the books altogether.

    Buyer Finance: How it works


    Customer Provides Expression of Interest with application form and documents to metaljunction Metaljunction will discuss with bank & once approved, set up over draft limit. Customer sends Finance Request for approved lots Bank processes request & directly makes RTGSpayment to the plant or issues Pay Order* Customer Lifts Material and makes payment to bank within due time limit**

    Who's eligible for buyer finance


    Only for bidders associated with SAIL, Tata Steel (Welspun and JSPL as well for TATA Capital Ltd.) and metaljunction for more than 3 years. Minimum 12 successful bids on metaljunction auction platform Sales Turnover Rs. 2 crs/Year Positive PAT for last 3 years Dependency on MJ should be 40 - 50% of the total turnover No delay in payment to MJ / Tata Steel & SAIL in the preceding 24 months. Name of the buyer/promoters should not appear under the RBI's/CIBIL Defaulters List.

    Channel Finance: Improving process efficiency & convenience


    Benefits: As a seller 100% secured payment 100% timely payment Single window in terms of online visibility of transactions Increased buying power for your channel partners 24 x 7 x 365 basis transactions Without any recourse (financial or otherwise)

    As a distributor/dealer Competitive cost of fund (better than existing working capital cost) No security or collateral attached (Clean credit) Hassle free documentation Over and above existing credit line Flexible tenure available (30 to 90 days) for repayment to banks

    Rebaring services
    Estimation & Detailing Delivering a diverse range of reinforcement solutions to the civil, commercial and residential construction industries, MetalJunction offers clients with several options of services to suit their individual needs on Estimation & Detailing. They communicate with the client to determine the client's needs for each job. Benefits Quality estimators & Rebar detailers Civil Engineers are always there to assist the estimation and detailing team Quality draughtsman are there to draw the necessary drawings Engineers are there to handle the 'Error management' on preliminary drawings As a value added service structural design advice can be provided in case it is needed

    Classifieds

    Industry info and news:

    Besides this they also provides subscription to their on magazines which contain latest news and trends in industry

    Analysis of Business model

    MetalJunction.com
    Re-engineering of the buying and selling

    Business model

    Value proposition
    Transforming (digitising) the marketplace by increasing connectivity for participants and reducing reliance on paper documents.

    1. 2. 3. 4. 5. 6.

    Better prices (price discovery) (flip side) Better process efficiency Time saving simplicity Transparency Value added services like inspection,rebar services and financing

    Better process efficiency


    To understand this we need to look at traditional system.

    DEMERITS OF TRADITIONAL MARKETING The catalogue should be changed every time it requires huge expenses in marketing and advertisements for the competition of quality, price and availability. The market place is limited to a geographical area. In traditional marketing, there is a need of lot of phone calls, emails and personnel meetings for the sale of the products. the transaction cost is very high -Cost of inventory, employee salary, order-processing cost and the administrative cost Traditional marketing requires a middle man for the transaction. Chance of error.

    Enhanced customer Focus Reduced Transaction Cost Integration of Supply Chain Focus on Core Business Vital Information available to customers Reduced Cycle time.

    Inspection & finance services to buyers


    Metaljunction offer logistic and inspection service to its buyers. The buyers can avail this service which is located anywhere in India. delivered to the customers on time at their door steps without any extra cost.

    Reliable information on availability and quality. Systematic approach and coordination. Pre determined transportation rate. Shorter lead time.

    Finance services
    online finance which is available 24X7, 365 days a year. Metaljunction provide this service at a competitive interest rates. Thus the public holidays and the Sundays are no more a constraint for business and commerce. Metaljunction has a integration with client ERP and the bank server for a smooth transaction.

    Better price? how?


    Eliminating intermediaries

    Reduced transaction cost

    For sellers
    Process efficiency Revenue enhancement:
    Market determined price Increased profit margin(no middleman) Opportunistic selling Focused selling- of excess inventory

    Transparency

    Revenue model
    1. Transaction Fees.
    Transaction fees have become a primary revenue stream Transaction fees are a charge on a percentage of the gross amount of each buy-sell transaction. Generally range from 0.5% on the transaction to 8% or more on more complex transactions.

    2. Advertising on magazines 3. Classified subscription 4. Alliances with financiers

    Market opportunity

    Diversification
    Mjunction collabration of: buyjunction,autojunction,valuejunction,coaljunction,financejunction,
    mjunctionedge,ejunction

    Expanding globally India emerging as BPO HUB Highly skilled,low cost work force-MJ can offer india based offshore eauction service B2C segment- staightline.com

    Marketing strategy
    Viresh oberois key formula for marketing: Creating / unlocking value is of prime importance and not getting eye balls. The deal must get consummated on the electronic platform and not offline. If value is actually being created, customers will have no problem in paying. Offering a service for free would not work. Starting small and ramping up fast is better than launching big

    Use lead management. Maximize the value for each lead. -

    Focus on the existing customers. Spend less on the new customers. lead nurturing campaignsIn case of secondary steel sales, the bidder groups were usually traders who were unfamiliar with computer/internet-based trading systems (Traditional bania families dominated this trade.) The initial task of market-making was to get this bidder group on-line.

    mental-Junction.Internet mein auction hoga dibbe mein yeh sab kam nahin hoga app ka dukaan bandh ho jayega
    Mjunction organized extensive training of traders.

