Case Study- Pak Wheels

Q1. How does Pakwheels.com create value for its customers? How is it different from
existing/traditional car dealer models?

Disparate other car dealers, Pakwheels.com's work is very varied and unique, making them more
open and effective in their car handling activities. In addition, because of their innovative way of
doing the job, Pakwheels.com has made it possible to create an outstanding value for its clients,
because of their large and varied membership and their freedom of expression at the discussion
boards, allowing them to achieve incredible user commitment and loyalty. Another manner in
which Pakwheels.com is different from most car dealers is that they used the right use of their
platform, and if there were no social channels available to promote the introduction of the
website, one thing they did was to advertise the website by its contents. Pak Wheels evolved
organically with people signing in to the website, asking questions, receiving useful responses,
sharing feedback and photographs, and observing on others. Almost immediately, with new
people entering the group, Pak Wheels turn into Pakistan's biggest car enthusiast community.
Whereas, traditional car trading has created many obstacles for both the consumer and the seller.
The customer needs to visit several locations. The purchaser would visit several merchant stores
to find the perfect vehicle and pay a larger price than the real marketing price due to the
merchant's margin. Likewise, the purchaser must keep the vehicle with the dealer for a longer
period before the buyer has found or sold the car to the merchant at a concession at the real
marketing worth. Some of the other functioning of Pak Wheels made them different from other
dealers which also helped them to boost the value for its customers,

1. Even with the growing industry and business, Pak wheels held a check on its website and
updated the technologies with a modern web design. This has significantly modified the
design of Pak Wheels, assembling it more accessible and modern, without changing the
main structures of the automobile listing.
2. In order to ensure the worth of content, every solo ad and picture earlier should go live
and must be approved and reviewed by dedicated team members, allotted for this
purpose.
3. Pak Wheels introduced an auto blog run by trained auto reporters and content publishing
supervisor. The blog displayed car analyses, news, opinions, and other info that
contributed to a substantial recognition of the Pak Wheels brand.
4. In different cities, Pak Wheels also arranged several large-scale auto shows every year
and small ones meet every fortnight so that consumers could know each other
individually. Pak Wheels has begun working with other auto-related activities, which had
a strong crowd of “30,000–40,000” participants. Both of these events have strengthened
the efforts of Pak Wheels to grow the neighborhood.
5. The business model of Pak Wheels generated worth by lowering search and processing
expenses in the relationships between car purchasers and suppliers that created an auto
 services ecosystem—all details on purchasing, sale, analysis, auxiliary services, etc. can
be found at Pakwheels.com.
6. Pak Wheels concentrate on the production of equity through the distribution of resources
and goods rather than profits.
7. Pak Wheels has launched new marketing promotions. In-house Pak Wheels experts used
proven tactics such as SEO, paid hunt marketing and remarketing to take full advantage
of website visibility to aimed markets across multiple online networks.

Q2. How do you assess the company's business model? What are its strengths and
weaknesses?

Different factors come into play when a Company's business model is to be evaluated or
analyzed but before that one must ask rare basic questions in order to comprehend the basic
strategy of the business, these questions are below :-

 What strategy or tool will make the business model legitimate and guarantee that it is the
best decision for the company?
 What tool should be used to evaluate and track a company on a daily basis?
 What measures are needed to ensure quality progress in my business?

There can be more questions in order to deeply understand the structure of the business model,
but these three are the most essential subjects to be looked upon.

Pak wheels' core business model was to expand in the online-classified car market, not only
proud of the successes of the website, but also actively contribute to forums. A good amount of
money has also been spent on the domain and on the internet for business purposes.

Pakwheels.com has turn out to be one of the rare foremost name in Pakistan's online business
built on overall industry growth led through a growing operational population online and
expanding web traffic. Their professional model was very simple, it did not burden visitors, but
certain payments were accused for marvelous advertising on the website. They were so dedicated
to developing society that they kept financing in the website. In addition, Pak Wheels has spent a
small amount in selling stickers to group members to help the portal. In July 2015, the business
expanded to 250 staff, with more than 350,000 registered users, and website attracting 20 million
visits a month, 8 out of 2 million visitors, 9 and 45,000 car, lists.

Power of the market model:-

 It attracted many consumers because of its diverse scope.

 They became one of the rare foremost brands in Pakistan's online business due to the
online community and rising web traffic.
  Various purchases such as Lead Generation, Featured Ads, and Dealership Bundles
helped them gain more money.

The drawbacks of the business model:-

 If PECA 2015 applied in their severest procedure, there would be a strong risk that the
rules could be severe and that a certain number of trustworthy supporters could be
eliminated.
 A lot of money has been spent on domains and hosting. Customer-to-customer contact
helped as a free market model, with consumer comfort in mind. As a result, Pak Wheels
made absolutely no revenue from C2C experiences.
 While Pahuja and Bhatti wanted Pak Wheels to produce, they were not having the time
and resources to commit and felt the necessity for second hand to cope with the fast
expanding community.

Q3. Which of the two options should the company choose in order to scale up and why,
using the investor funding going forward?

Option 1: Delay in cyber terrorism bill, but OLX targeting the second hand car market with their
$0.5 million marketing promotion must be seen as a critical obstacle to the future of Pak Wheels
and must therefore be balanced by an effective marketing plan.

As the case indicates that federal measures was being discussed, some industry observers said
that it could be postponed for a few years, and even though it was quickly enforced, they didn’t
expect tight enforcement, knowing the country's present position of e-commerce legal
requirements.

However, one of the choice that the management of Pak Wheels might explore was only to
watch to see how early and how seriously this regulation could be enforced. In addition, the point
is quite true that splitting the Pak Wheels website from two independent pages could result in the
loss of their faithful founder members and customers. This will alienate the followers of their
fans and could end up confusing and frustrating them in the way first-hand websites would be
track. The reasoning behind OLX's response is very straightforward, and Pak Wheels needed to
achieve critical mass quickly. Their Social Media campaigns have only been successful to a
certain degree. Over time, returns/traffic will stall and eventually continue to lose important
audience to OLX or some other potential business applicant with deep pockets.

In addition, with OLX gaining attention and energetically promoting its trademark, this rivalry
may be harmful to the prospects of Pak Wheels. In order to progress to the next stage and
improve the brand, the Pak Wheels team aims to devote in ads and conventional ATL tactics,
since there is a large portion of the people that cannot be aimed at only online advertising
because they do not believe in online purchasing and selling. With investor capital, now will be
the best time to spend heavily in building up a communications department, recruiting innovative
and advertising firms, and developing a economical TVC to respond to OLX. The Pak Wheels
team's rough budget estimate revealed a spectacular $1.5 million figure for designing and
implementing a sensitive operation against OLX in major cities. In addition, while it is true that
starting up an online company is not capital concentrated, scaling up involves a considerable
amount of wealth.

Option 2: Pak Wheels did not try to react to OLX as a challenge besides rely solely on their own
product growth and community interaction power. In addition, the cybercrime bill could be seen
as a significant threat to industry and reacted to in articulate manner.

OLX is a straight portal with multinational standing and expertise and wider pockets than Pak
Wheels. It makes no sense to contend head-to-head with OLX because OLX runs on a different
market model and serves a wide variety of diversified consumers, while Pak Wheels focuses
very sharply on automotive news, events and consumers. This should be seen as its power, and
Pak Wheels should not be included in a media race.

Pak Wheels The flow of funds would not be uniform in nature, and it may be a very dangerous
maneuver to sustain such heavy communication-only campaigns. Creating TVC and purchasing
media in Pakistan is a costly job, and with so many new Pak Wheels projects at its infancy, it
would not be prudent to shift all money and focus to needless media participation. Until now, the
Pak Wheels team has not invested big marketing dollars, showing its entrepreneurial and tech-
savvy thinking.

Their yearly marketing budget for 2014 amounted to a total of $0.7 million ($0.3 Internet
Marketing and $0.45-007) relative to the OLX initiative, which was ready to spend $0.5 on a 3-
week long campaign. More specifically, taking into account that the Pak Wheels team has no
expertise in designing and executing ATL marketing campaigns in the past, an aggressive media
strategy could backfire. Instead of marketing, Pak Wheels should concentrate more on
developing product teams by moving focus from just traffic, diversification, better
categorization, better precocious development and quality of content. People need a wealth of
expertise for particular categories where a massive sum of money or confidence is at stake. That
is why, while horizontal classified websites (such as OLX), spending a significant amount of
money on TV would pose a minimum challenge to vertical sites (such as Pak Wheels). The
teacher may conduct a basic exercise to demonstrate that the awareness raising of online
websites may not result in real sales on such pages. The teacher may ask students how many of
them have heard of any online classifieds, and then ask if they have ever sold or purchased
something from that website.

As a result, this exercise would illustrate the fact that TOM does not have a very clear connection
to the real customer purchase on the web platform relative to retail networks. The latest
cybercrime should certainly be deemed a hazard, and the Pak Wheels team should try to stop it in
a smart way. As the case explains, for its web platform entry, Pak Wheels operated two different
networks with slightly distinct logos, a marketplace for buying and selling solely, and a
marketplace for catering mainly to chat platforms and groups. The same may be said with the
website of the parent. This will minimize the possibility of losing their key business leg in the
event of cybercrime laws publishing threats to the website.

Q4. Overall, what would you do differently to grow a business such as Pak Wheels if you
were the entrepreneur behind the wheel instead of Suneel Sarfaraz Munj (CEO, Pak
Wheels)?

Pak Wheels business model was already up to the mark wich exquisitely didn't require any major
changes or modifications, but with the growing age and technology, there are a few things which
can definitely be adapted by the company to better growth and performance, some of those are:-

 Now when social media has become such an integral part of this generation, Pak Wheels
can step into the social world to attract more customers.

 Targeting marketing strategies to expand the company, whether digital or conventional.

 Mergers and Transactions, Pak wheels can search for weaker companies to approach or
buy mergers.
These are some ways in which Pak Wheels can expand their company and increase their market
share along with their reach to the audience.