    Content for later in the buying cycle.


    Make sure that the buyer finds you rather than you finding the buyer. Focus on the content which the buyer is looking for.

    Aligning sales and marketing team.


    Metaljunction interacts marketing and sales teams to create a single pipeline for revenue.

    Marketing should not be a cost center.


    The conception sales deliver revenue and marketing as a cost center should change. Investments in marketing should be justified on why they are investing and ROI

    competitors
    operates in a space which has very low barriers of entry and where there are a number of competitors Traditional trading

    Globalplayers www.e-steel.com Metalspectrum not functional www.metalsite.com


    One of the pioneers in b2b ,despite keeping careful tabs on the budget, like so many other dot-coms, simply ran out of cash.

    Competitive advandage
    TISCO being the 2nd cheapest producer on steel. Dynamic and innovative management team Transparency Simplicity Flexibility- listen to our customers, identify pain points and redesign processes to allay these pain points. services are built on a common platform thereby allowing to take advantage of common technology and technology infrastructure

    Operates both on the buy and sell side of value chain Customer orientation Value added services like financing and inspection,rebar services Certificates for standard

    Certifications and awards

    . Metaljunction also received ISO 9001:2000

    Management team
    1.Viresh Oberoi, MD & CEO
    Education: Business and Management Programmes IIM - Ahmedabad, INSEAD - CEDEP - Fontainebleau, France and Harvard Business School, Boston, USA

    Joined TATA Steel in 1978 as a Sales Trainee youngest Chief Sales Manager of Tata Steel. the implementation of SAP in Tata Steel for which Viresh was the Project Manager 2000, Viresh was selected to be the CEO of Tata Steel's latest joint venture with SAIL - metaljunction.com to etransform the steel supply chain

    2.Ujjal Bhattacharya, Vice President, metaljunction, valuejunction & autojunction

    Ujjal is a Metallurgical Engineer from Institute of Technology BHU and an MBA from XLRI started his career with TATA Steel in July '84 mjunction since Nov'01. 10 years of experience in sales at TATA Steel. Business Process Re-design in TATA Steel

    4.Soumya Sanyal, Head - Financejunction Soumya


    leads the emerging practice area for Financial Solutions which provides strategy, design and implementation for B2B market places.

    5.Rajarshi Chattopadhyay, Company Secretary &


    Head - Finance

    6.Deepak Bhattacharyya, Head - Coaljunction, mjunction services limited


    Work Profile: Deepak has over 16 years of extensive experience in the areas of e-commerce, sales and marketing, business development and key account management

    SWOT ANALYSIS

    strength
    The beautiful principle- aggregation
    the aggregation of buyers and suppliers, demand and supply on a common platform

    entry barrier in terms of costs high Value added services Loyal customers

    weakness
    Not always been able to differentiate themselves as an auction service provider from other small players it brings in pressure on margins Digitization did not embrace the whole steel trade ecosystem.
    Except for a few who buy steel from SAIL or Tata Steel, mJunction initiative has not touched the bulk of the trade sector. has not also been successful in embracing the primary steel sales

    Didnt think beyond auction model of e-c


    for instance, online negotiations, online e-financing and market-making?

    opportunity
    Diversification Primary steel- (they have already ventured into)
    Going global- scalability issue
    to expand globally and is on the lookoutfor suitable mergers and acquisitions Ithas already invested over US$ 8.5 millioni n technology and office space this yearand next years investment target is over

    B2C segment- staightline.com C2C segment


    The firm is now gearing up to conductauctions for retail surplus. Next year,it plans to launch a new integratedauto e-commerce portal catering to allthree segments business-to-business(B2B), business-to-consumer (B2C) andconsumer-to-consumer (C2C) by offeringspecialised services such as e-auction,e-classifieds, e-retailing

    public offer (IPO)

    Threats
    Expansion into b2c,c2c, is it good for mjunction?
    additional investment Low volume in b2c-cost issues Risk of crash-like other pioneers

    Bulk of mjunction business right now is based on e-auctions that unbundles the process of price discovery from other trading processes. This unbundling, to the extent that it is achieved on the ground, along with the reach afforded by internet based technologies allow a more intense competitive market to spring up around the auctions

    International players scalability issues Logistic support partners??- cost? competition

    Thank you GOD


    Thank u everyone

    questions
    Questions for Discussion: 1. How has an Indian e-commerce company like Metaljunction Services Ltd., which primarily procures and sells commodities like steel and coal, managed to become the largest e-market place for steel in the world? 2. Metaljunction should restrict its activities to the steel sector. Its expansion into varied sectors will have a negative impact on its core competency sector i.e. Steel.'Discuss. What measures should the company take to expand its operations globally and become a global e-marketplace like alibaba.com, ariba.com or worldwideretailexchange.com

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